UberX and Ride Sharing: Does my car insurance protect me if I’m an Uberx driver? For most, it doesn’t!

Car insurance generally falls into two categories – personal use or commercial use. So what happens when I use my personal car for commercial purposes like being an UberX driver?

The short answer is that if you are using your personal vehicle for income generation, you are not covered unless the activity and coverage is confirmed by the insurance company. Most ride sharing drivers forget to advise their insurer of that activity. If they do consult their insurer they will learn that coverage is either very expensive or not available. Worse still, if they fail to advise their insurer and get into an accident, they could find their coverage “Null & Void”.

But things are changing. Some insurers are working on a hybrid insurance policy that the consumer can buy for their personal use vehicle and supplement the coverage with a commercial use endorsement priced according to their commercial activity. Aviva recently announced that coverage will soon be available to meet this need; Intact has been on a similar plan for some time.

Read more on Aviva’s plans in this Toronto Star article.