UberX has received criticism for the insurance coverage it provides its drivers
Ride-share company UberX has generated some controversy in Canada concerning auto insurance. Toronto’s taxi industry has voiced concerns about the insurance coverage that UberX provides its drivers. Per the company’s policies, its drivers are not required to purchase commercial auto insurance. There are concerns that the company does not ensure that its drivers have liability coverage either, which could place drivers and their passengers in a risky position in the event of a major accident.
All rides on the UberX platform are covered by auto insurance
According to Uber Canada, the parent company of UberX, every ride on the UberX platform is insured for $5 million in contingent auto liability insurance. This coverage provides protection for bodily injury and property damage. There are concerns that the company is using private insurance for coverage that is commercially available. In Toronto, cab drivers are required to have commercial insurance coverage, but UberX is not held to the same standard as conventional taxi companies.
Freelance drivers may not understand the limitations of their insurance coverage
UberX hired freelance drivers to provide services to customers. Many of these drivers may not be aware of the limitations of the auto insurance that is covering them, however, which could place them at significant risk. Standard insurance policies do not offer coverage for vehicles transporting passengers for payment. Commercial policies offer such coverage, however.
The ride-share company has been the subject of controversy for some time, especially in the United States. There, Uber is facing criticism for the auto insurance coverage it provides for its drivers. The company has been the subject of legislative attention in some states, with lawmakers showing concern for the company’s policies and the coverage that it employs. Uber is not the only ride-share company that has been the subject of controversy recently. Lyft has also faced some criticism concerning the auto insurance coverage that it provides its drivers. Both companies have become a subject of ire for the traditional taxi industry.
