Why do Uber and other ride sharing drivers need extra insurance?
Unfortunately, while Uber and Lyft provide insurance for their drivers, their coverage doesn’t protect you in many cases. Additionally, your personal car insurance policy won’t cover you if you use your car for commercial or for-profit purposes without informing your insurance company.
On LowestRates.ca, we connect you with companies offering ride sharing coverage across Canada.
How can I get ride sharing insurance on LowestRates.ca?
LowestRates.ca connects you with car insurance companies that will cover you if you use your vehicle for ride sharing. All you have to do is fill in your name and contact information and one of our trusted broker partners will find you the right ride sharing insurance coverage and help you set up your policy.
The coverage we can secure for you is not the same as the commercial auto insurance policy that will be provided through Uber or Lyft. We will connect you with insurance companies willing to include ride sharing in your personal auto insurance policy or permit you to ride share under that policy.
Are ride sharing insurance plans available across Canada?
Ride sharing coverage is currently available in Ontario, Quebec, Alberta, British Columbia and Atlantic Canada (N.B., N.L., N.S., P.E.I.) — the provinces where Uber and other ride share services have been legalized.
Check back to find out when your area is getting ride sharing insurance.
Why do I need personal car insurance and Uber/Lyft insurance?
Uber and Lyft provide some car insurance on their drivers’ behalf. Uber and Lyft insurance policies only kick in when the app is turned on and are designed to deal with liability claims. The bottom line is, these policies may leave you on the hook for any damage incurred to your vehicle.
More importantly, if you fail to inform your car insurance provider, your personal auto insurance could be voided.
How much does ride sharing insurance cost?
Each insurance company will treat ride sharing differently, which is why it’s difficult to say what the impact on your premiums will be.
In addition to factors like your driving record, where you live and how frequently you drive, your insurer will also have to take into account how much time you spend per week ride sharing and where you’ll primarily be sharing rides.
While coverage provided by Uber and Lyft has improved, it is best to talk to your insurance broker to ensure you and your vehicle are properly insured.
Regardless of what you need, at LowestRates.ca finding a cheap ride sharing insurance policy in Canada is quick and easy.
What factors affect my ride sharing insurance premiums?
While the answer varies for everyone, your premiums depend on a variety of factors including age, your location, the type of car you drive and your driving record. If you choose to add coverage to your insurance policy to cover your ride sharing activity, that may also increase your rates.
First, figure out exactly how you’re covered by your personal auto insurance and by the ride sharing company you’re planning to drive for before you invest in additional insurance.
Are all drivers eligible for ride sharing insurance?
No. To be eligible for the ride sharing insurance our insurance partners offer, drivers must meet several key tests. Some of these include:
- You must hold a valid Canadian or U.S. driver's license for at least 6 years.
- For some providers you can't use your vehicle for ride sharing for more than the maximum number of hours outlined in your policy.
- You can't use your vehicle for other commercial purposes (deliveries, transporting finished goods, towing, etc.).
- Only the drivers listed on the ride sharing policy can transport passengers for pay.
- Some policies only allow 2 rideshare vehicles per household.
Does my ride sharing coverage affect my personal coverage?
In most cases, yes. Ride sharing insurance packages, if you choose to add them, offered by our partners are separate add-ons or 'endorsements' attached to your standard car insurance policy. These add-ons extend your car insurance coverage so that it applies even insurance provided by Uber or Lyft does not. Including these add-ons in your policy will not change your personal coverage, though it will typically increase your premium.
Here’s what your personal coverage includes:
- Third-party liability: If you're responsible for an accident, third-party liability covers damages, injuries, and losses sustained by other drivers and passengers.
- Direct compensation property damage (DCPD): With DCPD coverage, your insurer covers damages to your vehicle even when the other driver is at fault.
- Uninsured or unidentified automobile coverage: If you're in an accident with an uninsured or unidentified driver, this coverage pays for you and your passenger's injuries, as well as your vehicle repairs.
- Accident benefits: This type of coverage helps pay for you and your passenger's injuries no matter who's at fault.
In some cases, however, your Uber or Lyft insurance policy may be expanded if you’re already paying for collision and comprehensive coverages on your personal policy.
Read on to learn more about how your personal policy can impact the coverage Uber or Lyft will give you if you get into an accident while working. We’ll also discuss when you’re covered under your personal policy and when Uber or Lyft insurance will kick in to protect you.
