To be a good driver, you not only need to follow the rules of the road, but you also need the right auto coverage in place. As Uber commercial drivers, you spend a lot of time on the road, putting you at an increased risk of being in a collision. Luckily, Uber insurance is meant to protect drivers from the moment a ride request comes in through their Uber app.
Do I need insurance as an Uber driver?
If you drive for Uber, you may be wondering, "Do I need insurance?" The short answer is yes. Because you operate a motor vehicle on public roads in Canada, you are legally required to have valid insurance at all times.
Is Uber insurance the same as commercial auto insurance?
Uber insurance is a form of commercial insurance in the sense that this coverage takes into account that you use your vehicle for your business. The difference between the two is Uber coverage is tailored to the needs of rideshare drivers, while standard commercial auto insurance may be tailored to other types of business operations.
Uber's commercial policy for rideshare driving
Uber automatically covers Uber drivers with their own insurance while on the job. However, this only applies to those living in provinces with private insurance systems. So, what type of coverage does Uber's insurance offer? Here's a closer look:
- All mandatory policies included in personal insurance plans (liability coverage, statutory accident benefits, uninsured motorist.)
- Collision and comprehensive coverage.
- Coverage for paying customers.
- Enhanced coverage up to $2 million during rides.
Personal auto insurance to consider
While Uber will provide coverage to rideshare drivers when they're carrying passengers, this type of rideshare insurance will not protect you if you are not performing ridesharing services. Because of this, you'll need to purchase additional coverage for when you operate your vehicle for personal use. Here's a closer look at the types of auto insurance you'll need to consider:
Third-party liability coverage
Third-party liability coverage is a mandatory insurance policy for all drivers, regardless of whether you need a personal auto insurance policy or commercial coverage. This insurance protects you in the event you cause property damage or bodily injuries to a third party while operating your vehicle.
Should a lawsuit be filed against you, third-party liability coverage will cover medical costs, legal fees, repairs, funeral expenses, and other costs associated with the settlement of your lawsuit up to your policy limits.
Uninsured motorist insurance
Uninsured motorist insurance, also known as uninsured automobile insurance, is another mandatory personal auto coverage required by all Canadians. This insurance policy will cover the cost of vehicle repairs if you are in an accident with an at-fault driver who is uninsured or underinsured. This insurance coverage also protects you if you are hit by a hit-and-run driver.
Accident benefits coverage
Accident benefits coverage is mandatory in all provinces and territories except Newfoundland. This insurance will cover you if either you, your vehicle occupants, or pedestrians are injured in a collision, regardless of who is at fault. Accident benefits will cover the cost of medical bills, rehabilitation costs, and other expenses associated with your recovery.
Direct compensation - property damage (DCPD)
Direct compensation - property damage is mandatory in Nova Scotia, Quebec, Newfoundland and Labrador, Prince Edward Island, and New Brunswick, while optional in all other provinces. This personal auto policy allows drivers to deal directly with their own insurance personal auto insurance provider following a collision with an at-fault driver, ensuring they receive compensation for damages swiftly.
Collision insurance
Collision car coverage is optional for all motorists in Canada. If your vehicle is damaged in an at-fault collision, this policy will cover the cost of vehicle repairs you need up to your policy limits.
Comprehensive coverage
Comprehensive coverage is also optional for all Canadian motorists. With comprehensive car coverage, your vehicle will be protected in the event it is damaged during a non-collision event. Common perils included in this insurance plan include theft, vandalism, falling objects, and certain weather conditions. Note that collision and comprehensive coverage require policyholders to pay a deductible before their provider will kick in and cover the rest.
Accident forgiveness
One final type of optional car insurance coverage popular among drivers is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim.
Note: coverage varies by province.
Who insures Uber in Canada?
Uber car insurance is provided to Uber drivers free of cost to ensure those working for the ridesharing company are protected in the event they are involved in a car accident when performing their rideshare service. As an Uber driver, this insurance coverage is with Economical Insurance. Note that to be covered by Uber, you need to live in a province or territory with a private insurance system. Otherwise, you will need to purchase commercial coverage from a personal insurer on your own.
How much does Uber insurance cost?
Ridesharing insurance offered by Uber is free when you drive for Uber. However, because you are using your personal vehicle when not doing your job, you'll need to purchase a personal auto policy so you are protected when using your car for personal reasons. Because you'll need to purchase your own policy, the cost of your premium will vary based on several factors, such as your driving experience, how often you use your vehicle personally, where you live, the types of insurance you choose, and more.
Can you drive Uber Eats without insurance coverage?
No, you cannot drive for Uber Eats without some type of Uber insurance. Economical Insurance is the provider offered by Uber free of cost for those working in provinces with a private insurance system. If, however, you live in a province like British Columbia, where insurance is public, you'll need to purchase your own commercial car insurance as coverage is mandatory for all motorists.
Do I need to tell my insurance company that I drive for Uber?
Yes, it's always recommended that you inform your insurance company that you drive for Uber when renewing car insurance, especially if you live in a province where Uber insurance is not automatically provided to you as a rideshare driver. Many insurance companies will help you craft a customized commercial insurance policy and personal auto insurance plan that's tailored to your unique needs and schedule. That way, you can ensure you're fully protected behind the wheel at all times. Failing to inform your provider that you are a rideshare driver could invalidate your auto insurance, leaving you to front the bill if you need to file a claim for damages or injuries.
What is better, one-way or two-way insurance?
When shopping for coverage, you may come across the terms one-way or two-way insurance. So, what exactly do these terms mean and which is better? One-way insurance means you'll have coverage like third-party liability coverage and uninsured/underinsured motorist insurance to protect you if you cause harm while using your vehicle. It would not cover you if someone hits your car. In contrast, two-way insurance works to protect you if you cause harm or if harm is caused to you.
Are Uber drivers fully insured?
So, does Uber insurance cover drivers fully? Yes and no. Ridesharing companies like Uber provide coverage to drivers only when they are operating and they're performing their jobs. The moment drivers use their personal vehicles outside of their Uber schedule, they won't be covered.
Contact BrokerLink today
At BrokerLink, we help Canadians find affordable auto insurance, whether they require commercial auto insurance or personal car insurance. With access to multiple auto insurance policies, our experienced brokers can customize your coverage to fit your unique driving habits and budget. Our brokers can also help you find insurance for the following:
If you're up for an expired car insurance renewal and want to work with BrokerLink, visit us at one of our many locations across Canada. If there's no BrokerLink in your neighbourhood, contact us by phone or email! And if you're browsing for rideshare insurance options, take advantage of our free online quote tool for a competitive estimate that's ready within minutes.
BrokerLink is also an information hub! Whether you want to learn about the best and safest cars on the market or the number one cause of highway accidents, we've got you covered.
Get an auto insurance quote [phone]
