Want to be an Uber driver? Check with your insurance company first
Your provider may not allow for ride sharing, but if it does you'll have to pay
With the announcement of new legislative changes paving the way for ride-hailing services like Uber to operate in Newfoundland and Labrador, you might be thinking that sounds like a good way to make a few extra bucks.
But before you go there, you'll have to check with your auto insurance provider first.
Graham Little, interim vice-president of the Insurance Bureau of Canada's Atlantic region, said consumers may have to make changes to their existing policy — or get a completely new one.
"The standard auto policy in Newfoundland does not allow for any commercial use of a personal passenger vehicle," said Little.
If your provider does allow for ride-hailing — as ride-sharing, as Uber's publicity likes to describe it — it may add a commercial provision to your policy, or an endorsement specific to the service.
Both of those additions will hike your annual rate.
"I don't have a specific number because it would be quite specific to every individual driver," Little said. "In P.E.I. and in Halifax, where there are currently other ride-sharing companies operating, the endorsement or the commercial use provision isn't generally particularly expensive."
Little said failing to inform your insurer that you've started using your vehicle for a service like Uber or Lyft could potentially put you in a dangerous situation.
"I would say that on both sides, you want to make sure that the ride-share company, or the transportation network company, has their appropriate insurance in place and should make sure that all their drivers do as well because you could certainly find yourself in a very bad position if something were to happen," he said.
Ride-hailing services have been slowly making their way to Atlantic Canada, and even more slowly to Newfoundland and Labrador.
But Little said it's been a popular option in the Atlantic region so far, with more insurance companies looking at ways to make sure they have the proper coverage available for those who need it.
Safety first
Premier Andrew Furey said the provincial government has been aware for years that the province needs more local transportation options.
"Residents and visitors alike need to be able to get to where they want to go in a reasonable time, and safely," he said. "Ride sharing can provide that for us."
The province has implemented requirements to ensure safety for people who choose to use ride-hailing services, but they're not as cumbersome as similar requirements have been in the past for taxi drivers.
Sarah Stoodley, minister of Digital Government and Service N.L., said both taxis and ride-hailing drivers will still be required to have two years of driving history with a Class 5 licence, a medical, an annual vehicle inspection and an applicable insurance policy.
"We're going to amend the legislation to create an overarching provincial framework for ride-sharing. This means that any ride sharing company interested in operating in Newfoundland and Labrador would have one set of rules to follow," Stoodley said recently.
The province has gotten rid of the requirement for taxi drivers, and now ride-hailing services, to complete a written test and a practical road exam to obtain their Class 4 licence.
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With files from On the Go
