Welcome to an exciting new chapter for Newfoundland and Labrador as Uber enters, offering both opportunities and challenges for those interested in ride-sharing. If you’re considering becoming an Uber driver, there are several vital points you must understand to navigate this journey successfully, especially regarding insurance.
The first and foremost consideration for potential Uber drivers is insurance. When you’re driving for Uber, you’re not just using your car for personal transportation; you’re using it for commercial purposes. Most personal auto insurance policies exclude coverage for commercial use of your vehicle. This means if you’re involved in an accident while driving for Uber, your personal auto insurance may not cover the damages.
Each Insurer Approaches the Underwriting on These Risks Individually
Insurance companies have different policies when it comes to ride-sharing. Some may offer an extension of your personal policy to cover ride-sharing activities, while others might require you to purchase a commercial insurance policy. It’s crucial to talk to your insurance provider to understand how they handle the underwriting for ride-sharing risks. Don’t wait until it’s too late to find out your policy doesn’t cover what you thought it did.
Food Delivery is Not Permitted
For those considering multi-tasking by delivering food or medication while also being available for ride requests, it’s important to note that this is not permitted. Uber’s insurance policy for Newfoundland and Labrador does not cover anything outside of ride-sharing. This means if you’re involved in an incident while delivering food or anything else, you could be left without coverage.
Uber’s Insurance Coverage Through Economical Insurance
The commercial auto insurance that Uber maintains on your behalf when you’re on a ride-share trip in Newfoundland and Labrador is provided by Economical Insurance. Here’s a breakdown of the protection it includes in case a covered accident occurs between accepting a trip and reaching the destination:
- $2 million of third-party liability coverage: Covers your liability to third parties from the moment you accept an Uber trip until its conclusion.
- $2 million of uninsured/underinsured motorist coverage: Protects vehicle occupants injured in an accident by a hit-and-run driver, an uninsured driver, or a driver without sufficient insurance.
- Loss or damage to a vehicle: From the moment you accept a trip until its conclusion, this policy covers loss or damage to the vehicle, subject to a $2,500 deductible. This coverage only applies if the vehicle is also insured for collision and comprehensive coverage on your personal auto policy.
- Coverage between trips: Newfoundland and Labrador mandatory accident benefits. Uber also maintains commercial auto insurance on your behalf during the time that you are available through the Uber app but have not yet accepted a trip. When applicable, the insurance provides $1 million of third-party liability coverage if your insurer denies coverage.
The certificate of insurance and a link to the policy itself can be found here.
Get Familiar with the Process Around Reporting a Claim While Driving for Uber
In the event of an accident or incident, knowing how to report a claim is crucial. Familiarize yourself with Uber’s process for claim reporting. Ensure you understand whom to contact, what information you’ll need to provide, and any time frames for reporting. Prompt and proper reporting can significantly impact the resolution of your claim.
Hit the Road
Uber’s arrival in Newfoundland and Labrador opens up new avenues for employment and transportation. However, navigating the waters of ride-sharing requires a keen understanding of the insurance landscape. By ensuring you’re well-informed about the insurance implications, you can make the most out of this opportunity while safeguarding yourself against potential risks. Remember, preparation is key to a smooth ride in the world of ride-sharing.
About Wedgwood Insurance
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