The startup Metromile looks to cover Period 1, the time between when an UberX driver turns on his app and when a passenger indicates they want to be picked up. Period 1 has been an issue for Uber. Uber already provides insurance but only once a driver accepts a ride request. Metromile uses a small device that plugs into a car's diagnostic port to track how many miles a car drives. The startup sets a monthly fee plus a per-mile rate
Metromile, a San Francisco startup with “pay per mile” auto insurance, next month will become the first insurer in California to cover UberX drivers for both their personal rides and the time they are waiting for requests from paying passengers. “For the first time in California, drivers for UberX will have a (policy) that covers Period 1, the time between when the driver turns on the app and announces to the world that they are available to drive someone somewhere and the moment in which a rider indicates they want to be picked up,” said state Insurance Commissioner Dave Jones, whose office approved the new policy.