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One of the biggest issues when it comes to auto insurance these days is how policy providers are going to deal with people who use their cars not only to get from Point A to Point B, but also serve as a sort of unlicensed taxi service through popular ride-sharing apps. Now, it seems as though many such companies are starting to provide a new type of coverage above and beyond traditional plans for those people specifically, with an eye toward keeping the policies affordable. While these new coverage types are being rolled out, it might be important for insurance agents to do a little bit more when it comes to helping people understand their liabilities when they participate in such services, and what they can do to better protect themselves.

These services have grown so popular that some insurers are starting to extend the pay-by-the-mile insurance many people have moved to adopt in the last few years to these kinds of habits as well, according to a report from Property Casualty 360. As with any other such service, rates are based on driving history, age of driver, and where the car is kept, but are extended specifically to habits related to services like Lyft and Uber. All people have to do is plug a device into their dashboard when using the service.

Why is this helpful?
In many cases, the amount people would have to pay in addition to their standard auto insurance policies if they're drivers for ride-sharing services is likely to be significant, the report said. But by using pay-as-you-drive coverage, which is based on mileage instead, those who only engage in the activity occasionally, or in relatively small areas, are likely to save a lot of money on their plans while still getting the necessary added protection they might need.

The more insurance agents can do to help people understand what their policies do and do not cover, as well as the ways in which they might be able to increase those protections, the better off both the professional and their clients are likely to be going forward. For drivers, this kind of added knowledge will often help them make more informed decisions about how they're going to proceed with coverage, while agents will enjoy the benefits of an improved relationship. That, in turn, could lead to higher customer service ratings, and even retention rates.

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