Ride-share Refresh – say that quickly 5 times over!
Ride-sharing (compensation for hire) is gaining in popularity which means insurance rules and regulations are constantly having to adjust and change. In Ontario, the Financial Services Commission of Ontario (FSCO) approved fleet auto insurance coverage for only 2 companies, UBER and RideCo. as of July 7th, 2016. The companies that provide the insurance to UBER and RideCo. state…”All drivers, passengers and vehicle owners in Ontario using these ridesharing companies are covered from the moment the app is turned on to the moment passengers exit the vehicle. When the app is turned off, the vehicle owner’s personal auto insurance policy applies.” While this is of some comfort, be aware the insurance offered through UBER or RideCo. may not have as much coverage as you might think.
If you are considering participating in any ride-share program here are a few points to think about before signing up:
- Inform your insurance broker or insurance company of your intent to work for a ride-share program. They may have an endorsement you can add to your personal auto insurance that would allow you to participate in the ride-share program while having the best insurance coverage possible. (See Aviva’s policy here for their ride-share coverage.)
- Review the coverages offered by the ride-share company carefully – you may find they don’t offer certain coverages or limits, or may only activate if there is sufficient coverage under the drivers’ personal insurance coverage.
- Ensure you have permission for your vehicle to be used for the program – some leasing or finance companies will not allow it.
- A ride-share insurance endorsement can only be added to a personal auto policy already in force – it is not a stand-alone policy.
If you are unsure whether your insurance provider can help pick up the phone and call your insurance broker – they will have the answers you need.