VOOM Insurance, an Insurtech company that provides data-driven, usage-based insurance products for the future of mobility, is launching its latest offering – VOOM & Drive – a usage-based insurance auto policy designed specifically for rideshare and delivery drivers. Unlike standard auto insurance policies that often put rideshare or delivery drivers at a disadvantage, VOOM’s rideshare insurance specifically caters to gig drivers by taking into consideration their unique usage patterns and mileage. VOOM’s tailored insurance model offers more affordable and entirely personalized rates that truly match each driver’s needs, enabling drivers to save up to 60% compared to their current traditional insurance policies. VOOM & Drive is currently available in Tennessee and Arizona, and the company plans to expand to additional states in the near future.
Despite the ridesharing market’s projected growth to $231 billion by 2027, gig drivers, such as those affiliated with major platforms like Uber, Lyft, DoorDash, and Amazon Flex, frequently face unfavorable insurance terms. In 2023, there was a notable 19% surge in car insurance rates, the highest annual increase in 47 years, further straining the finances of gig drivers.
Most gig drivers currently overpay for their personal insurance. On average, 62% of annual miles driven by US drivers with personal vehicles are for commuting to work, a scenario that doesn’t apply to gig drivers as driving is their work. As a result, gig drivers predominantly use their vehicles while working, either en route to or with a passenger, activities generally covered by the gig platforms. This situation leads to rideshare and delivery drivers paying higher personal insurance rates despite their actual risk exposure being covered by the platforms.
“VOOM’s mission is to provide equitable insurance products for the future of Mobility. Having achieved this successfully in the aviation and motorcycle segments, we are proud and excited to introduce VOOM & Drive, our newest addition. Leveraging our AI-powered technological platform, VOOM & Drive caters directly to the evolving needs of the gig industry. It ensures gig drivers pay insurance premiums based precisely on the miles they’ve driven, nothing more. This subtle, yet integral shift in approach will significantly impact drivers,” said Tomer Kashi, CEO and co-founder of VOOM.
Harry Campbell, the founder of The Rideshare Guy, said, “I’ve interacted with tens of thousands of drivers over the past 10 years covering the rideshare and delivery industry, and insurance continues to be one of the biggest challenges for gig workers. VOOM’s product is tailor-made to the unique needs of gig drivers and helps them save more, while also avoiding gaps in coverage. I most definitely encourage drivers to check out VOOM today!”
VOOM seamlessly integrates with gig drivers’ accounts – such as Uber, Uber Eats, Lyft, DoorDash, Amazon Flex and others – at the beginning of the quote process, gathering data such as vehicle and driver information, along with other driving-related details. The accuracy and detail of this level of data, collected by VOOM’s innovative AI-driven technology, enables a pinpoint portrayal of drivers’ activities, resulting in insurance costs that are calculated based on the individual, for the individual. Utilizing odometer readings and trip details from rideshare platforms, VOOM determines charges only for off-platform mileage, while deducting the rideshare platform mileage, ensuring fairer and more accurate insurance rates.
Additionally, VOOM bridges common insurance gaps between commercial and personal activities. For instance, in the event of a physical damage claim, VOOM covers the difference between Uber/Lyft’s $2,500 policy deductible and VOOM’s policy deductible.
