Does carpooling affect my insurance?

High Occupancy Vehicle (HOV) or carpool lanes are quickly becoming a staple on some of Canada’s busiest roads and highways in order to minimize traffic and decrease exhaust emissions.

The Canadian Automobile Association reports that the average yearly cost to operate a vehicle can be up to $9,000. Amounting to almost $25 per day, it is easy to understand why more Canadians are incorporating carpooling into their commute.

Whether it is your daily commute to work or parents shuttling their kids to and from extra-curricular activities, carpooling is a feature of many Canadian’s daily routines. As a passenger and a driver in a carpool, it is important to be aware of the impact carpooling could have on your insurance.

If you are considering driving in a carpool, first contact your BrokerLink broker to discuss your current auto insurance coverage.

The most important type of insurance you need to consider when carpooling is liability insurance.

Accident benefit and liability coverage are mandatory for all vehicle owners in Canada. It provides coverage for medical treatment, income replacement and other coverage if you are injured in an accident. Additionally, it provides protection if someone else takes legal action against you as a result of an accident.

Increasing the number of regular passengers in your vehicle can increase the likelihood of an injury and liability claim in the event of a collision.

As the driver of a carpool, all passengers in the vehicle are now granted coverage under your policy, whether they have their own coverage or not. The same is true if you are a passenger in another vehicle. In the event of an accident, the driver’s insurance would provide you coverage and reparations for any property damage or bodily injuries you may experience.

If you plan on having a higher number of passengers in your vehicle, it is a good idea to carry a higher than normal amount of liability insurance. At least $2,000,000 in liability insurance is recommended to protect yourself and your passengers. This liability coverage will provide protection to you and your passengers for any personal injury, or legal costs associated with the incident.

Personal Umbrella Coverage can provide a higher level of liability protection should you need a higher limit of liability coverage. If you are constantly driving your child’s soccer team to games over long distances or simply want extra protection, talk to your local BrokerLink broker about whether an umbrella policy is right for you.

If you are considering arranging a carpool, don’t hesitate to contact your local BrokerLink branch. We are happy to guide you through the insurance process and will work to ensure you have the coverage you need.