With the consumer demand for ride-sharing services like Uber and Lyft continuing to grow, more and more people are opting to drive for these companies to make a little extra income. Becoming a ride-share driver however does come with its risks, especially pertaining to your auto insurance. As a driver, not only are you driving your car much more than you previously would, you are also absorbing responsibility for a revolving door of customers who crawl into your back seat. It is imperative to speak to your insurance broker and inform them of your new side hustle, as driving for a ride-sharing company adds a significant amount of risk to your policy. Your broker should be able help you get the coverage that you need to cover both the value of your vehicle and liability of your passengers.
Back in July of 2016, Uber unveiled its own coverage for those driving with the company in Ontario. The coverage is being provided by Intact Insurance, and is applicable to drivers for ride-share purposes, from the moment they accept a route, through to its completion.
With the increased risk that becoming a ride-share driver entails, insurance companies have begun to put policies in place for those wishing to drive for a ride-share company. Even with the coverage offered by Uber, it is important to ensure that your insurer is up to speed on the fact that you use your vehicle for such a purpose. Not only will they help to make sure that you have all the proper protection in place, but failure to inform them may actually result in a non-renewal or cancellation of your policy, as you have increased the amount of risk that your policy holds without their knowledge.
Majority of providers have additional premiums that can be added to your existing policy to cover the additional risk involved. While different providers may calculate the cost of said premiums differently, it is in your best interest to shop around and see where you can obtain the best coverage, for the best price.