It’s a no-brainer that Uber and other rideshare services have changed the transportation industry. Apart from that, they’ve also had a considerable effect on how car-for-hire drivers get auto insurance coverage. If you are an uber driver or considering taking up a ridesharing gig, you need rideshare insurance. You’re probably asking – How much is commercial auto insurance for uber? This article reviews the depth of Canada rideshare insurance and proffers tips on how to save money on Uber insurance.
Do you want to know how much is commercial auto insurance for Uber and learn how to save money on your rates? Read on!
What is Uber?
Uber is a ridesharing or ride-hailing service that contends with taxis and black car services. Ten years ago, you would have probably gotten strange looks if you mentioned ridesharing. However, now, ridesharing is arguably as renowned as the traditional taxi. All you need is the Uber app on your smartphone. The app pairs you with a driver that has been verified and rated by Uber and other riders. With the app’s GPS feature, riders can track their ride as it nears the pickup point. Uber also gives riders the chance to pay through the app, making the transaction effortless for everyone.
Uber runs various services, such as Uber X, Uber XL, Uber Select, and Uber Eats. Uber Hop, and Uber Pool. UberX allows local uber drivers to reply to notifications on the Uber app and drive customers in their cars.
Unlike traditional taxis, almost anybody can be an UberX driver. In some states, all you need are car insurance, good health, suitable age, passing a background check, and finishing a driving test.
Although Uber has only been in existence since 2009, it has become a part of our daily lives. It is hard to specify how many uber drivers are in Canada. If you are one, it’s essential to understand your obligations regarding your auto insurance coverage.
Why do Uber Drivers need Rideshare Insurance?
Any situation that involves you driving your car for money, whether for ridesharing companies like uber and lyft or app-supported delivery service, requires rideshare insurance,
Personal auto insurance policies have a compilation of restrictions, and most times, one of them is “driving for hire”. So, your personal auto insurance policy may not cover you while driving for a ridesharing service like Uber. Therefore, if you are driving for Uber, you should confirm with your insurance company to know whether your policy covers commercial driving.
If it doesn’t, you will have to consider purchasing additional commercial auto insurance because your personal auto insurance may not cover any accidents that occur while providing a ridesharing service. If you don’t disclose that you drive your car for money and your insurance company finds out, they could cancel your policy.
Rideshare insurance isn’t accessible everywhere. If you can’t get one, you would need a fully insured commercial insurance policy. Commercial policy plans have more significant liabilities and prices than typical policies. The average commercial auto insurance policy for a passenger car costs around $1,200 to $2,400 a year or higher.
Uber offers commercial insurance covering you while you’re providing a ride share service (which likely won’t apply the whole time you are on the job). However, you still need to have your insurance when using your vehicle for personal purposes. All Canadian drivers are required by law to have liability and comprehensive coverage.
As we’ve discussed earlier, you should tell your auto insurer about your ridesharing gig; else, you stand the chance of invalidating your personal car insurance even if you are getting commercial coverage from Uber.
You May Also Need a Commercial Driver’s License
Before we answer- how much is commercial auto insurance for uber? You should know that another thing that you might need is a commercial license. Anytime you pick up a passenger while driving for Uber, you are driving professionally. Although you operate independently, some states will still regard you as a commercial driver.
Each state has its laws, and some states will require you to have a commercial driver’s license to drive for Uber or any related service. On the other hand, some states only require you to have a commercial license if you drive full-time. To know your state’s requirements, confirm with your state’s DMV.
Many insurers have recently created extra coverage options for Uber and Lyft drivers and made them available in all 50 states. If you plan to start driving for Uber, you should inform your insurer and find out if you will need commercial insurance and a commercial driver’s license.
The Uber Drivers Insurance Challenge
Since your personal insurance might not offer you any compensation if they find out you are working with Uber, you must find the right rideshare insurance that works well for your new business. The other option, as stated earlier, is commercial insurance. This brings up the question- how much is commercial auto insurance for uber drivers?
Commercial insurance for Uber drivers is very pricey as most policy providers request $3,000 to $5,000 per year. On the other hand, rideshare insurance is economical at $100 to $200 monthly. But the challenge is ridesharing insurance is not accessible to all Uber drivers throughout the country, and drivers in most states have access to only one insurance option.
