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Monthly Archives: January 2016

Ride-Sharing Is Here To Stay, But What Are The Insurance Implications For Drivers?

The world of ride-sharing is transforming Canada’s auto-insurance industry. With about 20,000 UberX drivers in Toronto alone, ride-sharing is considered to be the future and some auto-insurance providers are beginning to work on policies catered to this service.

Toronto-based Aviva is the first insurer to roll out ride-sharing policies according to the Insurance Bureau of Canada. The coverage is an addition to a personal policy and covers ride sharing-drivers for up to 20 hours per week. This coverage is expected to start in early February with permission from the Financial Service Commission of Ontario, for sale in that province.

Ride-sharing drivers need to be mindful of the fact that regular auto insurance policies will not cover them. The standard auto insurance does not cover drivers who are carrying paying passengers. Some insurance companies are beginning to ask policyholders if they are using their personal vehicles for Uber. Policyholders who are ride-sharing drivers may have their personal auto insurance policy cancelled.

Ride-sharing passengers also need to be mindful of what insurance their drivers carry. Passengers would be well advised to ask what kind of insurance the driver has and whether it covers ride-sharing.

For more information on ride-sharing and how it may affect you, check in with your broker or company agent.