Lyft and Uber Insurance: Rideshare Requirements & Policy in Ontario

Updated 2019 – Lyft & Uber driver insurance can be a confusing process. Most rideshare drivers assume companies like Uber or Lyft have an insurance policy in place that covers them. They may also think that their own car insurance company will back them up. 

When companies like Uber first launched in Toronto, the legal landscape was questionable to say the least. Especially when it came to rideshare insurance coverage. In fact, before a change introduced by the government in 2016, Uber refused to release their policy. They also did not have proper insurance coverage regulated by the province of Ontario.  

In 2016 new insurance products were introduced in Ontario to offer “fleet” coverage for rideshare companies. This means that drivers working with a rideshare company with an approved policy are covered. Coverage starts from the moment the app is turned on to the moment the passenger exits the vehicle. 

Lyft & Uber Insurance Requirements

Though each rideshare company like Uber and Lyft have their own “fleet” policies for drivers, you will need to have a personal insurance policy as well. This is a requirement for both Uber and Lyft as a driver. 

You should call your insurance company before driving for a rideshare company to find out if you have coverage. It is requirement for you to disclose changes of use to your vehicle to your insurer. 

Some companies do not allow drivers to offer rideshare services and some companies will permit it but charge an extra fee. 

If you rent, lease or finance your vehicle, you should review the terms of the agreement as well or give the company a call to confirm you are permitted to offer rideshare services. 

Rideshare Insurance Risks

There are risks of not telling your insurance company about offering rideshare services. At the worst they could cancel and choose not to renew your insurance policy. Also, it could be considered a material representation and you may not be covered in the event of an accident. This could be true even if you are not driving for Uber or Lyft and get into an accident on your private time. In this case, the company could say that your failure to disclose the new use of your vehicle for ridesharing increased the risk factor (for which they would like to charge you more) and therefore a claim could be denied. 

In this case, the company could say that your failure to disclose the new use of your vehicle for ridesharing increased the risk factor (for which they would like to charge you more) and therefore a claim could be denied. 

If you get pulled over by police, you will have to present your personal auto insurance policy as well as the rideshare insurance policy. You must have a physical copy of your “pink” slip proving your personal car insurance is in place but an electronic copy of the rideshare insurance policy is permitted. 

How to Get the Best Lyft & Uber Car Insurance Policy in Ontario

Whether you driving for Lyft, Uber or another rideshare company, you want to find the best deal possible for rideshare insurance. That means you need to shop around. So how can you get the best rate on your car insurance?

Loyalty

Many insurance companies offer discounts to clients who stick with them. Ask new insurers or your broker about loyalty programs when getting quotes for a new policy. Also check with your current insurer to see they offer loyalty discounts. Ask when they are applied and how much they will reduce your rates. 

These discounts can end up saving you a lot of money in the long run and you want to know before signing up with a new provider you will be rewarded for your loyalty. 

Discounts

When looking at a new policy, make sure you check to see how much of a rate discount you get when adding products like a second car or a home policy. There are the obvious discounts like avoiding accidents, being claim free and not getting speeding tickets but you can also get reductions for lots of other things such as winter tires, automated braking and more. Not all companies offer the same discounts or reduce rates for everything, so be sure to search for all the possible discounts with each insurance provider. 

Brokers and Trust

Many people simply call up the few companies they know from name recognition to get a quote. Or, they call their existing insurer to inquire about insurance for driving for a rideshare company. 

Brokers can provide value to car owners by searching for the best deal possible from a wide range of insurers, some of which that you might not be familiar with. They cut out the leg work of you having to seek out all the competitors in the market. 

If you are more of a DIY type of person, you could also try a rate comparison tool online to see how the companies stack up.

What you want to get from a broker or an insurer is trust. You need to be able to get honest, clear answers. If you don’t get clear answers when you ask an insurer or broker questions about Uber or Lyft insurance, it is time to start looking elsewhere.

Lyft Insurance Policy

In December 2017, US rideshare company Lyft entered the Canadian market to compete with Uber. First launching in Toronto, then expanding to Ottawa in the Spring of 2018, Lyft is now the biggest competitor for the rideshare pioneers at Uber.

Where can I find Lyft’s Insurance Policy?

You can find the Lyft Insurance Policy for Ontario in the Driver app: 

1. Open the sidebar in the App

2. Tap Vehicle

3. Select the vehicle you want to see the insurance for

4. Tap “Lyft Insurance” 

You can also find Lyft’s Certificate of Insurance for Ontario online. If you really want to get into the details, you can review the whole policy here. Lyft’s insurance is provided by Aviva Insurance Company of Canada. 

What’s Covered & How Does it Work?

