Uber Vehicle Insurance

Uber is a famous ride-sharing service in Canada. However, it is only available in Alberta, Ontario, Quebec, Nova Scotia, New Brunswick, British Columbia, Saskatchewan, Manitoba, Newfoundland & Labrador, and others have added insurance that comes into effect when the app is turned on until the ride is complete and the passenger exits from the vehicle.

Uber Vehicle Insurance

Thousands of Canadians have signed on to become Uber drivers, whether to work part-time or full-time. It’s excellent, and all, but one question remains, are Uber drivers, their cars, and their passengers are covered?

What is Uber?

Uber is a ride-sharing service that competes with taxis and black car services. Working with Uber is very easy, all you need is the Uber app on your smartphone.

The app pairs you with a driver near you who works for Uber and has been verified and rated. Riders can pay through the app, making the transaction easy and quick. Uber runs various services such as:

1. UberX:
   It is the least expensive service Uber offers, which is very popular. Even smaller vehicles, such as a Honda Accord or Civic, Toyota Prius, can work in this service. They can take up to 4 passengers per ride. Also, the vehicles in this service must be a 2001 model or newer one.
2. UberXL:
   Usually, SUVs work for this service, and up to 6 passengers can go to the custom destination per ride.
3. Uber Select:
   Uber Select is a luxury car service. Up to 4 people can sit in a car, and cars are BMWs, Mercedes, and other luxury vehicles.
4. UberHop:
   In this ride, you share trips with other users along popular routes during peak times.
5. UberPool:
   Allows you to rideshare with other people to share the trip’s costs.
6. Uber Eats:
   Uber Eats is an online food ordering and delivery on iOS or Android platforms. Users can read menus, reviews, and ratings, order and pay for food from participating restaurants using an application or a web browser. Users are also able to tip for delivery.

How does Uber insurance work in Ontario?

First thing you should know, Uber insurance is an additional policy, and every driver still is required to have personal auto insurance. Uber insurance protects drivers when they open the Uber App and signal that they are ready to accept a ride. Uber insurance works in 4 phases:

• Phase 0: In this phase, the driver is offline. In such times, drivers use their personal insurance.
• Phase 1: The driver is logged into the app and is available to accept rides. Uber insurance protects the driver.
• Phase 2: The driver accepts the ride request and is on the way to pick up a passenger. Uber insurance protects the driver.
• Phase 3: Driver is transporting passenger(s) to their destination. Uber insurance protects the driver and the passenger(s).

When drivers sign off, their personal auto insurance policy protects the driver and the vehicle while using the car for personal matters.
Note: Uber’s policy only protects the driver when the car is being used as an Uber taxi. Drivers have to have their auto insurance policies in addition to this Uber coverage.

What’s covered under the Uber policy in Ontario?

It may be interesting to know that the insurance that Uber maintains for the drivers is provided by Economical Insurance in Ontario.

Uber covers the accident that happens between accepting delivery and reaching the delivery destination:

• Liability coverage:

Your liability to third parties is covered from the second you accept delivery until you reach the destination, up to $2 million.

• Uninsured/Underinsured motorist coverage:

The injuries resulted from a hit-and-run, an uninsured driver, or a driver without sufficient insurance Uber covers you up to $2 million.

• Contingent collision and comprehensive coverage:

This coverage only applies when you have collision and comprehensive coverage on your policy. The loss or physical damage to your vehicle up to the car’s actual cash value is covered with a $1,000 deductible.

Statutory Ontario Accident Benefits

Uber drivers are even covered when they are available online and ready to accept a ride through the Uber app, yet no delivery request is accepted.

In such cases, drivers are covered up to $1 million of third-party liability coverage, uninsured/underinsured motorist coverage, and contingent collision and comprehensive coverage.

Do I need to tell my insurer I drive for Uber?

Yes, you are actually required to inform your insurance provider that you want to work for Uber before you sign up to be an Uber driver. Section 1.8.1 of the Ontario Personal Automobile Policy Act clearly states in a clause that your policy is not valid if you use your vehicle for hire.

Some insurance companies may not offer insurance for Uber drivers, so it’d be best to double-check with your provider before you sign up.