Root Insurance, in partnership with Lyft, is offering policyholders ridesharing credits for free trips after an automobile accident, the companies announced.
The agreement allows claimants with short-term needs—of less than a week—to forgo renting a car while their vehicle is in the shop. Both rental car and ridesharing options will be available to policyholders at the time of the claim, Root says. However, ridesharing helps customers avoid arranging the pick-up and drop-off of a rental as well as waiting for carrier reimbursement.
“The claims experience is notoriously bad. You’ve just gotten into an accident and now you have a mountain of paperwork, agents with questions and the added bonus of no car,” said Alex Timm, co-founder and CEO of Root, in a statement. “Through our partnership with Lyft, we’re making sure we don’t add to the stress of an already bad day.”
Two carriers in California, including CSAA Insurance, are already piloting with Lyft on similar claims initiatives. Each project has resulted in significantly higher customer satisfaction ratings so far, Lyft says.
“We’re always looking for new ways to innovate within existing industries, and insurance is definitely a place we can make a huge impact,” said Kevin Dulsky, head of strategic partnerships at Lyft.
Root’s new offering follows its “Lyft on Us” collaboration announced on Mar. 16, which gives policyholders free ride credits on St. Patrick’s Day, Independence Day and New Year’s Eve—holidays policyholders are more apt to drink and are considered a danger to themselves.
“Building an insurance company from the ground up means that we have room to explore these new perks and programs that break the mold,” said Dan Manges, CTO of Root. “It’s the power of innovation paired with really good insurance.”
In addition to its new claims offering, Root also announced it is expanding coverage to Oklahoma and Indiana, The Columbus, Ohio-based insurer is now licensed to sell policies in four states including Arizona and its home state of Ohio.
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