Uber Insurance Problems: Ride at Your Own Risk
Uber is a ridesharing app that connects people with drivers in minutes. The company has been in the middle of countless legal showdowns across the world as it aims to disrupt the entrenched taxi industry. There remains a debate around the need for regulation and safety vs. reducing consumer prices. One of the main concerns is that UberX drivers are unlikely to carry the necessary commercial insurance to protect itself and its passengers.
Executive director of Municipal Licensing and Standards, Tracey Cook, has significant concerns that UberX contravenes city bylaws. In an email, Cook claimed that “The city is concerned that the UberX service may pose a serious safety risk to the public, including those who are signing on as drivers.”
Unlike regulated cab companies, drivers participating in ride-sharing programs (including Uber and Lyft) are not regulated to hold city-issued drivers licenses, take city-mandated training, put their cars through city-mandated inspections and incorporate certain safety equipment. With regulated taxi cabs there is some assurance that the vehicle and driver have passed the minimum safety regulations.
Despite some of the regulations ride-sharing tries to remove itself from, a major issue is that, in many cases, UberX drivers don’t have the necessary commercial insurance to cover passengers in the event of an accident. Co-president of Hailo North America said that “The research that we’ve done illustrates very clearly that drivers that are working in a ride-share situation do not have primary commercial insurance, which puts them at risk and the passengers at risk.” In Canada, personal auto insurance policies include the condition that the vehicle is use for personal use – with no commercial use permitted.
According to Uber Canada, “Every ride on the UberX platform in Canada is backed by US$5,000,000 of contingent auto liability insurance covering bodily injury and property damage. This US$5,000,000 of coverage is more than two times the standard requirement for taxi and limo insurance in Toronto”. However, the Insurance Bureau of Canada warns that personal car insurance won’t cover drivers if they’re in a collision or a passenger is injured, so drivers must carry commercial auto insurance covers.
It’s difficult to deny the importance of ride-share businesses such as Uber and Lyft. However, as ride-share grows in popularity, consumer safety will take top priority. While Uber provides a convenient alternative to taxis, remember that you may be riding at your own risk.
OUR TEAM
- Karan Joshi
- Alessia De Gasperis
- Amandeep Chawla
- Jeremy Tsoi
- Kimiya Razin
- Bilal Hashimy
- Qaisar Yaqub
- Shir Zisckind
- Jas Khehra
- Gray Sinden
- Shelly Bard
- Christian Brown
- Daly Canie
- Mohsen Heydari
- Tanveer Sohal
- Erin MacDonald
- Prianka Virdi
- Noah Brownstone
- Justin Kaminker
- Harinder S. Bhatti
- Craig Yargeau
- Kiran Birk
- Amit Singh
- Andrei Teju
- Maria Zahid
- Matthew Douglas
- Jacob Elyk
- Harry Gill
- Aria Nejatali
- Jesse Singh
- Kristina Olivo
- Egi Bano
- Ainsa Hepburn
- Cam Woolley
- Charles Thompson
- Alexandra McCallum
- John Sime
- Allan Cocunato
- Patrick Poupore
- Erika Henderson
- Marina Korshunova
- Brandon Handelman
- Regeena Alapat
- Ryna Kim
- Natalia Poliakova
- Isaac Zisckind
- Manpreet Bhogal
- Mathura Santhirasegaram
- Nikolai Singh
- Sandra Zisckind
- Jeremy Diamond
- Michael Blois
- Darryl Singer
- Nadia Condotta
- Tinashe Madzingo
- Megan Armstrong
- Veronica D’Angelo
- Corey J. Sax
- Scott Tottle
- Steven Wilder
- TJ Gogna
- Jillian Carrington
- Joshua Himel
- Simon Diamond
- Cory Rubin
- Simon Mariani
- Brandon Greenwood
- Basil Bansal
- Nastassia Ivanova
- Tania Fleming
- George Laloshi
- Patrycja Majchrowicz
- Diana Iakossavas
- Dior Africa
- Alex Ragozzino
- Liana Saccucci
- Richard J. Chang
Diamond & Diamond British Columbia Head Office
1727 West Broadway, Suite 400, Vancouver, British Columbia
Barrie
168 Bayfield Street
Calgary
1331 Macleod Trail SE, Suite 645
Edmonton
4246 97 Street NW, Unit 103
Halifax
1701 Hollis St
London
256 Pall Mall St, Suite 102
Oshawa
50 Richmond Street E, Unit # 108 B
Ottawa
955 Green Valley Crescent, Unit 315
Sudbury
31 Larch Street, Unit 300
Timmins
120 Cedar Street South, Unit 002A
Toronto
255 Consumers Road, 5th Floor
Vancouver
1727 West Broadway, Suite 400
Windsor
13158 Tecumseh Rd. E. Unit 3B
Additional Areas Served
Ontario
Alberta
British Columbia
Maritimes
© 2021 Diamond and Diamond Lawyers LLP. All Rights Reserved.