Technology Enables Gig Economy Car Insurance

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Gig Economy drivers may face some complications when it comes to their car insurance.

First, when they activate an app and start using their vehicle to generate income, their personal auto insurance policy no longer provides coverage – they need a commercial policy.

Beyond that, coverage may depend on whether or not a passenger is in the car, waiting to accept a fare, and on their way to pick up a fare.

“There are all these rules and covers and the lack of covers,” Dustin Walseyco-founder and president of Loopsaid PYMNTS.

Make sure the cover will get the car back on the road

To make things easier for those serving the shared economy, Buckle offers rideshare and delivery drivers personal and business coverage in one auto insurance policy.

“They buy a Buckle policy, and it becomes the simple, one-stop shop, ‘I come to Buckle for everything – for all my payments, for all my claims, for whatever happens,’” ​​Walsey said.

Another problem for on-demand economy drivers is that when their car is in the store after an accident, they can’t drive for the ride-sharing or delivery company. As such, they need a policy with a deductible that they can afford, so they can get the car back on the road.

Get more granular data with telematics

In addition to providing coverage designed for these drivers, Buckle has added a new option: a mobile app that measures both the insured’s driving quality and the time they spend driving economically versus driving. personal. This data helps drivers improve their behavior and helps Buckle offer personalized pricing.

The app establishes a driving score based on hard acceleration, braking or swerving, speeding and phone use. Buckle uses this data along with other granular details, such as night versus day driving and passenger versus package transport.

“We’re all using these different data sets — and telematics enriches our data — so we can get more accurate pricing to pass those savings on to those drivers,” Walsey said.

See also: Telematics allows insurers to monitor driving behavior and promote safety

Using onboarding and digital payments

To make it easier for drivers to purchase a policy, with or without the telematics option, Buckle offers a very digital onboarding experience.

Although it must ask the questions any insurance company would ask, such as name, address, and VIN number, the company uses datasets to prefill where possible. This is mostly done through the company’s app, as drivers often get quotes while waiting for rides.

“Nobody says, ‘I’m excited to go get car insurance,’ so at least we tried to make that onboarding experience as clean and easy as possible,” Walsey said.

For installments and monthly payments, Buckle accepts digital payments authorized by its payment processors. Gig Economy drivers tend to have bank accounts because that’s how ride-sharing and delivery companies pay them, so they have debit or credit cards.

“I think we’re lucky in our customer bases — they all have to have some sort of account that their earnings go to,” Walsey said. “It’s a pretty clean process.”

Related: Visa: Real-time payments are an ‘expectation’ among gig workers in Canada

Making Innovations in a Difficult Business

When paying claims, Buckle tends to use either checks or Automated Clearing House Transfers (ACH). Insurance companies, body shops and individuals have their own preferences, and the industry as a whole is slowly changing, in part because it’s regulated at the state level – so there are 50 different entities with which to treat.

“That’s why you see some of the slower innovation on some of these payment processes,” Walsey said. “I mean, one day I wish I could take Venmo, Zelle and all of those – and it’s definitely in the roadmap – but the insurance industry is a very tough business from a technology perspective. , simply because it’s this big behemoth of an industry”.

For gig economy drivers looking to insure their vehicles, Walsey suggests that they always be very clear with their insurance companies about what they are doing. If they do something that is not covered by their current policy, they may learn the hard way that something they thought was covered is not.

“Nobody’s happy when the coverage isn’t good, and it all comes down to transparency,” Walsey said. “We’re very transparent about what we’re trying to do and how we’re trying to do it, and people should be too – it’s just in their best interest to protect their car.”

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NEW PYMNTS DATA: 57% OF CONSUMERS PREFER ADVANCED IDENTITY VERIFICATION AFTER TRIING IT

On:Fifty-seven percent of consumers who used advanced identity verification methods such as voice recognition when contacting customer service say they would do it again. The Consumer Authentication Experiences report surveyed nearly 3,800 US consumers to find out how delivering innovative verification experiences helps businesses deliver superior customer service across all channels.

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