The average cost of commercial vehicle claims is $45,000; therefore, operating without the needed auto insurance policy is a risk you shouldn’t take.
How Much is Commercial Auto Insurance for Uber Covering When the App is On?
Uber asks all their drivers to have car insurance and only offers additional insurance coverage while the app is on. This is how it works: When the uber app is off, you are covered by your personal car insurance. When you turn on the uber app, a low level of liability insurance goes active.
When you accept a trip, a higher level of coverage commences and stays active until the passenger alights from the vehicle. Before, Uber driver insurance only offered coverage when a passenger was in the vehicle, but the policy has since been updated.
How Much is Commercial Auto Insurance for Uber Covering When the App is Off?
Uber’s Intact Insurance covers you when you log into the app, and you’re available for rides, but not when you are offline and logged out of the app. If you get involved in a car crash when you’re not logged in, you will have to depend on your personal car insurance policy for coverage.
The basic Intact car insurance for Ontario and Alberta Uber drivers may not be sufficient for all drivers. To get more coverage, you can buy more comprehensive Uber auto insurance.
Uber’s intact insurance does not cover drivers who engage solely in the Uber Eats service. If you fall under this category, you have to purchase personal car insurance, together with additional coverage for any accident that happens while you’re driving for Uber Eats. However, if you drive for both Uber and Uber Eats, Intact Insurance will cover you when you log into the app, ready to accept ride requests.
Where can You Get Uber Insurance for Drivers?
Suppose you drive for Uber in Alberta or Ontario. In that case, you naturally have coverage from a basic commercial auto insurance policy through Intact Financial Corp. Uber provides this coverage and pays the premiums. The intact insurance offers coverage to rideshare drivers immediately they log into the app until a rider gets off the vehicle.
Uber’s Intact Insurance policy comes in four phases or periods in Ontario. The table below covers them:
|Phase 0||This phase is when the uber driver uses his vehicle for personal purposes and doesn’t log into the uber app. His car insurance policy covers him, and intact insurance does not apply in this phase.|
|Phase 1||The Uber driver is logged into the app and free to accept rides. He is covered by $1 million in third party liability coverage, Collision and Comprehensive benefits, and Standard Ontario Accident Benefits. He has a $1,000 deductible. A deductible is your share of the repair costs before your insurance company covers the remaining payment.|
|Phase 2||The Uber driver has accepted a ride and is on his way to pick up a passenger. He is covered by $2million in third party liability coverage, Collision and Comprehensive benefits, and Standard Ontario Accident Benefits. He also has a $1,000 deductible.|
|Phase 3||The Uber driver is transporting a passenger. He is covered by $2million in third party liability coverage, Collision and Comprehensive benefits, and Standard Ontario Accident Benefits with a $1,000 deductible.|
Although Uber’s Intact Insurance coverage is only available in Alberta and Ontario, the CBC has reported that Uber and intact are working on extending the range to Québec and other provinces subsequently. Lyft insurance is similar to Uber insurance, but the deductible amounts for collision and comprehensive benefits are different. Uber’s deductible is $1,000, while Lyft’s is $2,500.
How much is commercial auto insurance for uber coverage offered by Intact Insurance Uber ride-sharing operations :
UberX: It covers up to 4 passengers and is the most affordable Uber operation.
UberXL: The vehicles are usually SUVs, and the insurance covers up to 6 passengers.
Uber Select: Uber Select is Uber’s starting luxury car service. The vehicle can convey up to 4 people, are BMWs, Mercedes, and other luxury cars.
UberHop: You can share trips with other users along famous roads.
UberPool: You can share your ride with other people to cut the cost of the trip.
How much is Commercial Auto Insurance for Uber (Rideshare Insurance) Coverage at Each Phase?
|Phase||How Much Insurance Coverage is Offered|
|Phase 1||Third-party liability coverage only:|
$50,000 bodily injury per individual.
Uber offers $100,000 bodily injury per accident or crash at this phase.
Uber provides $25,000 property damage per accident or cash.
|Phases 2 and 3.||Liability coverage: $1 million per incident.|
Uninsured/underinsured: The coverage varies by state.
