Ridesharing services use mobile apps to connect paying passengers with drivers who use their personal vehicles. Sounds simple, right? But do you have the proper insurance coverage?
FSCO-approved insurance coverage for certain ridesharing drivers, passengers and vehicle owners
The Superintendent of the Financial Services Commission of Ontario (FSCO) has approved fleet auto insurance coverage for the following ridesharing companies:
All drivers, passengers and vehicle owners in Ontario using these ridesharing companies are covered from the moment the app is turned on to the moment passengers exit the vehicle. When the app is turned off, the vehicle owner’s personal auto insurance policy applies.
What about other ridesharing platforms?
Other ridesharing platforms are not covered.
If you use or drive for other ridesharing companies, you may not be protected under your own personal auto policy against certain damages and losses or in case of injury to yourself or others.
Find out if you’re covered. Check with your auto insurance representative and ridesharing company. The proper coverage must protect vehicle owners, drivers, passengers and others.
Important information for ridesharing drivers and vehicle owners
Inform your personal auto insurer
Drivers and all vehicle owners who use their personal vehicles to carry paying passengers should inform their personal auto insurance representative.
Your insurer may permit you to drive for a ridesharing company and provide additional coverages that are not available through the ridesharing company’s insurer.
Please note that insurers are not required to insure ridesharing activities on your personal automobile insurance policy and may cancel or not agree to renew your policy, regardless of whether or not you inform them.
The auto insurance market in Ontario is competitive, and consumers should shop around for the best possible rates and coverage that meets their needs.
Driving leased and rented vehicles
Review your lease or rental agreement carefully before you carry paying passengers. You may not be able to participate in ridesharing as a driver if your vehicle is leased or rented. You may also want to contact your leasing or car rental company and get independent legal advice before you sign on with a ridesharing service.
The ridesharing company’s policy may differ from your personal policy
Coverages provided under the ridesharing company’s policy may be different from the coverages and options you have with your personal auto insurer. Review the coverages provided by the ridesharing company carefully. Read the information on the ridesharing company’s website. Talk to the ridesharing company and its insurer as well as your personal auto insurance representative for additional information and advice.
Amount of coverage under the ridesharing company’s policy
The amount of coverage under the ridesharing company’s policy may vary depending on whether the driver has accepted a request using the app. The coverage can also be affected by requirements of the municipality. Read the information on the ridesharing company’s website. Talk to the ridesharing company and its insurer for more details about the coverage. Talk to municipal officials for details about municipal requirements.
Using the electronic insurance card
FSCO has also approved the use of an electronic insurance card (pink slip), enabling drivers to show proof of coverage to the police while engaged in ridesharing. You will be able to access the insurance card through the ridesharing app. The e-insurance card is activated when you are logged in to the app.
Making an insurance claim after an accident
A number of variables can impact which insurer you should send your claim to. Before you make a claim with an insurer, it is important to understand your insurance coverage options.
Carefully review the information provided by your ridesharing company, their insurer and any other insurer that may cover you, such as your personal auto insurance policy. You may also wish to consider getting independent legal advice, particularly if you or others were injured in the accident.
If a ridesharing app was not on at the time of the accident, contact your personal auto insurance representative. Also, be prepared to share your insurance information with passengers, other motorists and any pedestrians who may have been involved in the accident.
Important information for ridesharing passengers
Making an insurance claim after an accident
A number of variables can impact which insurer that you should send your claim to. Generally, if you have auto insurance coverage under your own policy or someone else’s policy, such as a family member, contact your personal auto insurance representative for information and advice.
If you don’t have personal auto insurance coverage, contact the ridesharing company’s insurer about making a claim. You can get the insurance policy information from the ridesharing driver.
You may also wish to consider getting independent legal advice, particularly if you or others were injured in the accident.