Does my car insurance policy include Uber insurance or Lyft insurance?
The short answer is no. However, If you’re an Uber driver you must let your personal auto insurance provider know that you’re working for a ride sharing company in your spare time to ensure you have the coverage you need when you are using your vehicle for personal use. The same applies to Lyft drivers and drivers of other ride sharing platforms.
Will becoming an Uber or Lyft driver affect my personal auto insurance policy?
Becoming an Uber or Lyft driver doesn’t automatically mean your personal premiums will be affected. It depends on where you get your insurance so contact your provider for more information. The extra premiums, if they happen, are still going to be cheaper than if something happens and you’re not covered.
Are Uber insurance policies and Lyft insurance policies the same?
Both companies provide coverage when you’re working as a driver but you’ll need to maintain your personal car insurance on top of what you’re getting from Lyft or Uber to be protected at all times.
What ride sharing insurance coverage does Uber offer?
If you drive for Uber, you are automatically covered by Uber’s blanket fleet coverage through its commercial Intact Insurance policy.The coverage is broken down as follows:
- Phase 0: using vehicle for personal use.
- Phase 1: driver available to accept a trip.
- Phase 2: driver en route to collect passengers.
- Phase 3: driver transporting passenger to destination.
How does Uber insurance work in in Ontario?
- Personal coverage: In effect until you log into the Uber app. You must maintain collision and comprehensive coverage on your personal auto insurance policy to be eligible for collision and comprehensive coverage under Uber insurance.
- Third party liability: This coverage kicks in during Phase 1. It includes $1 million of liability coverage while you’re logged into the app and waiting to accept a trip.
- In Phase 2, once you’ve accepted a trip and you’re driving towards your customer, you become eligible for $2 million in liability coverage. Phase 2 lasts from the moment you accept a trip until it ends. This coverage also extends to Phase 3.
- Standard accident benefits: This coverage also kicks in in Phase 1, when you’re logged on and available to accept a trip. It includes commercial auto insurance maintained on your behalf during the time that you are available through the Uber app but have not yet accepted a trip.
- Collision and comprehensive: This is the final form of insurance coverage you’re eligible for when you’re waiting to accept a customer (Phase 1). It covers loss or physical damage to your vehicle up to the actual cash value of the vehicle with a $1,000 deductible. But, this coverage only applies if the vehicle is also insured for collision and comprehensive coverage on your personal auto policy.
How does Uber insurance work in Alberta?
- Personal coverage: In effect until you log onto the Uber app. You must maintain collision and comprehensive coverage on your personal auto insurance policy to be eligible for collision and comprehensive coverage under Uber insurance. Your personal coverage applies during what Uber refers to as Phase 0.
- Third party liability: This coverage kicks in in Phase 1. It includes $1 million of liability coverage while you’re logged into the app and waiting to accept a trip. In Phase 2, once you’ve accepted a trip, you become eligible for $2 million in liability coverage. This phase lasts from the moment you accept a trip until it ends (phase 2 and 3).
- Standard accident benefits: Commercial auto insurance maintained on your behalf during Phase 1, meaning the time that you are available through the Uber app but have not yet accepted a trip.
- Collision and comprehensive: In Alberta, this policy kicks in once you’ve accepted a trip and remains in effect until the trip ends. It covers loss or physical damage to your vehicle up to the actual cash value of the vehicle with a $1,000 deductible. This coverage only applies if the vehicle is also insured for collision and comprehensive coverage on your personal auto policy.
How does Uber insurance work in Saskatchewan?
- Personal coverage: Drivers do not have to make any changes to their personal insurance policies in Saskatchewan. Drivers are insured by paying for their plates through the SGI basic insurance coverage until the ride is accepted until the trip is completed or cancelled. Basic plate insurance will apply if you are responsible for an accident while ride sharing and the damages exceed $200,000.
- Third party liability: Uber pays an additional premium to Saskatchewan Government Insurance (SGI) so that you’re covered from the time you accept a ride via the Uber app until the trip is completed or the ride is cancelled (Phase 2).
- Uber’s ride sharing insurance policy provides $2 million in liability limits. Additional purchased liability insurance will apply if damages exceed $200,000 (the liability insurance included with basic plate insurance).
- You might have purchased an Auto Pak to lower your deductible, or for replacement cost coverage if you’re involved in a collision. This coverage will not apply if you’re involved in a collision while ride sharing.
