Up until recently, the entire Uber universe in Ontario (its various products include UberX, UberXL, Uber Select, UberHop and UberPool) has operated largely unregulated. However, recent developments will offer some assurance to Uber drivers, passengers and the public when it comes to insurance coverage in Ontario.
On July 7, 2016, the Financial Services Commission of Ontario approved an automobile insurance policy through Intact Insurance Company that covers all Uber drivers, passengers and vehicle owners. The policy provides standard accident benefits and third party insurance coverage from the moment the Uber application is turned on by the driver.
Uber drivers and owners will automatically have insurance coverage commencing the moment the Uber application is turned on in their vehicle. The third party coverage is limited to $1,000,000.00 from the time the application is turned on until the time the driver accepts a trip. The coverage increases to $2,000,000.00 from the time a trip is accepted until the passenger exits the vehicle. Once the passenger exits the vehicle, the third party coverage again returns to $1,000.000.00 until the next trip is accepted by the Uber driver. The coverage applies across the entire spectrum of Uber products.
One thing to keep in mind is that Uber drivers/owners are not covered under the Intact policy when the Uber Application is turned off (i.e. when they are using their vehicle in their personal capacity).