Collision and comprehensive benefits: You can get up to your car’s value if you also have comprehensive and collision coverage on your personal policy.
How much is Commercial Auto Insurance for Uber Eats(Rideshare Insurance) Covering at Each Phase?
Uber Eats is Uber’s online platform for food ordering and delivery. The insurance the delivery app offers depends on the phase or period you are.
This is when your app is off. Only your personal insurance policy covers you.
|How Much Insurance is Offered:|
|Phase 1||You’ve turned on your app, and you are waiting for a request. Your personal policy without rideshare coverage will not cover you.||Third-party liability only:|
It covers $50,000 bodily injury per individual.
It covers $100,000 bodily injury per crash or accident.
It covers $25,000 property damage per crash or accident.
|Phase 2||You’ve accepted a request, and you’re on your way to pick up a delivery.||Third-party liability: It covers $1 million per incident.|
Comprehensive and collision benefits: You can get up to your car’s value if you have comprehensive and collision coverage present on your personal policy.
|Phase 3||The food or good is in your each. In this phase, your employer’s policy is fully available.||Third-party liability: Covers $1 million per incident.|
Comprehensive and collision benefits: Like the second phase, if you have comprehensive and collision coverage on your personal policy, you can get up to your car’s value.
Does Driving for Uber Raise your Rates?
Your personal premiums won’t go up just because you drive for a ride-sharing company. It depends on your insurance company. Some private insurance companies offer coverage for people driving for uber or Lyft.
Examples are Intact Insurance and Aviva Insurance. They offer insurance for drivers who use their personal vehicles, but these policies have limitations. Therefore, before you sign up, ensure you read and understand everything.
Aviva’s insurance policy allows driving for Uber for a maximium of 20 hours a week. You also need to have the requirements below:
- Six years of driving experience.
- A G2 driver’s license or higher.
- You are only allowed to carry up to eight people, including yourself.
- You can’t use your car to make retail or wholesale deliveries.
- You can’t be a registered taxi or limousine.
Intact insurance doesn’t charge you an additional cost to drive for Uber. Like Aviva, the policy doesn’t allow you to work for Uber Eats or any other Uber service. Another private insurance company that won’t charge you extra as a rideshare driver is Belairdirect but this coverage is only available in Ontario.
New Rules for Uber Drivers in Toronto:
- You can only book fares with the Uber smartphone app.
- All Uber drivers must have gone through background checks.
- Uber’s annual licensing fee is $10 per driver and 20 cents for each trip.
- You must have a G class license and a city permit.
- Your vehicle must have 2 safety checks in a year.
- UberX drivers, just like taxis, must increase their base fare from $2.50 to $3.25
- You need $2 million in liability insurance and must present insurance evidence to the City of Toronto.
- Surge pricing in high demand situations still apply.
- Cameras and emergency lights are not required now but are subject to review.
Uber Insurance in Canada: What it Covers
Economical Insurance provides the commercial auto insurance offered by Uber on rideshare trips in Ontario. If an accident occurs between accepting a trip and reaching the rider’s destination, the policy offers the following protection:
How Much is Commercial Auto Insurance for Uber in Ontario Covering?
- $2 Million of Third Party Liability Coverage
You’ll receive $2 million in coverage for liability to third parties for accidents that happen from the moment you accept an Uber trip until the passenger exits the vehicle.
- $2 Million of Uninsured/Underinsured Automobile Coverage
It protects all vehicle occupants who sustained injuries in an accident by a hit-and-run driver, an uninsured driver, or an underinsured driver.
- Contingent Collision and Comprehensive Coverage
This covers loss or physical damage to your vehicle up to its actual cash value, after a $1,000 deductible. This coverage only applies if your vehicle is also insured for collision and comprehensive coverage on your personal car insurance policy.
- Statutory Ontario Accident Benefits
Coverage in- between trips:
Uber provides commercial auto insurance on your behalf when you are available through the Uber app but have not yet accepted a trip. In this case, the insurance provides $1 million of third party liability coverage and uninsured/underinsured automobile coverage together with all the other coverage listed above.
