Peer-to-peer motorcycle rental company Riders Share has developed a branded offering for collision insurance to lower the cost for customers, President Guillermo Cornejo told Powersports Finance.
Launched last month, Riders Share Insurance Co. allows Riders Share to reduce insurance costs by applying machine learning to calculate the probability that the consumer will get into a collision on a Riders Share motorcycle. As the system learns more every month, it will allow the company to better predict risk, thus lowering insurance costs for certain customers.
“We mainly launched it to decrease insurance costs, control the claims experience and keep all collision data to ourselves,” Cornejo said. “Basically, we keep the insurance carrier’s profit, and we also use claims adjusters specialized in the sharing economy and all the fraud specific to it. It gives us a cost advantage, and as we grow, you will start to see it in the form of lower fees for our users.”
Riders Share Insurance Co. covers collisions, while a third-party provider supplies liability coverage. A consumer does not have to purchase a collision damage waiver before renting a bike on Riders Share. “We provide insurance for all owners in case the renters decline to buy the damage waiver, can’t afford it or do not have a personal insurance policy to cover an accident on a rented motorcycle,” Cornejo explained.
Marina del Rey, Calif.-based Riders Share has 2,600 bikes listed on its site, Cornejo added.
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