Uber ride sharing car insurance

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Car Insurance for Halifax Uber Drivers Explained

Published in Car Insurance

On Dec 3, 2020, Uber officially launched its ride-sharing service in Halifax Nova Scotia. Initially, the adoption of Uber was slower than usual due in large part to the lower demand resulting from Pandemic restrictions. With summer in full swing and COVID restrictions steadily being lifted, Uber is sure to experience strong growth in demand. Maybe you are already an Uber driver or perhaps considering it. Well, we got your Uber Halifax car insurance questions answered in this helpful blog.

Make sure you are well protected.

Like any ride-sharing or taxi service, being an Uber driver presents an extra layer of risk and liability. More people in the car means more risk and more potential liability for injury or damage should an accident occur. You must take the time to ensure you have the right car insurance for your unique Uber driving situation.

You need car insurance for your Uber ride-sharing business.

Step one, if you are starting an Uber ride sharing business, you must inform your car insurance provider or insurance broker that you are now using your vehicle for Uber. This will result in the requirement for two different protections — one while you’re on the road on your own time, and another when you are carrying passengers on board, or while on standby for passengers. Your personal auto insurance policy alone won’t cover lost income or even property damage since you are driving for commercial purposes other than personal transportation.

A separate ride-sharing car insurance policy covers you when you’re on the road for Uber. This starts when you’re logged into the app and waiting for riders, while driving to a rider’s pick-up location, during the entire trip, and back on standby again. While Uber provides a level of car insurance by enrolling drivers in fleet insurance, this coverage is only basic. It may not be enough to cover all the expenses following an accident.

How does Uber’s Automatic Insurance Coverage work?

Uber has partnered with a selection of insurance companies to provide automatic insurance coverage to their Uber drivers. This commercial auto insurance policy covers you from the moment you make yourself available to accept a ride or delivery in the Uber app to the moment the request is completed. When providing ridesharing, this coverage also helps protect your passengers from the moment you pick them up to the moment they exit your vehicle.
However, when you’re using your vehicle for personal use, you must rely on your own personal car insurance policy, which must be in force for you to drive with Uber.

What’s covered with Uber Drivers Insurance?

  • Comprehensive coverage protects you from property damage not resulting from a collision, such as a windstorm, hail, falling objects, or hitting an animal on the road.
  • Liability. If you are found to be at fault for an accident, this covers the cost of legal fees and settlements awarded to the third party, such as another driver or your passenger for injuries and property damage.
  • Collision covers property damage, such as repair and replacement parts as a result of a collision with another car or object.
  • Accident Benefits entitle you to resources for medical and rehab treatments, or lost wages if the injuries are extensive and require extended recovery time or worse such as a disability.

Key terms for ride-sharing insurance in Nova Scotia.

Rideshare companies like Uber are known as Transportation Network Companies (TNC). As part of the launch of Ride Sharing services in Nova Scotia, insurance companies developed insurance products to address the coverage gap when vehicles are used in ride-sharing or car-sharing. A standard car insurance policy form called SPF No. 9 was also approved for use in Nova Scotia –  which provides clarity on insurance for TNC drivers.

Make sure you and your Uber ride-sharing business are well protected.

Our Bauld Insurance Advisors will assess different policy options from our portfolio of car insurance providers and customize a car insurance policy for your unique situation. If you are looking for a ride-sharing car insurance quote, please visit our Car Insurance web page and complete a Car Insurance quote today.