Basically, the moment you log on to the app and are available to accept a ride, Lyft’s insurance policy kicks in. As long as you are in “online mode” the coverage is: 

• Automobile Liability: $1,000,000 per accident
• Statutory Accident Benefits
• Uninsured Automobile: $1,000,000 per accident
• Direct Compensation – Property Damage: Actual cash value or cost of repair, whichever is less (subject to your degree of responsibility)
• Contingent Comprehensive & Collision: Actual cash value or cost of repair, whichever is less ($1,000 deductible)

Once you accept a ride request through to the point you drop the passenger, the following coverage is available during this period:

• Automobile Liability: $2,000,000 per accident
• Statutory Accident Benefits
• Uninsured Automobile: $2,000,000 per accident
• Direct Compensation – Property Damage: Actual cash value or cost of repair, whichever is less (subject to your degree of responsibility)
• Contingent Comprehensive & Collision: Actual cash value or cost of repair, whichever is less ($1,000 deductible)

Once you decide to go offline or close the app you revert back to your own policy. So let’s say you are done driving for the night and want to go home If get into an accident, Uber & Lyft policies do not protect you. You will need to contact your own insurance company.

Uber Insurance Policy

Uber blazed the trail worldwide to make ridesharing what it is today. After breaking ground in Toronto, the province and insurers had to play catch up to regulate and provide Uber drivers an insurance policy for this new model of transportation. 

Where can I find the Uber insurance policy for Ontario?

You can find a copy of the Uber insurance policy and certificate of insurance for Ontario online as well as in the Uber driver app. When you open your app:

1. Click on Account icon at the bottom right

2. Scroll down and select Insurance to find the policy. 

Uber’s Insurance is provided by Intact Insurance Company. 

What’s Covered and How Does it Work?

Uber’s Insurance policy, like Lyft’s, works in essentially two stages, which can be thought of as Online mode and Driving mode. Once you log into the app and go online, you will initiate coverage of the Uber insurance policy. This coverage kicks in when you are online, waiting and available for a trip request. It provide for:

• Third Party Liability: $1,000,000
• Statutory Accident Benefits
• Uninsured Automobile: $1,000,000 
• Direct Compensation – Property Damage Coverage (pays for repairs to a driver’s vehicle, as well as related expenses, in the event of an accident that is not entirely the driver’s fault)
• Contingent Collision and Comprehensive (covers loss or physical damage to the rideshare driver’s vehicle up to the actual cash value of the vehicle with a $1,000 deductible.

Once you accept a trip request, the second phase of insurance kicks in. The second phase remains in place until you drop your rider off.

This covers:

• Third Party Liability: $2,000,000
• Statutory Accident Benefits
• Uninsured Automobile: $2,000,000 
• Direct Compensation – Property Damage Coverage (pays for repairs to a driver’s vehicle, as well as related expenses, in the event of an accident that is not entirely the driver’s fault)
• Contingent Collision and Comprehensive (covers loss or physical damage to the rideshare driver’s vehicle up to the actual cash value of the vehicle with a $1,000 deductible.

Remember that once you go offline, log off or close the app, your own insurance policy applies and the commercial Uber insurance policy does not provide any coverage to you. 

Uber Eats Insurance Requirements

Unfortunately, if you are only an Uber Eats driver there is no coverage through the Uber insurance policy. However, the company does maintain that if you are signed up with a passenger delivery service like UberX, you will be covered under their commercial policy even if you are doing a delivery. 

What do you do if you get into a car accident as an Uber Driver?

If you get into an accident as an Uber Driver, you can create a support ticket.

In the Uber Driver Partner App just go to:
1. Account in the bottom right hand corner
2. Tap on Help
3. Select Trip Issues and Refunds
4. Select the Trip
5. Scroll down and select Help
6. Select the first option “I was in an accident” and fill out the details. 

If you weren’t on a trip but online when you got into an accident, your best bet is to click on the blue phone icon in the top right corner. This will call the phone number for Uber customer support and you can get further instructions. If you damaged your phone or want to call from a different line, the direct phone number of Uber Driver customer support is 1-800-593-7069.

You can also contact Uber’s insurer Intact Insurance Company directly by calling their dedicated phone number for for Uber claims at 1-866-470-2335.

If you are an Uber Eats driver only, you will contact your own insurance company as Uber’s insurance company does not provide any coverage for you. 

Remember, if you are doing a delivery and get into in accident, you will not be covered if you didn’t inform your insurer about the new business use of your vehicle. 

Lyft vs Uber: Insurance

As you can see, the insurance policies are basically identical between the Uber and the Lyft insurance policy for drivers. Both policies offer two phases of insurance, with the main difference being increasing the liability and uninsured coverage limit to $2 million once you are in “Trip Mode”. 

Another commonality between the policies is that in order to qualify for the Contingent Collision and Comprehensive coverage you must also have this coverage on your own personal policy. 

What remains to be seen as time progresses is how Uber and Lyft deal with their drivers making claims and how the different insurance companies respond. We may see an emerging winner in the Lyft vs Uber battle, especially in Toronto, within the coming years. 

Have you had an accident as an Uber or Lyft driver? Comment below with you experience dealing with the insurance company.

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