Affordable Ridesharing Insurance Quotes
The advent of ride-hailing services such as Uber and Lyft has transformed the transportation industry. Such services have received overwhelmingly positive market reception due to the cost-cutting benefits and convenience that they afford Canadian users. However, this trend has presented ridesharing drivers with the daunting task of obtaining affordable insurance policies that will help cater to the unique risks that come with commercial driving.
In Canada, for instance, ridesharing companies are required to insure their drivers. A driver using his/her personal vehicle commercially needs to obtain additional coverage that bridges the gap between commercial and personal use of the vehicle. This policy type differs from one insurer to the next, which complicates the process of shopping for one. Luckily for you, the sages at MoneyWizard.ca are at your service whenever you need information about ridesharing insurance. Click through to read more.
Ridesharing Insurance Overview
Regular personal insurance policies don’t cover commercial vehicle use, and as such, ridesharing drivers must shop for affordable insurance plans to safeguard their financial future. This is essential because if an accident were to occur, the driver could end up paying for the vehicle’s repair costs and the injured user’s medical expenses out of his/her own pocket. To avoid this, getting an affordable ridesharing insurance quote from MoneyWizard.ca is important.
What Is Ridesharing Insurance?
A while back, ridesharing companies came under intense pressure for not providing insurance coverage for their drivers. In their defense, the companies argued that the drivers were independent contractors and not employees, meaning that the drivers were personally responsible for the consequences of their own negligence. This argument did not sit well with many people, a reaction that pushed the companies to design an insurance product that would take care of drivers who don’t have commercial policies.
Since a ridesharing driver’s personal car insurance policy didn’t cover business use of the vehicle, it was prudent to establish a special policy that works in both scenarios—when ridesharing drivers are on the road for money and when they are running their personal business. Insurers offered additional coverage dubbed a “ridesharing endorsement” at an extra cost to cushion drivers from liability in case of an accident while on duty. Therefore, ridesharing insurance is auto insurance coverage designed for drivers of ridesharing companies.
Lyft and Uber Insurance
In 2018, Uber controlled 69% of the global ridesharing market in Canada, with Lyft coming in at a distant second at 29%, and these fierce competitors continue to be the leaders in the sector today. As you would expect, they are also leading the way in guaranteeing the safety of their passengers and other third parties by providing an insurance policy that kicks in when the driver’s personal liability coverage fails to settle a claim.
But, there’s a catch. The policy only takes effect under special situations, and not as long as the vehicle is insured with Lyft or Uber insurance. In a typical ridesharing driver’s day, there’s a period when the app is closed, and another when the app is open and the driver is driving around waiting for a ride request. There’s also a period when the driver is on their way to pick up a client and a period when the session ends and the driver is exiting the vehicle.
If an accident occurs when the ridesharing app is off, the driver’s personal liability cover takes effect instead of the Lyft or Uber insurance since the driver was not officially on duty at the time. However, if an accident occurs when the app is on and the driver is driving around waiting for a ride request, Lyft or Uber insurance kicks in when the driver’s personal liability coverage declines to settle the claim. The same case applies from when the driver has accepted the ride request to when they get out of the vehicle.
Rideshare Insurance for Delivery App Drivers
In a bid to boost income, ridesharing drivers have increasingly ventured into delivery app work since it allows them to make money around their schedule. They deliver food, medicine, groceries, and Amazon orders, among other things, around town for a fee. What you might not understand is that while regular rideshare insurance provides cover when a passenger is in the vehicle, it might not necessarily cover damages or liabilities incurred during routine deliveries. This is probably because the risks involved are not factored into the calculation of insurance premiums that the driver currently pays for the rideshare policy.
Considering this, it is crucial to note that some rideshare insurance policies cover the driver regardless of when and why they were on the road when the accident took place. This is too many risks covered in a single policy, which naturally hikes the premiums payable for these kinds of policies. It is important to check with your insurer first to determine whether they offer coverage for the app you are about to work with; this will help you avoid getting into trouble for making assumptions.
