The Ultimate Guide to Uber Driver Insurance in Canada
By Arthur Dubois | Published on 21 Sep 2023
If you are considering becoming an Uber driver in Canada, you must familiarize yourself with the ins and outs of Uber driver insurance. Understanding the legal requirements will protect you and give you peace of mind as you hit the road to earn extra income. In this ultimate guide, we will explore everything you need to know about Uber rideshare driver insurance in Canada, from the different types of coverage to how to get insurance and manage your costs effectively.
Understanding the Basics of Uber Driver Insurance
When working as a driver for the ridesharing giant Uber, it’s essential to understand the unique car insurance needs of the job. Uber driver insurance is a specific form of coverage to protect individuals who work as drivers for the company. While your personal auto insurance policy may provide some coverage, it’s essential to understand the insurance requirements and limitations that come with driving for Uber.
What is Uber Driver Insurance?
Uber driver insurance is insurance coverage specifically tailored for individuals who work as drivers for Uber. As a driver, you operate a vehicle for business purposes, so you must ensure your insurance coverage protects you. While your auto insurance policy provides coverage for personal use, it typically excludes coverage for business-related activities, such as driving for Uber, regardless of whether you are ridesharing, operating as an Uber delivery service or Ubereats driver.
This insurance gap between a personal policy and commerical policy is where Uber driver insurance comes in. Uber insurance aims to fill in the gaps your auto insurance policy leaves. It provides the necessary coverage to ensure that you and your passengers are protected in the event of an accident or other incidents on the road. If you have an accident while driving for Uber and only have personal insurance, you may face severe financial and legal consequences without proper coverage.
What does the in-house Uber car Insurance cover?
Uber drivers in some provinces have access to Uber’s in-house insurance. Uber’s insurance is a commercial insurance policy that protects drivers when they are engaged on the Uber app, driving to a call or driving passengers. Before September 1, 2020, incidents were covered by Intact Insurance, but since September 1, 2020, they’re covered by Economical Insurance.
Uber’s insurance coverage differs between provinces. However, their policies comply with the insurance requirements of the province you live in.
| Province | Coverage |
| Alberta | $2 million of third-party liability coverage, uninsured motorist or underinsured motorist coverageInsurance to cover loss or damage to a vehicle; coverage has a $2,500 deductible and is in effect from when you accept a trip to when the trip is complete but is only if effect if you have comprehensive and collision with your personal insurance policy$1 million of statutory accident benefits, which includes third-party liability uninsured and underinsured motorist coverage. This coverage is in effect when you are available on the Uber app but haven’t accepted a trip |
| British Columbia | $2 million third-party liability insurance Insurance for damage to your vehicle less a $2,500 deductibleUber insurance takes effect after you’ve accepted a ride request and are en route to pick up the passenger(s) and when you are travelling with the passenger(s) |
| Nova Scotia | Two million dollars of third-party liability coverage, uninsured motorist or underinsured motorist coverageInsurance to cover loss or damage to a vehicle; coverage has a $2,500 deductible, and you must have comprehensive and collision coverage on your personal policy$1 million of statutory accident benefits, which includes third-party liability uninsured and underinsured motorist coverage. The coverage is in effect when you are available on the Uber app |
| Ontario | $2 million of third-party liability coverage, uninsured motorist or underinsured motorist coverage $1 million of statutory accident benefits, which includes third-party liability uninsured and underinsured motorist coverage. The coverage is in effect when you haven’t accepted a trip but are available on the Uber appDrivers who have collision and comprehensive as part of their personal policy will have contingent and comprehensive insurance from Uber to cover damage to a vehicle; coverage has a $2,500 deductible and can cover damages up to the actual cash $1 million of statutory accident benefits, which includes third-party liability uninsured and underinsured motorist coverage. The coverage is in effect when you haven’t accepted a trip but are available on the Uber app |
| Quebec | Civil liability coverage for up to $1 million from the time you log on to the app to the time you exit the appDrivers who have coverage for physical damage to their vehicles as part of their personal policy will have contingent coverage insurance from Uber to cover damage to their car; the deductible will be the same as the deductible on your personal policy |
| Saskatchewan | Saskatchewan drivers pay for their basic plate insuranceUber pays premiums to Saskatchewan General Insurance (SGI) to ensure basic plate insurance covers ridesharingBasic plate insurance applies until the maximum of 200k is exceededUber insurance takes effect after 200k exceeded and provides liability insurance and uninsured motorist coverage up to $2 millionAuto Pak policy doesn’t apply for collisions that occur while involved in ridesharing |
Why is Uber Driver Insurance Necessary?
