Ridesharing has become an increasingly popular mode of transportation in Alberta, with companies like Uber and Lyft leading the charge. However, driving for a ridesharing service isn’t as simple as just hopping in your car and picking up passengers. One of the most important considerations is insurance. Here’s what you need to know about ridesharing insurance in Alberta.
Understanding Ridesharing Insurance
Ridesharing insurance is a type of auto insurance that covers drivers who use their personal vehicles to transport passengers for a fee. This type of insurance is designed to fill the gap between personal auto insurance and the insurance provided by ridesharing companies.
Why Do You Need Ridesharing Insurance?
When you’re driving for a ridesharing company, you’re using your vehicle for commercial purposes. Most personal auto insurance policies do not cover commercial use of a vehicle, which means you could be left without coverage if you’re involved in an accident while driving for a ridesharing service.
Ridesharing companies do provide some insurance coverage, but it may not be enough to fully protect you. For example, the coverage may only apply when you have a passenger in your vehicle, or it may be limited to liability coverage, which doesn’t cover damage to your own vehicle.
What Does Ridesharing Insurance Cover?
Ridesharing insurance typically provides coverage for three stages of a rideshare:
- App Off: This is when you’re not logged into the ridesharing app. During this time, your personal auto insurance policy provides coverage.
- App On, No Passenger: This is when you’re logged into the app but haven’t accepted a ride request. During this time, the ridesharing company provides limited liability coverage, but your own ridesharing insurance can provide additional coverage.
- App On, Passenger in Vehicle: This is when you’ve accepted a ride request and have a passenger in your vehicle. During this time, the ridesharing company provides extensive coverage, but your ridesharing insurance can provide additional protection.
How to Get Ridesharing Insurance in Alberta
Several insurance companies in Alberta offer ridesharing insurance. To get a policy, you’ll need to provide information about your vehicle, your driving history, and your ridesharing activities. The cost of ridesharing insurance can vary depending on these factors, so it’s a good idea to get quotes from multiple companies.
If you’re considering driving for a ridesharing service in Alberta, it’s crucial to understand the insurance requirements and ensure you have adequate coverage. Ridesharing insurance can provide the protection you need to drive with confidence.