Nationwide to launch coverage by ride time

Nationwide plans to introduce new insurance coverage geared for drivers who have a side hustle working for a ridesharing service.

Through a new partnership with insurance-technology company Slice Labs, drivers can get coverage for exactly the time they spend working for ride-sharing companies such as Lyft or Uber, whether it is a few minutes or a few hours. Nationwide said it expects the coverage to be rolled out this fall.

“This is a flexible and comprehensive insurance program with the driver in mind,” said Teresa Scharn, associate vice president of product development for Nationwide.

Coverage costs will work out to be cents on the mile, depending on the coverage a driver buys, she said.

Typical auto policies generally don’t cover drivers who are carrying passengers for a fee. This coverage will differ in that it can be bought to cover specific periods of time.

Ride-sharing companies might provide coverage as well, but when coverage is actually in place and who is being protected can be confusing and inadequate, Scharn said. And coverage provided by ride-sharing companies often is more about protecting the company than driver, she said.

With Slice Labs, drivers will be able to activate an app when they are working, then turn it off when they’re done, she said.

“The ride-share market is a prime example of the benefits of providing on-demand services to consumers,” Slice Labs CEO Tim Attia said. “The partnership with Nationwide is an important step in the evolution

of the traditional auto product to meet the demands of future mobility solutions in an increasingly digital and on-demand world.”

Nationwide has struck a number of partnerships and investments with financial technology companies during the past couple of years. A month ago, the company announced plans to offer auto-insurance coverage by the mile.

It is the start of building a policy based on a driver’s individual needs, and taking into account that drivers eventually will have autonomous vehicles, Scharn said.

Insurers are working toward creating polices to cover exact periods, whether it is a driver working for Lyft or someone renting a home for Airbnb for a couple of days, said James Lynch, chief actuary for the Insurance Information Institute, an industry group.

“Because of technology and smartphones, insurance companies have the ability to turn that coverage on and turn it off at distinct points of time,” Lynch said. mawilliams@dispatch.com @Bizmarkwilliams