Toll Free: 1.877.225.0446

Under Toronto City Council’s proposed recommendations, private transportation companies would need $7 million of insurance

Currently in Toronto, only taxicabs and limousines are required to carry a minimum of $2 million of collision and passenger hazard insurance. This may soon change with the Toronto City Council pushing recommendations that would require private transportation companies to carry a minimum of $2 million of collision and passenger hazard insurance, in addition to $5 million of commercial general liability insurance.

Under the new recommendations, taxis will continue to charge a city-regulated rate when a cab is hailed. Fares booked through a brokerage, either by phone or app, may be discounted by the brokerage. The recommendations also eliminate the minimum $70 per hour fare requirement for limos. Both Limos and private transportation companies would be subject to submitting an annual safety standards certificate issued by a licensed mechanic. Private transportation companies would not be licensed by the city but they must meet the same criminal background and driver screening requirements as vehicle-for-hire drivers, with records subject to audit by the city.

The proposed recommendations outlined in a report titled, A New Vehicle-For-Hire Bylaw to Regulate Toronto’s Ground Transportation Industry, are meant to provide ground transportation industries with an opportunity to develop efficiencies, allow for competition and reduce the regulatory burden.