Auto insurance question raised about Uber coverage in Toronto

Toronto Canada Auto ride share Insurance Discounts

The ride share company may not be providing adequate protection to its drivers to operate in the Canadian city.

The Insurance Bureau of Canada has released a statement that has said that it is concerned that Uber, a ride share company in the country, is not providing its drivers with the auto insurance coverage that is required for them to be adequately protected for operations on the roads of Toronto.

Uber Canada has assured the public that its drivers are providing the safest transportation experience in the city.

In Toronto, Canada, taxi drivers are required to obtain a license, and commercial auto insurance, which is a more expensive type of policy than the personal coverage that most road users carry. Uber Canada has said that its own drivers are adequately covered by commercial policies and that Canadians can “rest assured” that this provides the necessary added protection over and above the personal policies that are carried by the individual drivers.

That said, the level of auto insurance coverage protecting Uber drivers has been called into question.

Toronto Canada Auto Insurance NewsAccording to the Insurance Bureau of Canada (IBC) director of consumer and industry relations, Pete Karageorgos, “It’s like Santa Claus — you hope it exists but you’re kind of skeptical.” The concern expressed by the IBC has to do with the balance between personal and commercial insurance coverage.

The IBC has said that it is not entirely clear whether or not drivers for UberX – who use their own personal vehicles in order to provide customers with rides, in exchange for a fare – are required to obtain commercial coverage in order to operate in a way that is comparable to taxi services.

Uber Canada has explained that in the incident that there is a collision during a trip involving an UberX driver, then Canadians can “rest assured” that any other motorists, pedestrians, or the passengers within the vehicle will be “well covered” by the commercial vehicle insurance that the company provides to its drivers, in addition to the personal insurance that the driver maintains on his or her own. This according to a spokesperson for the company, Xavier Van Chau, in an email.

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