July 19, 2024

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Rideshare companies in Canada that provide insurance

Rideshare companies in Canada that provide insurance

When it comes to car insurance, rideshare drivers need to make sure they have adequate coverage.

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More and more people are turning to ridesharing apps to save both time and money when it comes to transportation. 

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The global ridesharing market is expected to climb from US$21.42 billion in 2020 to US$61.24 billion in 2026. 

For the drivers, these apps are advertised as an easy way to make some extra cash.

But when it comes to car insurance, drivers need to make sure they have adequate coverage.

Do rideshare companies provide insurance for their drivers?

Luckily, it appears that most ridesharing companies offer auto insurance coverage, just as long as the ridesharing app is turned on. Once a ridesharing app is closed, the driver’s insurance defaults to their own personal policy. 

According to Russ Courtney, senior media relations and digital officer at the Financial Services Regulatory Authority of Ontario (FSRA), the FSRA is not currently aware of any ridesharing apps that don’t have coverage. Nonetheless, the onus is still on drivers to look up what coverage is available to them, and any finer details about that coverage. 

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If it is discovered that a ridesharing company does not have coverage, drivers and vehicle owners need to be aware that there may be serious gaps in coverage and they should contact their own insurance provider to discuss those gaps and risks before continuing to drive for that company,” Courtney says. “[The] FSRA also suggests reporting to the municipality where the company is operating.” 

Even if you are covered by a ridesharing app’s insurance provider, it’s still critical to inform your personal insurance company that you’re using your vehicle for commercial purposes. That’s especially true if you don’t have full ownership of the vehicle.

“If your vehicle is leased or rented you may not be allowed to carry paying passengers, so it’s best to carefully review your lease or rental agreement,” Courtney says. “You may also want to contact your leasing and car rental company.”

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How working for a rideshare company can impact your personal insurance

Whether or not working for a rideshare company would impact your own personal policy or premium depends on the company . Courtney says this would vary by insurance company, so you’ll need to check with your provider, agent, or broker. 

You’ll also want to check that you have the right amount of coverage through a ridesharing company. 

“Not having enough could mean your losses are not covered,” Courtney says. Your personal auto insurance coverage may not be the same as what the ridesharing company’s policy is offering. 

That’s why it’s important to carefully review the coverages provided and speak with your own insurance provider if needed, he adds.

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Rideshare companies that offer insurance

If you are ready to hit the road as a rideshare driver, here’s a list of the auto insurance policies you’ll want to know about. These are all auto insurance policies that the FSRA has approved for the following ridesharing companies:

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Notably, most coverage appears to start at $1 million third-party liability, include standard accident benefits, and have a $1,000 deductible for all perils, collision, comprehensive or specific perils. Again, you’ll want to read the fine print of each policy for exact details.

You and your passengers can breathe a little easier knowing that financial support is available if any accidents were to occur. 

LowestRates.ca is a free and independent rate comparison website that allows Canadians to compare rates for various financial products, like auto and home insurance, mortgages, and credit cards.


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