Uber’s driver insurance is necessary because personal auto insurance policies typically exclude coverage for any business-related activities. If you have an accident while driving for Uber and rely solely on your personal insurance, you may face severe financial and legal consequences.
You operate as a small business owner when rideshare driving for Uber. You are providing a service to passengers and earning income from your driving activities. As a result, you need insurance coverage that reflects the risks and liabilities associated with being a rideshare driver.
Uber’s driver insurance provides the necessary coverage to ensure that you and your passengers are protected in the event of an accident or other incidents on the road. It covers a range of potential risks, including bodily injury, property damage, and medical expenses. Without proper insurance coverage, you could be held personally liable for any damages or injuries while driving for Uber.
The Legal Requirements for Uber Driver Insurance in Canada
Before hitting the road as an Uber driver, it’s essential to understand the specific insurance requirements in your province. Each province has its own set of regulations and minimum coverage limits that drivers must adhere to. By familiarizing yourself with these requirements, you can ensure that you comply with the laws and are adequately protected.
Provincial Insurance Requirements
Provincial insurance requirements vary from province to province, so you must research what is expected of you. By meeting the minimum coverage limits set by your province, you can ensure that you operate within the legal boundaries.
In British Columbia, for example, Uber drivers must have a minimum of $200,000 in third-party liability coverage. This coverage is intended to protect you if you cause harm to others while driving for Uber. It ensures that you have the necessary financial resources to cover any damages or injuries that may occur.
| Province | Insurance Requirements for Uber Rideshare Driver |
| Alberta | Basic policy including $200,000 third-party liability, accident benefits, Direct Compensation Property Damage Uber insurance (automatically enrolled) |
| British Columbia | Basic car insurance through ICBC which includes third-party liability, inverse liability coverage, underinsured motorist coverage, accident benefits, vehicle damageCovered by personal insurance while driving on the Uber app but before you accept a ride requestUber insurance covers you once you accept a ride request until the trip is complete |
| Manitoba | Basic policy, which includes third-party liability, all perils, and personal injury insurancePassenger Vehicle for Hire insuranceYou can customize insurance based on when you drive and the coverage you want |
| New Brunswick | Mandatory insurance of third-party liability, Direct Compensation Property Damage, uninsured motorist and accident benefits coverageTransportation Network Companies (TNCs) who offer ridesharing services must purchase TNC insurance |
| Nova Scotia | Basic policy of third-party liability, Direct Compensation Property Damage, accident benefits and underinsured motoristUber insurance is automatically applied when using the app |
| Ontario | Basic policy of third-party liability, Direct Compensation Property Damage, accident benefits and uninsured motoristAutomatic Uber insurance from the time you log on to the app to the time you log out |
| Quebec | Civil liability coverage of $500,000Uber insurance is automatic from the time you log on to the app to the time you log out |
| Saskatchewan | Basic plate insurance through SGI which covers third-party liability, personal injury coverage for injuries that result from a vehicle collision and coverage for physical damage to your vehicleUber pays premiums to Saskatchewan General Insurance (SGI) to ensure basic plate insurance covers ridesharingBasic plate insurance applies until the maximum of 200k is exceededUber insurance takes effect after 200k is exceeded and provides liability insurance up to $2 millionIf you have an Auto Pak policy and are involved in a collision while engaged in ridesharing, the Auto Pak policy doesn’t apply |
Uber’s Insurance Policy for Drivers
In addition to the provincial requirements, Uber has its own insurance policy that provides additional driver coverage. This policy is designed to complement your existing coverage and provide extra protection while you are actively engaged with the Uber app.
Uber’s insurance policy typically includes liability, collision, and comprehensive coverage. Liability coverage protects you if you cause harm to others or damage their property while driving for Uber. It provides financial protection for any legal expenses or compensation that may be required due to your actions.
Collision coverage, on the other hand, covers any damages to your vehicle that occur due to a collision with another car or object. This coverage ensures you have the necessary funds to repair or replace your vehicle if it sustains any damages in an accident.
