Is Uber Insurance Enough for Everyone?

Adam Mitchell

Leading Ontario Insurance Broker Mitchell & Whale cautions the answer is not so clear.

Whitby Ontario – Dec 1, 2015 – uberX provides everyday cars for everyday use. Prices are reasonable, the vehicles are available and driven by well-meaning people looking to make a few dollars extra from their vehicles. But before you sign up to become an uberX driver consider the insurance implications. Do you have to inform your insurance broker that you are using your vehicle to transport paying customers?

Will your standard automotive insurance policy cover you? Will Uber’s insurance cover you? Is there additional insurance you can purchase to have full coverage? Whose insurance covers your passenger if there is an injury? These questions and others were recently reviewed by Adam Mitchell, President of Mitchell & Whale Insurance Brokers Ltd. based in Whitby, Ontario. The answers to these questions will generate concerns.

A driver who is currently an uberX driver or is considering to become one, must inform his insurance broker of the intended use of the vehicle. In Ontario, there are no insurance policies specifically for uberX drivers aside from a Facility Taxi Policy, which can cost $10k plus per year. The 6A category, for car pooling endorsements does not apply,” said Adam Mitchell. “A policy could become void and coverage denied if an accident occurs. It is important to get the facts to avoid the risk of not being covered. “

All insurance brokers should ask clients when reviewing an application “Is this vehicle being used to carry passengers for compensation?” Not answering truthfully can void a policy.

It is important to note that insurance companies are currently in the process of developing products for uberX drivers in Ontario although none as of November 2015 has been put in place.

To fully understand the implications of a real insurance gap in Ontario, 6 scenarios must be considered:

  1. The driver is injured in a collision when they are not working for uberX but driving their car for personal use
  2. The driver is injured in a collision when they are driving to pick up an uberX customer.
  3. The driver is injured in a collision, when they are driving with an uberX customer in their car
  4. The uberX passenger is injured in a collision, but has auto benefits of their own.
  5. The uberX passenger is injured in a collision, and has no auto benefits of their own.
  6. The uberX passenger is a casualty after a collision.

Your insurance broker is best placed to discuss these scenarios with you, to monitor industry developments and protect your interests whether you are an uberX driver or passenger. It is critically important to be fully aware of insurance gaps, risks and limits.

About Mitchell & Whale

Mitchell & Whale Insurance Brokers is a family-run business since 1948. As Insurance Brokers based in Whitby, the company is licensed throughout Ontario and works with clients from Oshawa, Whitby, Ajax, Pickering, Toronto, GTA and beyond across Ontario!

Company Contact: Adam Mitchell| President, Mitchell & Whale Inc., Office @ 1-800-731-2228 x 101, Direct Phone | Fax | Text @ 905 443 0284, amitchell@mitchellwhale.com

 

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