The Allstate Insurance Company of Canada announced on Monday that it has launched its personal coverage solution for drivers operating ride-for-hire vehicles within Alberta.
Effective Aug. 22, coverage will be available for eligible drivers through Allstate Canada in the form of an endorsement added to their personal auto insurance that extends coverage under the standard policy to vehicles that are used as transportation network vehicles, Allstate Canada said in a press release.
The announcement follows recent steps by the Alberta government to enable Transportation Network Companies (TNCs), such as Uber, to operate legally within the province. The provincial government previously announced that a new insurance policy for TNCs would be available to insurance firms licensed in Alberta as of July 1. The insurance solution – Alberta Standard Automobile Form – Transportation Network S.P.F. No. 9 (SPF 9) – for TNCs and their drivers has been approved by Alberta’s Superintendent of Insurance. It covers “all TNC drivers from the moment they log onto their TNC’s mobile app to provide rides for hire,” the government of Alberta said at the time.
Allstate Canada reported that their endorsement will close the gap that had existed by covering these drivers for the period when they log into their TNC network application to the time they accept a paying passenger (known in the industry as “Period 1”). Once a fare has been accepted the TNC’s commercial insurance coverage would respond to cover “Period 2” and “Period 3,” as per the government policy (SPF 9), to provide complete coverage for the ride.
“Allstate Canada recognizes the increasing need for this type of coverage as consumer demand and transportation network enterprises continue to grow,” said Dave MacInnis, vice president of product operations at Allstate Insurance Company of Canada, in the release. “The sharing economy is only going to continue to expand; the insurance industry needs to evolve with it to ensure we are meeting the needs of our customers.”
The Allstate Canada solution addresses coverage shortfalls for ride-for-hire drivers, which previously existed between private passenger automobile insurance and commercial insurance policies.
“We are committed to staying at the forefront of technological advancements and innovations,” stated MacInnis. “So when deciding what product Allstate Canada would offer, our goal was simple: It needed to be affordable, convenient and easy-to-understand coverage for consumers. I believe our product addresses the coverage gaps for TNC drivers and offers a straightforward and reasonably priced alternative for this growing venture. We are excited to offer a solution and peace of mind to drivers participating in ride-for-hire services.”