HyreCar To Implement Captive Insurance Solution for Ridesharing

Through a joint venture, HyreCar, Inc., will partner to create a captive insurance company designed for car sharing in the ridesharing space. The joint venture extends an ongoing partnership the company has with commercial auto insurance business veterans Dave Haley, CEO of American Business Insurance Services, and Peter Foley, CEO of LILCHA Holdings.

HyreCar is an online car rental service for people who want to earn money driving for ridesharing and delivery services. Founded in 2014, the privately held Los Angeles-based company enables qualified drivers 21 years and older to rent high-quality vehicles by the day, week, or month. The company offers cars in 34 states and Washington, DC.

HyreCar said it brings "mobility as a service" through vehicle owners and institutions, such as dealers and original equipment manufacturers, who have been disrupted by automotive asset sharing.

On its website, HyreCar said, individuals, such as car owners looking to rent out their extra car for cash, or private companies, such as businesses and dealership with unused vehicles, may list cars through the platform.

In a company blog, HyreCar said its insurance policy is $10 a day for drivers only, covering up to $25,000 of vehicle damage and up to $300,000 liability with a $2,500 deductible. While driving for Uber or Lyft with a HyreCar rental, Uber or Lyft's insurance policy picks up the coverage while a passenger is in the car.

Joe Furnari, CEO of HyreCar, said, "This [venture] … cements our relationship with two of the most well-respected [commercial auto insurance] industry veterans [and provides] scalable InsurTech solutions for users on the platform."

According to a statement, the captive venture will allow the company flexibility to reduce risk and increase profit margins while providing tailored insurance solutions for the on-demand economy.

Mr. Foley said that the venture "will drive innovation for HyreCar and ridesharing."