For drivers today, personal auto insurance is a required purchase with few options. Yes, you can buy a policy online, over the phone, or in-person with an agent from a big company or a small company. But at the end of the day, most policies provide a few coverage options over a period of 6 or 12 months.
That sort of "business as usual" approach doesn't mesh well with the demands of the freelance economy or the needs of the rideshare driver for a couple of important reasons.
- For starters, rideshare drivers have different insurance needs. Personal auto insurance policies might not cover rideshare drivers or their vehicle during trips. That's because while a rideshare driver is working, their personal vehicle has become a commercial vehicle - and a personal insurance policy typically doesn't extend to commercial driving activities.
- Second, rideshare drivers need flexibility. This can mean flexibility to drive when and where they want - or for whatever reason they choose. Paying 6-month or 12-month insurance policies isn't flexible, especially if a rideshare driver is only driving 10-30 hours a week.
OptOn wants to help solve these problems with an on-demand, micro policy insurance option.
So what exactly are micro policies and how do they work?
Micro policies with optOn are insurance policies specifically developed for eligible rideshare drivers that extend up to four hours long and cost just cents per mile. When you're ready to start driving, you can select a policy in the optOn app and start coverage with the tap of a button.
This policy is effective for the next 4 hours and you only pay for the distance traveled. You can tap off coverage at any time, or, once you near the end of the 4-hour window, purchase another micro policy to keep driving and earning, all while staying covered.
The flexibility of the micro policy allows rideshare drivers to experience peace of mind knowing they’re protected – and only protected when they need to be.
In addition, the tap on, tap off functionality of rideshare insurance with optOn allows for ultimate flexibility to keep drivers and their vehicles on the road.
We're gearing up for launch, so to learn more, visit our homepage.
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