Travel Smart: The Power of Embedded Insurance in Your Daily Commute

Travel More Safely!

Have you ever gotten into a rideshare car, electric scooter, or shared bike and wondered: “What if something goes wrong along the way? Am I protected?”

What many people still don’t know is that, in many cases, this protection is already there—quietly embedded into the experience. We’re talking about embedded insurance.

But what exactly is embedded insurance?

Put simply, embedded insurance is integrated directly into the service you’re using, without you needing to purchase it separately.

It is activated automatically, in a transparent way for the user.

For example: when you request a rideshare in the United States, like an Uber, you may be automatically covered by liability insurance and even personal accident coverage during the trip.

The growth of urban mobility services

With increasing urbanization across the Americas and the search for more practical and sustainable alternatives to traditional transportation, mobility services have gained traction.

In the United States alone, it’s estimated that more than 70 million people used some type of micromobility service (such as e-scooters and electric bikes) in 2023.

And it doesn’t stop there. In Latin America, countries like Mexico, Brazil, and Colombia are also increasingly adopting solutions such as rideshare apps, carpooling, and alternative modes of transport to beat traffic and save time.

But along with convenience come risks: accidents, injuries, thefts, and even delays caused by unforeseen events.

How does embedded insurance work in practice?

Imagine you’re in New York and call a Lyft to get to work. During the ride, there’s a minor collision. You get injured, but nothing too serious.

At that moment, you find out that, without doing anything other than requesting the ride, you were already covered by insurance that includes basic medical expenses and even compensation for temporary disability.

The same can happen in cities like São Paulo or Mexico City, where mobility companies already offer embedded protections.

Common coverages in embedded mobility insurance include:

• Medical expenses due to accidents
• Life insurance or disability coverage
• Damage or theft of equipment (such as bikes and scooters)
• Third-party liability
• Reimbursement for trip interruptions or delays

These coverages vary depending on the country, company, and type of service used.

Benefits for users: why this matters in your daily life

1. Peace of mind without bureaucracy
   You don’t need to fill out long forms or purchase separate plans—the insurance is automatically included.
2. Affordable, usage-based protection
   Instead of paying for an annual insurance policy that you might never use, you’re covered exactly when you’re on the move, with a fairer cost.
3. Increased trust in the service
   Knowing you’re protected boosts your confidence in using mobility solutions, encouraging broader and more frequent adoption.
4. Faster problem resolution
   In many cases, claims can be handled directly through the app, in a 100% digital, simple, and stress-free way.

And for companies, what’s the advantage?

Mobility companies also benefit from offering embedded insurance—especially with the added perception of safety and responsibility, which increases customer loyalty and reduces legal risks.

Additionally, they can use incident data to improve operations and offer more personalized plans in the future.

According to a McKinsey study, consumers are up to 4 times more likely to complete a purchase when insurance is embedded in the product or service.

Challenges and what still needs improvement

• Lack of transparency: many users don’t even know they are insured, which can cause frustration when trying to make a claim and must be clearly communicated.
• Limited coverage: some embedded insurance policies offer only basic protection, which may not be enough in more serious or specific situations.
• Regulatory differences: legislation varies from country to country, making it harder to standardize services for international brands.

The future of mobility is safe — literally

Embedded insurance represents an important evolution in how we protect ourselves during daily activities.

In an increasingly digital, dynamic world driven by on-demand experiences, it makes total sense for protection to come included in the package.

Whether you’re a professional who relies on apps to get around, a student who uses shared bikes, or someone exploring new ways to beat traffic, embedded insurance is a silent — yet powerful — ally on your journey.

Written by

Gabriel Gonçalves