How Much is Commercial Auto Insurance for Uber in Quebec Covering?
- $1 million of Civil Liability Coverage
It covers your civil liability to third parties for any accident that happens from the moment you log on the Uber app until you log off.
- Contingent Coverages
This coverage covers loss or physical damage to your vehicle if you have it on your personal car insurance policy. The coverage and deductible you’ll be required to pay are the ones included in your personal auto policy.
How Much is Commercial Auto Insurance for Uber in Alberta Covering?
- $2 Million Third Party Liability Coverage
It covers your liability to third parties if an accident occurs between the moment you accept an Uber trip until its end.
- $2 Million Uninsured/Underinsured Motorist Coverage
It protects all the occupants of a vehicle who sustained injuries in an accident by a hit-and-run driver, an uninsured driver, or an underinsured driver.
- Loss or Damage to a Vehicle: Alberta Statutory Accident Benefit
This policy offers coverage to loss or damage to a vehicle from the time you accept a trip until the trip ends. It is subject to a $1,000 deductible.
- Coverage Between Trips: Alberta Statutory Accident Benefit
Uber also provides you with commercial auto insurance when you are available through the Uber app but have not yet accepted a trip. The insurance provides you with $1 million of third party liability coverage if your insurer fails to provide you with coverage. It also includes statutory accident benefits, uninsured and underinsured motorist coverage.
How Much is Commercial Auto Insurance for Uber Delivery in Nova Scotia Covering?
- Coverage when you are offline or at Phase(period) 0 :
Uber offers no coverage at this phase.
- Phase 1:
When you log into the app, ready to accept rides, your coverage entails $1,000,000 Third-Party Liability, Standard Accident Benefits, Contingent Collision, and Comprehensive Benefits, with a $1,000 deductible.
- Phases 2 & 3:
When you are on your way to pick up a delivery or are conveying the package already, your coverage entails $2,000,000 Third-Party Liability, Standard Accident Benefits. Contingent Collision and Comprehensive Benefits, with a $1,000 deductible.
Note: The above is only applicable to Uber delivery coverage. Uber Ridesharing is not yet present in Nova Scotia.
How Much is Commercial Auto Insurance for Uber in Saskatchewan Covering?
You don’t need to adjust or change your personal auto insurance policy to offer ridesharing services in Saskatchewan. You will keep paying for your plates and get the same SGI basic coverage. Uber, on the other hand, will pay an extra premium to SGI so that your basic insurance coverage will include your ridesharing activity. It will cover you from the moment you accept a ride through the Uber app until you complete the trip.
If you cause an accident while providing ridesharing services, your basic plate insurance coverage will still apply. If you incurred damages over $200,000, the additional liability insurance from Uber would apply. The policy purchased by Uber offers $2million liability limits and $2 million uninsured motorist coverage.
If you have an Auto Pak policy for replacement cost coverage or reduce your deductible, the policy will not cover you if an accident occurs during a ridesharing activity. However, if an accident occurs while driving your car for personal use, your Auto Pak policy will apply.
How Much is Commercial Auto Insurance for Uber in British Columbia (BC) Covering You?
You do not need to change your personal auto insurance policy to provide ridesharing services in British Columbia. Your plate payments and personal auto insurance coverage will remain the same. Your personal coverage will only apply when driving for personal use or before accepting a ride on the Uber app.
The Uber commercial auto insurance kicks in when you accept a ride request on the Uber app, and you are on your way to pick up the rider. The coverage continues throughout the ride until you complete the trip.
This Uber purchased policy covers up to $2 million in third-party liability limits and conditional physical damage coverage with a $1,000 deductible. Learn more about how auto insurance works in British Columbia (BC).
How Much is Commercial Auto Insurance for uber TAXI Covering?
Unlike ride-sharing vehicles used for both personal and commercial uses, taxis are regarded as commercial vehicles, so they must have proper commercial auto insurance coverage to operate. All uberTAXI drivers and partners are commercially licensed and fully covered by commercial insurance policies, depending on the provincial requirements.
Why do You Need Uber Insurance if You’re Already Covered as a Driver?
