[thrwwyh]

Lyft is attempting to get around the limits on commercial activity by only reimbursing up to the driver's costs (see the TOS section on Reimbursements). But the terms you describe would seem to preclude even this. Do you mind saying which insurance company has those terms?

As to the question of incentives, I have pay-by-the-mile car insurance (from MetroMile, in SF). They would make more money if I took a detour and drove a little further, or if this service caused me to drive to work more frequently.