Comprehensive coverage protects you against non-collision incidents like theft, vandalism, or natural disasters. It provides financial protection for damages or losses outside of a collision scenario.
Uber’s insurance policy only applies when you are active on the Uber app. Understanding the specific details of Uber’s insurance policy is crucial to ensure that you have adequate coverage in all situations.
As an Uber driver in Canada, knowing the provincial insurance requirements and Uber’s insurance policy is essential. By understanding these requirements and having the appropriate coverage in place, you can drive with confidence, knowing that you are compliant with the law and protected in the event of an accident or incident.
Types of Uber Driver Insurance in Canada
Personal Auto Insurance
Personal auto insurance is most individuals’ standard insurance coverage for their personal vehicles. It provides coverage for personal use but usually excludes coverage for any commercial or business-related activities. While this policy may offer some coverage when you are off the clock with Uber, more is needed when actively driving passengers.
Before becoming an Uber driver, you must speak with your auto insurer. Some insurance companies will not insure drivers who also drive for Uber or other ridesharing companies. Other insurers will insure you, but your premiums may increase. Finally, some insurers have additional ridesharing insurance you can add to your policy.
Uber In-House Car Insurance
Uber provides in-house insurance through Economical Insurance Canada in Alberta, British Columbia, Nova Scotia, Ontario, Quebec and Saskatchewan. Uber’s in-house insurance offers liability coverage and, in some cases, coverage for damage. Uber’s insurance is only in effect when you are engaged with the app.
While it’s a great benefit, Uber’s in-house insurance may not be sufficient to protect you fully. The insurance is primarily geared to protect you from liability but may not cover all the costs or expenses associated with an accident. You may want to speak with an insurance broker to see if you should increase your coverage beyond what Uber offers.
Commercial Auto Insurance
If you plan on driving for Uber full-time or have a vehicle exclusively used for commercial purposes, commercial auto insurance could be a suitable option. Commercial auto insurance policies are specifically designed to cover vehicles used for business activities and usually offer more comprehensive coverage and higher liability limits.
Rideshare Insurance
Rideshare insurance is a specialized type of coverage that fills the gaps between personal auto insurance policies and the coverage provided by Uber. This coverage is designed specifically for rideshare drivers. It ensures that you have adequate coverage during all stages of driving for Uber, including when you are awaiting a passenger when you have a passenger in the vehicle, and when you are off-duty.
How to Get Uber Driver Insurance in Canada
Steps to Apply for Uber Driver Insurance
If you want to increase your coverage beyond what Uber offers, there are companies that will insure you as a rideshare driver. Getting insured as an Uber driver in Canada involves a few different steps. First, you will need to gather the necessary documents. Then, you can contact insurance providers offering Uber driver insurance and start the application process. Obtaining quotes from multiple car insurers to compare coverage options and costs can help you get the right insurance at the right price.
Documents Needed for Application
When applying for Uber driver insurance, you will typically need to provide your driver’s license, vehicle registration, proof of insurance, and documentation related to your driving history. Your information may include any accidents or traffic violations you have had. To ensure you receive accurate quotes and appropriate coverage, you must be honest and transparent when providing this information to insurers.
Costs Associated with Uber Driver Insurance
Factors Influencing Insurance Premiums
The cost of Uber driver insurance in Canada can vary based on several factors. Some key factors influencing insurance premiums include the driver’s age, driving experience, location, type of car, and the coverage limits chosen. Additionally, any previous accidents or driving violations may also impact the cost of insurance coverage. To ensure you get the best rates, comparing quotes from different insurers and considering bundling your coverage with other policies is advisable.
How to Lower Your Insurance Costs
You can employ several strategies to lower your insurance costs as an Uber driver in Canada. One option is to increase your deductibles, which can help reduce your premiums. Maintaining a clean driving record, taking defensive driving courses, and installing safety features in your vehicle can also help lower your insurance costs. Finally, bundling your Uber driver insurance with other policies, such as home or renters, may qualify you for discounts.
The Bottom Line
By understanding the basics of Uber driver insurance, knowing the legal requirements, and exploring the different coverage options, you can ensure that you are adequately protected as you embark on your journey as an Uber driver in Canada. Remember to obtain the necessary insurance coverage, follow the recommended steps for getting insured, and manage your costs effectively to maximize your experience as an Uber driver.
