The automotive industry is in the middle of a paradigm shift, and insurance companies are acting to stay relevant.

Ridesharing services, such as Uber and Lyft, have overtaken the decades-old taxi industry in just a few short years, providing such convenient access to transportation that drivers in some urban areas are forgoing vehicle ownership altogether and relying on the service.

At the same time, major auto manufacturers have poured billions of dollars into research and development of autonomous vehicles, aiming to eventually eliminate drivers, reduce accidents and automate everything from the shipping industry to your daily commute.

Both of these emerging technologies create profound long-term implications for the auto insurance industry, which relies heavily on individual policies for much of its revenue.

In an early effort to retain business in this changing market, insurance underwriter Chubb Ltd. has teamed up with Sure Inc. to offer RideSafe, a recurring, short-term insurance policy for passengers who frequently use ridesharing services.

Don't ridesharing companies already provide coverage?

If you've used Uber or Lyft before and assumed you were already covered, you're probably not wrong. For example, Uber maintains insurance on behalf of its drivers while they're logged into the app, and the company requires its drivers to maintain their state's minimum required insurance for coverage while the app is not in use. If you're a passenger paying for an Uber ride, you're covered by these policies.

Additionally, if you carry health insurance, that policy would typically provide medical benefits for accident-related injuries as well, as long as you haven't already been compensated by another policy.

However, RideSafe was created to fill potential gaps in these policies, according to Sure Inc. CEO Wayne Slavin, as reported by The Wall Street Journal.

Whether these gaps are significant enough to warrant paying for an additional policy is up to you.

What gaps does RideSafe cover?

There are at least two areas where RideSafe could provide additional coverage: payment for medical insurance deductibles and a death benefit.

For $2.40, riders could purchase $10,000 of medical insurance and a $100,000 death benefit. The policy would remain in force for 24 hours, and you can set it up to renew every time you use the ridesharing service.

Your medical expenses should already be covered by the insurance policy the ridesharing company maintains on behalf of its drivers. But if you have delayed or ongoing medical expenses related to a ridesharing incident, and you choose to file a new claim with your own medical insurance company, RideSafe might help you pay any deductibles you may owe, up to $10,000.

Additionally, medical insurance does not typically provide a death benefit, which could help your family pay for your burial and funeral expenses, or replace income lost in your absence. RideSafe's death benefit could do just this.

However, if you're killed in an accident, the ridesharing company's insurer—or the at-fault driver's insurer—would likely be held liable, and payment for these losses may be procured from one of those companies.

Finally, if leaving a benefit to loved ones in the event of your death is a major concern of yours, and you're in good health, you might want to look into a term life insurance policy instead. Term life insurance can provide affordable coverage well beyond the scope of RideSafe's policy.

The announcement of RideSafe presents an interesting peek into how insurance policies may develop in the years to come, as individuals find themselves spending more time in the passenger seat and less time behind the wheel. However, its coverage doesn't seem like an absolute necessity for most situations. But if you do decide additional coverage is something you want, $2.40 is a small price to pay for peace of mind.