Should You Get Extra Insurance If You Drive for Uber?
With many a battle behind it and no doubt still more to come, Uber has made headlines all over Canada.
Despite city bylaws that make the services the “transportation network company” offers illegal, Uber has continued to grow at a rapid pace. The company now employs a network of more than hundreds of thousands of “driver partners” willing to give you a ride for money. Many people want to drive for Uber as a side gig, and that is raising a number of questions across Canada.
This has basically turned Uber into the living embodiment of chaotic evil in the eyes of many Canadian taxi drivers. They’ve fought tooth and nail for cities to enforce bans on Uber. Unfortunately for them, most governments aren’t listening. Instead, many local governments are working to integrate new bylaws to make Uber a legal and regulated service, similar to the situation in Edmonton.
If you have a car and are considering joining UberX, you may have heard that personal car insurance won’t cover you in the event you get into trouble while offering an Uber ride. Here’s what you should consider if you drive for Uber:
Do you live in Ontario?
If you do, then you’re in luck. You live in the only province that actually has approved ride-sharing insurance.
That means if you ride-share, you should probably get the appropriate insurance, even though there are no bylaws legalizing Uber in the province yet. Ride-share insurance has some limitations and there are stipulations on who can apply. Only drivers who drive for Uber 20 hours or less per week are eligible for the insurance. Other than that it should be a simple add-on to your personal car insurance policy provided you are insured through Aviva. As of right now, Aviva is the only company offering a solution, though that will undoubtedly change.
Can't get the Ride-sharing Insurance?
What if you don’t live in Ontario? Perhaps you drive for Uber full-time. Maybe you just don’t want to switch to Aviva. You can still get insured, but it’s not cheap. Commercial auto insurance can be purchased to provide personalized coverage for your small business needs. Unlike personal auto insurance, commercial policies are often designed for the specific policyholder. A commercial policy is significantly more expensive than a personal policy. This means it is unlikely that you or any other UberX driver is going to opt for that coverage.
What about Uber’s Insurance?
Uber says it has all of its drivers covered with up to $5,000,000 of contingent insurance for third party bodily injury and property damage should your personal auto insurance not apply in the event of an accident.
However, this insurance isn’t government approved. This poses a major problem for drivers, even if they feel confident enough that they can rely on the Uber coverage. Keep in mind that it’s only for third party liability. If you injure yourself as you drive for Uber and your auto insurance company decides your coverage doesn’t apply (which they probably will), then there’s a very real risk of you being left on your own for medical bills and repair costs for your own vehicle.
Should you get extra insurance if you drive for Uber? If you value your life and your vehicle, the answer is yes. And if you for some reason can’t get the right coverage, maybe you shouldn’t be driving for Uber.