What Your Personal Car Insurance Policy Covers
A personal car insurance policy provides coverage for you and your family against injuries or death caused by car accidents. This policy provides a variety of basic coverages, such as bodily injury liability, medical payments, collision, and property damage liability, as well as comprehensive coverage.
How to Shop for Rideshare Insurance
A ridesharing insurance policy is a unique policy that provides coverage for the commercial use of a personal vehicle. The fact that it is a hybrid cover and not a stand-alone policy complicates the process of shopping for one. Usually, the shopping process involves notifying your insurer that you are driving for a ridesharing company so that they can recommend an ideal policy that factors in the risks of commercial driving.
You’ll also need to identify the gaps between your personal liability coverage and your ridesharing company policy to avoid running into unpleasant surprises when filing for claims. Ensure that you compare the quotes for supplementary rideshare insurance and obtain a commercial plan. If the difference in cost is considerably low, then you can opt for commercial coverage. In addition, always read the finer details of the policy so that you can make an informed decision.
Where to Get Rideshare Insurance
Rideshare insurance is an extension of an auto personal insurance policy that kicks in when the vehicle is being used commercially. This means that it can be purchased alongside a stand-alone policy from popular auto insurers, even though not all companies have this policy. MoneyWizard.ca can help you compare the best rideshare insurance quotes and ensure that you get as much value as possible for your money. Click through to compare affordable rideshare insurance quotes in the Canadian marketplace.
How Much Is Rideshare Insurance?
While rideshare insurance is not exorbitant, it definitely costs more than a traditional personal car insurance policy. The cost of rideshare insurance averages from CAD $10 monthly to about double the cost of a standard car insurance policy. A driver’s driving history, location, and elected coverage directly impact the cost of rideshare insurance.
Frequently Asked Questions (FAQs)
1. Do I need to tell my personal car insurer that I am driving for Uber or Lyft?
Your auto insurance policy is always in play until the vehicle is being used commercially. Driving passengers around for a profit presents a new set of risks not factored into traditional auto insurance policies. This could prompt your insurer to decline to settle a claim for a vehicle that was being used to make money. Therefore, it is crucial to inform your insurer about the vehicle’s new use since they are within their rights to decline a claim filed when the car is involved in an accident while ferrying passengers.
2. Does my Uber insurance affect my personal car insurance?
Uber insurance and your personal car insurance rarely clash, considering that there are clearly stipulated circumstances when the specific coverage takes effect. For instance, if an accident occurs when the Uber app is off, the driver will file a claim with his/her personal insurer. But if the app is on, Uber insurance would compensate the driver for damages and other liabilities resulting from the accident.
3. Why do I need Uber insurance if I’m already covered as a driver?
Your personal insurer will certainly decline to settle a claim that occurred when the vehicle was being used commercially, considering the risk was not taken into account during the calculation of payable premiums. Therefore, you’ll need Uber insurance to avoid paying for damages and liabilities out of your own pocket if the vehicle is damaged in an accident that occurred when your ridesharing app was on.
4. Do I still need regular car insurance if I drive for Uber?
You’ll still need regular car insurance if you drive for Uber or Lyft unless you are planning to keep your Uber app running throughout. An Uber insurance policy only honours claims for accidents that occur when the app is on. Your regular car insurance will sort you out if you are involved in an accident while off duty.
5. Do delivery drivers need rideshare insurance?
Yes. Delivery is commercial use of the vehicle, which necessitates getting a commercial or a rideshare insurance policy.
6. Will my personal car insurance cover ridesharing?
Unfortunately, no! As previously mentioned, personal car insurance is only effective until the vehicle is used for commercial purposes, like ridesharing or delivery.
If you’re a Lyft, Uber, or any other ridesharing driver in Canada, getting affordable personal and ridesharing auto insurance coverage will help safeguard your financial future. It will help cushion you from unexpected medical or repair costs in the case of an accident. Click through MoneyWizard.ca to read more about auto insurance.