Do You Uber?

Be warned about possible insurance coverages if you are in an accident in an uber vehicle. Make sure your own insurance will cover you in case they don't have the best coverages. Particularly make sure you've got good underinsured TP coverage.

From the time a driver accepts a trip request through our app until the completion of the ride, our partners have $1 million of coverage for driver liability. We were also the first ridesharing request service to include $1 million of coverage for uninsured/underinsured motorists, meaning that passengers and drivers are also covered for injuries when another party is at fault and lacks sufficient insurance. This $1 million coverage from trip acceptance to drop-off is consistent across cities. This coverage kicks in regardless of whether the driver’s personal insurance applies to the trip. We have also added contingent comprehensive and collision insurance during trips, up to $50,000/incident with a $1,000 deductible.

All of that backstory is very important in understanding the debate happening across the country right now: who, exactly, is liable when a driver gets into an accident?

It's a question that strikes at the heart of how these companies self-identify. If they are just facilitating a relationship between a third-party driver and a user, as they claim they do as "technology companies," then they shouldn't be liable for much, if anything.

That leaves much of the insurance burden on the drivers, who are using their own personal cars and their own personal car insurance (PCI). What these drivers may not know, however, is that their PCI policy may not cover them if they're driving for Uber, Lyft, or any other "ride-sharing" app.

Despite the Lyft website describing their drivers as "your friend with a car," auto insurance companies see them as commercial drivers. If you have a PCI policy, insurers typically won’t cover an accident that occurs while you’re conducting a commercial activity.

Ab Initio
This Latin term means "from the beginning". An insurance policy may be cancelled 'ab initio' if the insurer felt that there had been a non disclosure serious enough to not wish to proceed with the policy at all. Normally the insurer would refund the premium paid.

Toronto police are getting serious about cracking down on UberX drivers in Toronto. Following a series of arrests earlier this month, 11 people have been formally charged with various violations of the Highway Traffic Act, including operating a taxi without the appropriate licence and driving without adequate insurance.

UberX allows any Canadian citizen or permanent resident over 21 years of age with a recent four-door vehicle, valid driving license and insurance policy to begin accepting fares. The controversial concept has come under fire from cities and taxi industry groups around the world. The City of Toronto launched legal action last November, citing "serious concerns" about the safety of UberX.

"Anyone driving as an UberX driver is doing so in violation of city bylaws at their own peril," Tracey Cook, Executive Director of Municipal Licensing and Standards, said at the time. It doesn't appear this month's action by police is related to the city's ongoing action.

Uber identifies itself as a technology company and says it doesn't have to comply with local regulations governing taxis. Drivers who qualify for the UberX program are covered by a $5 million company insurance policy, but are asked to check their own insurance will remain valid if they hit the road.

The arrests were all made on the weekend of March 7-9 in 12 Division in the northwest of the city.

I wouldn't worry about the price.