Ridesharing insurance for Uber and Lyft drivers
Ask us about Uber and Lyft insurance if you’re driving paying customers around in your family or personal car. Ridesharing isn’t covered by most basic auto insurance policies, but we can get you the right coverage at an affordable price. Call us for a free quote.
Great rates for ridesharing insurance
Not only are we trusted partners of Intact, Aviva and Economical insurance – leaders of ridesharing insurance in Canada – we’re also an outlet for over 70 of the country’s top insurers. This means you don’t have to shop and compare coverages, we’ll do it for you and get you some of the best ridesharing insurance rates in Ontario.
Yes, you do need special insurance to drive for Uber or Lyft
There is a lot of confusion about whether you can drive for Uber or Lyft with your regular personal auto insurance policy. Uber and Lyft both have their own insurance that covers drivers and passengers during the duration of the ride, but you’ll require your own policy outside of this time when you’re using your car for personal reasons.
What does ridesharing insurance cover?
Basic auto insurance in Ontario doesn’t include coverage for paid passengers. Uber and Lyft have their own policies that cover you during a ride, and you’ll need personal auto insurance from an insurance company that accepts ridesharing.
Your personal ridesharing auto policy covers the following when you’re off duty:
Protects you from lawsuits and claims if someone else is hurt or killed, or their property is damaged.
Provides Medical benefits if you or your passengers are injured in a car accident, no matter who was at fault.
Covers damage to property you may cause with your vehicle. Think of a car hitting a guard rail or a building. Those need to be repaired at your expense and your insurance can cover it.
If you get hit by a car that’s uninsured or flees the scene, you can recover damages as if they had full insurance coverage.
Uber or Lyft cover the following while you drive for them:
Coverage for paid passengers
When you log in to your Uber or Lyft app, their ridesharing insurance kicks in, so you can drive paying customers with complete coverage under your Uber insurance.
All mandatory coverages
While you’re driving for a ridesharing service like Lyft, their policy covers you for all the same things that your private auto policy covers you for.
Enhanced coverage during rides
During a ride, you have $2 million in liability coverage and $2 million in uninsured auto coverage, regardless of what the limit is on your personal policy.
Collision, fire and theft
Even if you don’t have optional collision and comprehensive coverage as part of your own personal auto coverage, you do while driving for Uber or Lyft.
What other coverage should you think about?
Repairs to your car
Beyond the basics, we recommend collision and comprehensive coverage to protect your car against at-fault accidents, fire and theft when not driving for Uber.
Choosing accident forgiveness as part of your ridesharing insurance means your rates won’t increase after your first at-fault accident.
If you deliver for Uber Eats or drive paying passengers across the border to the United States, you may need business auto insurance. We can help.
Good to know: Common questions about ridesharing insurance
What if I don’t tell my personal insurance company I’m driving for Uber?
Every insurance policy requires you to share information with your insurer or broker that could affect your level of risk. When you apply for auto insurance, your broker will ask if you are using the vehicle for business purposes. If you say no, and then drive for Uber or Lyft, that’s considered material misrepresentation (or lying), and can lead to a claim being denied and your policy being cancelled. That will lead to much higher rates for at least six years.
You may think that your insurance company has no way to find out, but if you ever have to make a claim, there might be an investigation.
In many cases Uber insurance isn’t much more than you pay now. Call for a quote to find out.
If Uber has insurance, why do I need special coverage?
There are lots of claims where there’s a dispute between insurance companies about whether the Uber coverage applies or the personal coverage applies. Inevitably, some Uber claims will end up being paid by the personal insurer, but they don’t collect any additional premium to account for that added risk.
That’s why only the insurance companies that cover Uber and Lyft want to cover the drivers personally. So if you’re not already covered by one of those companies and you want to drive for Uber, you may need to switch. It’s not really special coverage, but your current insurance may not suffice.
If I have ridesharing insurance, can I deliver food for Uber Eats or Skip the Dishes?
No. Ridesharing insurance only applies if you’re driving passengers. If you deliver food, that usually requires business auto insurance, which can be considerably more expensive.
Why is auto insurance for Uber Eats different than insurance for Uber?
The risks involved in carrying passengers and delivering food are very different. Drivers carrying passengers tend to be more careful and drive more calmly because they are trying to create a pleasant experience. Food delivery drivers are usually more motivated to get the food to the customer as quickly as possible, which leads to riskier driving. For this reason many insurance companies refuse to insure drivers who deliver food, or charge higher rates to account for the increased risk of an accident.
Being an outlet for over 70 of Canada’s top insurers means we have access to a wide range of insurance solutions at some of the best rates in Ontario. Want to learn more about the coverage options available to you? Here’s a few of them.