Rideshare Insurance

Your Guide to Understanding Rideshare Insurance in Alberta and Ontario


The summer of 2016 has been good for Uber in Alberta and Ontario. First in Alberta, the Superintendent of Insurance of Alberta approved a new ridesharing insurance policy. It's a commercial insurance policy purchased by Uber, that came into effect on July 1.

No long after, the province of Ontario basically did the same. The Superintendent of the Financial Services Commission of Ontario (FSCO) approved a commercial auto insurance policy that covers all Uber drivers and passengers. According to an Uber statement on the day the policy was approved, "As of July 7, 2016, Uber will be purchasing this new ridesharing insurance covering all ridesharing rides in Ontario."

What's this mean for Uber passengers?

From a passenger standpoint, both of these announcements mean that from the time you enter the vehicle, until the time you arrive at your destination and leave the vehicle, it's Uber's commercial insurance policy that will cover you should something happen during the ride.

What's this mean for Uber drivers?

In Ontario, the Uber commercial insurance policy kicks in when the driver logs into the Uber app. It offers coverage from the time the driver logs into the app, accepts a trip, picks up the passenger and drops off the passenger at their destination.

It's a little different in Alberta. In Alberta, the Uber commercial policy kicks in when the driver accepts a ride and offers coverage through to when the passenger is delivered to their destination. But which policy applies when, as a driver, you are logged into the Uber app and waiting for a trip? Basically, Uber's commercial insurer will provide coverage but only when your personal auto insurer says they won't.

What's included in Uber's commercial insurance policy?

Uber's commercial insurance policy has two different sets of coverage levels. The first set applies when the driver is logged into the app waiting for a ride up until the time when the driver accepts a trip. During this time, the commercial insurance policy provides the following initial coverages:

  • $1 million third party liability
  • Standard Accident Benefits
  • Comprehensive and collision coverage with a $1,000 deductible. This is only available to Ontario Uber drivers and only if these optional coverages are in the driver's personal policy.

Once the Uber driver has accepted a trip, and is in transit to pick up the passenger, the coverages change to the following and stays at these levels until the passenger arrives at their destination and leaves the vehicle:

  • $2 million third party liability
  • Standard Accident Benefits
  • Comprehensive and collision coverage with a $1,000 deductible. (In Ontario, this is only available if these optional coverages are in the driver's personal policy as well.)

Uber drivers must still let their personal auto insurance provider know they drive for Uber

What hasn't changed for Uber drivers-whether in Alberta or Ontario-is that they still must let their personal auto insurance provider know that they're driving for Uber to ensure they've got the coverage they need for times when they are not. This is important, because the fact is, that regardless of Uber's commercial insurance policy, insurers are not required to insure ridesharing vehicles and may cancel your policy or decide not to renew it if you're driving for Uber on the side.

If your personal auto insurer does not want to insure your vehicle because you drive for Uber, you'll need to shop around for one that does. At Kanetix.ca, we can help you find the coverage you need, because no one else covers as much of the market as we do, and we make it quicker and easier for you to get quotes and your coverage from the top providers all in one place.

Shop around for an auto insurance policy that allows ridesharing, compare auto insurance quotes today.

To see the details of Uber's Alberta ridesharing policy coverages, click here. For Uber's Ontario policy details, click here.