March 1, 2017
If you are driving or thinking of driving for a ride-hailing company like Uber, auto insurance is one of the most important issues to understand. You want to make sure that you and your passengers are protected in case of an accident.
What is Uber?
Uber operates a technology platform that allows users to obtain and pay for on-demand transportation and logistics services provided by an independent contracted driver, through an application for use on mobile devices. Founded in 2009, it is one of the fastest growing companies in history. They have an evolving business model that initially started as a high-end livery, black car service in California, which grew to include ridesharing in 2013. Their GPS-enabled mobile application allows passengers to organize pre-arranged trips with independent contractors who act as ridesharing drivers. Car owners can use their vehicle to make some extra income with a flexible work schedule.
How does Uber’s insurance coverage work in Ontario?
Intact Insurance, Novex and Jevco have modified their underwriting guidelines to allow for ridesharing on their personal auto insurance policies at no additional cost. Drivers participating in ridesharing must inform their Broker or agent, who should then advise the personal auto insurer of the customer to ensure they are properly protected for non-ridesharing use of the vehicle.
Uber has a primary commercial insurance policy with Intact Insurance that provides coverage to all vehicles, drivers and passengers from the moment drivers make themselves available to accept a ride request, to the moment passengers exit the vehicle.
What should drivers do next?
All Uber drivers must contact their broker or insurance provider to advise that they are participating in ridesharing activity.
If you are an Uber driver or are considering becoming one, talk to your broker or insurance provider directly, to learn more.