How does Uber insurance work in Quebec?
- Personal coverage: In effect until Uber drivers accept a ride. From then, Uber’s commercial insurance coverage kicks in, and remains in effect until the last rider exits the vehicle.
- Third party liability: In Quebec, Uber insurance covers $1 million civil liability to third parties.
- Collision and comprehensive: Uber insures loss or physical damage to your vehicle if you have collision and comprehensive coverage on your personal auto policy.
How does Uber insurance work in British Columbia?
- Personal Coverage: Drivers in B.C. do not have to make any changes to their personal insurance policies. Drivers are insured by paying for their plates through the Insurance Corporation of British Columbia (ICBC). Personal auto insurance will apply while using your vehicle for personal use as well as driving on the Uber app prior to accepting a ride request (Phase 0 and 1).
- Third party liability: Once you’ve accepted a ride request on the Uber app and you’re en-route to pick up the passenger(s) or traveling with them (Phase 2 and 3), Uber maintains commercial auto insurance on your behalf. This coverage includes $2 million in third-party liability limits.
- Collision and comprehensive: Starting in Phase1, Uber also provides a contingent physical damage coverage, subject to a $1,000 deductible. You’re required to maintain comprehensive and collision insurance on your personal car insurance policy to be eligible for this deductible.
What ride sharing insurance does Lyft offer?
Lyft provides commercial insurance policies — at no extra cost to the drivers — through Aviva.
At this time Lyft is only available in select cities in British Columbia and Ontario.
Lyft segments their covered periods the following way:
- Period 1- Personal use: driver mode is off.
- Period 2 - Pre-acceptance: driver mode is on but a ride has not been accepted.
- Period 3 - Post-acceptance: from the point the ride request is accepted until the end of the ride.
How does your Lyft insurance work in Ontario?
- Personal coverage: When the app is off, your personal car insurance coverage is in effect.
- Third party Liability: This coverage kicks in during Period 3, after a driver has accepted a ride. During this period, liability coverage is limited to $1 million per accident. Once a driver picks up a rider, however, this amount increases to $2 million per accident.
- Accident Benefits: This policy kicks in during Period 2 and provides the accident benefits you are entitled to if you are injured in an accident, regardless of who causes it.
- Direct compensation and property damage: This policy kicks in during Period 2, and provides the actual cash value or the cost of repair of the property damaged, depending on how responsible you were for the incident.
- Comprehensive and collision coverage: This policy kicks in during Period 2 and covers the actual cash value or cost of repair of the vehicle subject to a $1,000 deductible. In order to be eligible for this policy, you must have obtained these coverages on your personal auto insurance policy.
How does Lyft insurance work in British Columbia?
- Personal coverage: Unlike in Ontario, your personal coverage is in effect in B.C. until you’ve accepted a ride request (Period 3). If you’re logged into the app but have not accepted a ride, your personal auto insurance applies. When the app is off, your personal car insurance coverage is in effect.
- Third party Liability: In B.C., Lyft does not provide commercial liability insurance until Period 3. At this point, drivers are eligible for up to $1 million in liability coverage.
- Accident benefits: Drivers are also eligible for basic accident benefits coverage beginning in Period 3.
- Collision and comprehensive coverage Beginning in Period 3, drivers are also eligible for the actual cash value or cost of repair for their vehicle, subject to a $2,500 deductible. Unlike in Ontario, this is not contingent on having these features on your personal auto insurance policy.
How do I make an insurance claim after an accident?
- In the event of a crash, coverage may come from the owner's basic policy, owner's additional coverage (if applicable), or the ride sharing companies blanket policy.
- Like any other car accident, your first step should be to call the police.
- Your next step will be to contact the ride sharing company. For Lyft, claims are handled by calling Lyft’s Critical Response line available within the app.
- To make a claim, drivers should take down all the details of the accident.
Do I need ride sharing insurance for food delivery, like Uber Eats?
If drivers use their own vehicles to deliver food, they need additional insurance.
Drivers should confirm the existing coverage the ride sharing company provides before signing up.
What if my personal car insurance provider doesn’t offer ride sharing insurance?
Not every insurance company has policies for rideshare drivers. If your provider doesn’t offer rideshare insurance, fill out our form to be connected with companies that do.
If you don’t let your insurer know that you plan on driving for a ride sharing app, they could cancel your coverage so that should still be your first step.