Metromile, a San Francisco startup with “pay per mile” auto insurance, next month will become the first insurer in California to cover UberX drivers for both their personal rides and the time they are waiting for requests from paying passengers. “For the first time in California, drivers for UberX will have a (policy) that covers Period 1, the time between when the driver turns on the app and announces to the world that they are available to drive someone somewhere and the moment in which a rider indicates they want to be picked up,” said state Insurance Commissioner Dave Jones, whose office approved the new policy. Uber, like other ride-hailing companies, complies with state law requiring $1 million insurance to cover the time from when a driver accepts a ride request until the passenger exits the car. Metromile uses a small device called a Metronome that plugs into a car’s diagnostic port, located under the dashboard, to track how many miles a car drives. “Metromile has created an innovative product that responds to the needs of the insurance marketplace,” said Uber regional general manager Andrew Macdonald in a statement. Under a technology agreement between Metromile and Uber, the ride-hailing company’s app will send Metromile real-time reports on drivers who have agreed to the arrangement so they won’t be billed for insurance when they are picking up or driving passengers. Metromile’s device in conjunction with a smartphone app can also give drivers insights into their fuel use and engine diagnostics, and even can notify drivers in San Francisco if they need to move their cars to avoid a street-sweeping ticket. Jones, the California insurance commissioner, said several other companies have expressed interest in creating new products to cover the Period 1 insurance gap, and that his office will make it a priority to review such applications quickly.

 

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