The answer to this question is a little complex. Although Uber covers its drivers, Canadian law requires all commercial drivers to have their personal insurance coverage.
Intact insurance coverage technically solves this problem, but it doesn’t completely solve it. Besides, when you’re driving for Uber to make extra cash, you wouldn’t want to be involved in an expensive and lengthy legal battle. Therefore, you should ensure you’re protected financially against potential damages that might result if an accident occurs when you are carrying passengers.
How to Get the Best Rates on Uber Insurance for Drivers in Canada
When uber first extended its services to Canada, many auto insurers denied drivers coverage when they found out the accident occurred while the driver was providing ridesharing services for Uber. Thankfully, Uber’s commercial policy through Intact Insurance now covers Uber drivers while driving for Uber.
However, it’s still vital for you to maintain a personal auto insurance policy while driving on personal or Uber-related business. Your commercial coverage might not be enough when you are driving for uber, but a good insurance broker can help you get the best rideshare insurance rate so you can be fully insured.
How Much is Commercial Auto Insurance for Uber by Company?
If your insurance policy includes rideshare coverage, it can cost you about $15 extra each month. However, some insurance company offers cheaper rates. In the United States (US) only a few insurance companies share estimated rates, for example:
State Farm – It costs 15%-20% of your insurance premium above traditional policy.
Erie Costs – It costs around $9 to $15 above your traditional policy per month.
Allstate – Costs about $20 above traditional policy per year.
Mercury – The starting cost is around $27 per month.
Safeco – The cost above traditional policy is likely lower than $10 per month.
What Happens if You Get into an Accident While Driving for Uber or any Ridesharing App?
If you cause an accident due to your negligence during phases 2 or 3, i.e., while you’re conveying passengers or on your way to pick up a rider, you can rely on your insurance policy. The insurance policies for Uber, Uber Eats, Postmates, and Lyft will cover medical bills and other property damages you cause up to $1 million.
Suppose an underinsured or uninsured driver hits you while driving for Uber or Lyft. In that case, your policy coverage will depend on your state because the amount the policy covers varies by state. Uber Eats and other delivery companies do not offer coverage for this circumstance.
You can only get comprehensive and collision coverage from Uber and Uber Eats if you also have the coverage on your personal policy. Remember, it attracts high deductibles, and the policies only adhere once you’ve accepted a request or while you’re conveying riders or food.
If you cause an accident due to your negligence during phase 1, you’ll have to file a claim with your insurance provider, except if your state law or rideshare insurance policy says otherwise. If the insurance company denies your claim or you don’t get a full reimbursement, Uber’s insurance (also applicable to Uber Eats drivers) might cover the rest. However, in these cases, ridesharing companies’ limits are quite low. This is why you need your personal policy to bridge this gap.
How to Report and File A Claim After An Accident
The first thing you should do after an accident is to call the police. It doesn’t matter whether you were in rideshare mode when the accident happened or not; calling the police should be your first step. The police might ask you to provide your Uber rideshare certification or your personal proof of insurance, depending on the kind of accident. You’ll refer to your electronic certificate of insurance through the uber app.
The next step is to notify your personal insurance company. Even if Uber can cover the damage, your insurer will learn of the accident. If you decide not to tell them and they find out, you could be dropped, so it is better they hear it from you.
The last step is to inform your ridesharing company (Uber, Lyft, e.t.c.). If you are eligible for the company’s coverage, you can engage a representative to help you with the claims process.
FAQs and Answers on How Much is Commercial Auto Insurance for Uber
It’s no doubt that Uber has set a new trend in the transportation industry. Like any major change, it comes with a lot of unknown aspects and questions. One of the questions is “how much is commercial auto insurance for uber?” As explained in this article, commercial auto insurance for Uber drivers can cost you between $1,200 to $2,400 or higher yearly.
A cheaper option is rideshare insurance, costing you between $10 to $350 per year. However, the cost depends on your location and insurance company. This is why you need to contact an experienced insurance broker to help you find the best rates in your location.
As stated earlier, you’ll have to file a claim with your insurance company if you cause an accident during phase one. Want to know how you can get your insurer to give you the highest possible reimbursement? Check out How to negotiate the best bodily injury claim settlement amounts.