Uber and Insurance: what you need to know
Sep 1, 2016 1 minute read
What is Uber?
Founded in 2009, Uber is one of the fastest growing companies of all time, a leader in the ridesharing industry and one of the largest organizations in the ‘sharing economy.’
With Uber, car owners can use their personal vehicle to provide rides to passengers to generate extra income with a flexible work schedule. Uber pre-screens applications from drivers to ensure a safe and affordable ride for their users. Additionally, payments are handled within the Uber mobile app through pre-authorized credit card information resulting in a secure and hassle-free payment method.
Insurance for Uber
From an insurance industry standpoint, historically there was no coverage available through a personal insurance policy to protect drivers and passengers utilizing a personal vehicle for compensation. Drivers wanting to carry a passenger for compensation were deemed a taxi and therefore needed additional coverage and a commercial insurance policy to be rated as a commercial risk. Commercial premiums for taxis are based on full time commercial use, whereas over 50% of Uber drivers work 15 hours or less in a week.
Personal insurance coverage for Uber was recently approved by the Superintendent of Insurance in both Alberta and Ontario. With this, some of the insurers we represent are now able to offer ridesharing insurance policies specifically designed for things like Uber.
Most ridesharing insurance policies offer:
- $2M in Third Party Liability coverage
- Standard Accident Benefits
- And a $1,000 deductible for both comprehensive and collision coverage.
What does this mean if you are an Uber passenger?
This new personal insurance coverage designed especially for Uber drivers and passengers means that both parties will be better protected in the event of an incident.
Do you plan on driving for Uber?
If you are planning on becoming a driver for Uber or another ridesharing service, you should contact your BrokerLink broker to advise them that you wish to participate in Uber, prior to beginning to offer the service.
It is important to understand that all Uber products fall under this insurance coverage. If you are an UberX, UberXL, Uber Select, UberHop or UberPool user, you will be covered when you update your insurance policy, as long as you are insured with a participating insurance company.
As ridesharing and the sharing economy grows and evolves, it is important to make sure you have adequate insurance protection. Click here to find a BrokerLink broker nearest to you and discuss your coverage options.