Insurance For Uber Drivers – Are You Covered?

Car driving down road lined with trees

Uber is a well-known ride sharing service that in many Canadian cities competes with taxi companies and black car services. Thousands of Canadians have signed on to become Uber drivers, whether they are looking for a way to supplement their income or for full-time employment. One question that we frequently receive from individuals considering working for Uber is if their personal car insurance will cover them. Below, we will discuss what you need to know about insurance for Uber drivers.

Does My Car Insurance Cover My Uber Business?

Before signing on as an Uber driver, it is essential to thoroughly review your personal insurance policy. Some policies contain lists of exclusions, which often includes what is called ‘driving for hire.’.

Why Do I Need Insurance for My Uber? What Are the Laws Around This?

If you are an Uber driver, your vehicle is more than just a means to get around, it is also your livelihood. As you are driving more than the average individual, you most likely cover higher mileage than what is covered on most standard insurance policies. Driving late at night or in high traffic areas also poses a higher risk of being involved in an accident.

Finding the right coverage to protect yourself is essential. As of July 1st, 2016, the Superintendent of Insurance Alberta approved a ridesharing insurance policy to protect both Uber drivers and passengers.

The policy, purchased by Uber does provide certain areas of coverage, including:

  • Alberta statutory accident benefits
  • Third party liability coverage of $2 million dollars per incident which covers an Uber driver while completing a trip
  • Loss or damage to a vehicle while a driver is completing a trip
  • Uninsured motorist coverage for if another motorist causes an accident and either cannot be identified or does not carry insurance

Under this policy, if you are available to take passengers but are in between trips, the coverage is reduced to $1 million in third party liability.

What Are the Laws Around This Coverage?

It is important to understand that if you are driving your vehicle for personal use and not logged in to accept rideshare requests from customers, that the Uber insurance policy does not apply. Under these circumstances, your personal policy would apply and the coverage limits based on your personal policy. For this reason, it is recommended that you review your insurance policy details and ensure that you have the proper coverage.

How Much Does It Cost To Add Uber Insurance?

A number of factors are considered in determining what your vehicle insurance premium will be, including driving record, age, previous coverage and the fact that you will be considered a commercial driver. At Bow Valley, we will competitively shop for you to get the most competitive price on the market. To find out more coverage options for Uber drivers, contact us today for an auto insurance quote and consultation.