Insurance Bureau of Canada wants Uber drivers to make sure they are properly insured
The Insurance Bureau of Canada is advising drivers that work for ride-share company Uber to check their auto insurance policies. The agency suggests that drivers should ensure that their insurance policies provide coverage for their vehicles that are being used for commercial purposes. In most cases, however, conventional policies do not provide commercial coverage for most drivers, as these policies only provide coverage for vehicles being used for personal purposes. As such, they may be exposed to gaps in coverage that could place them at financial risk.
Steve Kee offers some insight into insurance coverage
Spokesman Steve Kee has highlighted the difference between commercial coverage and coverage for personal use. According to Kee, drivers with conventional auto insurance coverage that are involved in an accident could find their claims rejected, especially if they are using their vehicles to generate income. Uber drivers, in particular, may be exposed to this issue and may have to find additional coverage in order to cover the risks that they face.
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Alberta government has concerns about coverage provided by Uber
In Alberta, officials have warned drivers who use Uber that their auto insurance coverage may be lacking. Uber, however, has claimed many times that the insurance coverage that it provides is adequate for its drivers and any accidents that they may be involved in. The concern, however, is that this coverage only kicks in when drivers are actually transporting passengers. While Uber drivers are waiting for clients, or on their way to pick up clients, this coverage is not in effect.
Some drivers may be exposed to unnecessary risks
The Alberta Office of the Superintendent of Insurance has advised those using Uber to ask their drivers for proof of insurance. Uber is not the same as conventional taxi services, and Kee notes that those using taxis have little worry when it comes to vehicles being adequately insured. This is largely due to the regulations that govern the taxi industry, and ride-share companies have not yet become subject to such regulations.