Does Your Auto Policy Cover Ride-sharing?

Do you work for a ride-sharing company, such as Uber or Lyft, where you schedule passengers via an app and transport them in your personal vehicle? You may already know that your personal auto insurance doesn’t automatically cover the business use of your vehicle, although Lyft, Uber and a host of other companies provide free coverage while you are actively ride-sharing.

Your personal auto insurance covers private use of a vehicle, not commercial use. As a ride-sharing driver, you’ll want to make sure your insurance provider knows that you use your car for ride-sharing so your policy is not voided.

Verify with your employer the type of coverage they provide, and then let your insurer know you drive for a ride-sharing company and how often.

Insurance for ride-sharing employees

Your ride-sharing employer probably provides a policy as part of working for a ride-sharing service. This is the case for Uber and Lyft drivers in Ontario and for Uber drivers in Quebec and Alberta. This ride-sharing policy may differ from your own in the levels of coverage it provides and stipulations around what it doesn’t cover. To understand what policy comes into effect when, it helps to break down your coverage into three distinct periods.

• Between trips: Uber and Lyft provide a minimal amount of coverage as long as the app is on and you are awaiting a ride request.
• On trip: Uber and Lyft provide additional coverage from the moment you accept a ride right until you drop off your passenger.
• Offline: If you are no longer logged into the app, then your personal auto coverage takes effect. Your insurance provider needs to confirm that they accept your ride-sharing activities and may charge you an additional premium.

Ride-sharing insurance how-tos

Before you consider ride-sharing, make sure you are allowed to. It may be illegal in your city or municipality. And if you lease or finance your car, there may be restrictions regarding ride-sharing.

Here’s what you need to do to avoid coverage gaps:

• Read up on and download the ride-sharing policy.
• Understand the limits of coverage and exclusions.
• Compare the coverage levels with your personal auto policy.
• Tell us about your planned ride-sharing activities.
• Share your ride-sharing policy with us.
• Adjust your personal auto insurance policy as needed.

In this article, we mentioned only two companies that provide ride-sharing, but there are several others: DriveHER, ecoRIDES, Facedrive, RideCo and Uride.

Your ride-sharing employer probably provides a policy as part of working for a ride-sharing service.

Verify with your employer the type of coverage they provide, and then let your insurer know you drive for a ride-sharing company and how often. They will give you the information you need on policies available and laws specific to your province.