Canadian Underwriter

Aviva introduces coverage for ride-sharing drivers

April 19, 2016   by Staff

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uberdriverAviva will launch auto insurance for Ontario Uber and other ride-sharing drivers in early February.

An addition to a driver’s personal auto policy, the coverage kicks in when drivers turn on the app to look for passengers and switches off when the passenger leaves the vehicle.

To be eligible for the coverage, drivers must be licensed for at least six years, can’t use the vehicle for other commercial activity and can carry no more than eight paying passengers at a time.

Read: Auto insurance for the ride-sharing world

Drivers are also limited to ride-sharing for 20 hours a week. Additional coverage will cost a small portion of his or her ride-sharing income, calculated through time spent driving paying passengers, his or her driving record and areas driven through.

“When consumer needs change, we must evolve our insurance solutions to respond,” Aviva’s president and CEO Greg Somerville said in a release. “We’re excited to offer a simple and affordable solution within a driver’s existing personal auto policy, thereby providing drivers and passengers with absolute peace of mind that they have insurance coverage while ride-sharing.”

Aviva will be working with regulators to bring the coverage to other provinces in later months.

In September, Intact announced it was tailoring coverage specifically for Uber drivers but has yet to announce a launch date.

Although Uber has said its $5 million insurance policies are adequate, coverage for Uber drivers has been a contentious issue.

In July, the Insurance Bureau of Canada said drivers who work for Uber should verify their vehicles are insured for commercial use. It said some policies provide coverage for only personal automobile use and insurers could reject a claim if the vehicle is used to generate income.

And last month, Wawanesa announced it asks clients if they drive for Uber and is cancelling policies of those who do.

This story was originally published by Canadian Insurance Top Broker.