Ride Sharing Insurance Hits Ontario

Person with smartphone requesting Uber

Uber passengers are going to start being covered by a new insurance plan starting this July. This new policy aims to cover ridesharing drivers and passengers in Uber cars within Ontario. It’s been setup by Intact Insurance and is covered by the commercial insurance policy purchased by Uber. As soon as a driver accepts a ride request, the insurance is active. It only ends when the passenger has exited the vehicle.

This new insurance gives coverage to all Uber drivers and passengers. It includes liability insurance and standard accident benefits. Intact claim that third-party liability is included up to $2 million. Also, it gives coverage for comprehensive and collision, if the drivers have this coverage on their personal policy.

This policy makes Ontario the second province make specific insurance policies for ride-sharing. The FSCO believe that this helps to address a massive gap in the industry. Before this, paying passengers weren’t covered by any insurance policies. So, if they got into an accident, they couldn’t claim for insurance benefits. However, when this insurance is in place, they can rest a little easier. Many people believe this is a great solution to stop the concerns that surround ride-sharing.

It’s interesting to note that the policy covers all Uber drivers and passengers, only when the app is being used. If the app is turned off, then the only insurance policy in use is the vehicle owners. So, someone can’t get a lift with their friend, who’s an Uber driver, and claim under Ridesharing Insurance. It’s only active when the Uber app is in use, and a customer is paying for the ride.

Insurance experts believe that this is the start of something big. Soon, more insurers will copy this policy. Ridesharing is a huge market in the auto industry, with Uber drivers popping up in more and more cities. It makes sense to assume that Ridesharing Insurance will soon be a common thing throughout Canada.

This new policy has been met with mixed feelings from people in Canada. Lots of taxi drivers are less than impressed with it. They believe it’s a bogus announcement that won’t make a whole lot of difference. Since its inception, Uber has been met with harsh criticisms from taxi drivers for stealing their customers. The company bought this commercial policy from Intact, and every driver is covered automatically.

Intact Insurance backs this up and say that the policy was bought by the company. This means that it doesn’t matter who is driving the car. If it’s an Uber car, then the ride is covered by the policy. In addition to this, any Uber drivers need personal auto insurance from a provider. This new Ridesharing Insurance will act alongside this. The primary aim of the new policy is to cover both driver’s and passengers for the first time. It should mean passengers can feel safer and more comfortable when paying for an Uber ride. Also, passengers don’t have to do anything to get covered by the insurance. It automatically applies to them when they pay for the ride.