UberX has been a trending topic in the news recently for its controversial competition with Taxi Associations, driver by-law infringements and safety.
Much has been talked about regarding the increasingly popular ridesharing program, but how does UberX and auto insurance relate? In an article by CanadianUnderwriter.ca, the Insurance Brokers Association of Ontario (IBAO) warns of the risks associated with ridesharing programs like UberX.
Although the concept of ridesharing is being embraced by many, “At this time, drivers and passengers should know that there is no existing endorsement for a personal lines policy that is available today that would guarantee them coverage or protection in the event of a collision during an UberX experience,” said Michael Brattman, IBAO President.
If an UberX driver does not inform their insurance broker or insurer that they are utilizing their personal vehicle for commercial use, coverage will likely not be extended if a claim should happen while preforming a drive for UberX.
The concept behind UberX is simple; an inexpensive and straightforward alternative, for both the driver and the passenger, to a traditional taxi. It you layer on the complexity of auto insurance and the lack of coverage that a driver would receive should an accident occur, or if the passenger is injured during an UberX experience, the situation suddenly becomes much more complicated.
Are the risks of an auto insurance claim that will likely not be supported by a broker or insurer worth the cost savings for the passengers and the profits made by the drivers? Roughley Insurance Brokers Ltd. suggests the risks outweigh the perceived benefits of UberX.
The IBAO and Roughley Insurance Brokers encourages finding auto insurance solutions that protect ridesharing participants. If you are an UberX enthusiast and you are looking for ways to protect yourself and/or your automobile, your broker can help.
To read the full article from CanadianUnderwriter.ca, click here.