In our initial post about Intact/Uber ridesharing coverage, we included a list of outstanding questions about the product and its rollout. This second blog follows up with answers to continue the dialogue. 

What’s the recommended process for brokers when insuring a driver once they’ve disclosed they drive for Uber? How does a broker provide choice and appropriate coverage?
While Uber drivers, regardless of who their personal auto insurance is with, are covered under Intact’s commercial policy for ridesharing, possible gaps occur on the personal lines side. Insurance companies have different approaches to the do you use your vehicle for compensation question. When your client indicates they drive for Uber:

1. Speak to their personal lines insurance provider to ensure there’s no coverage gap.
2. Advise them of Intact’s commercial policy limits (base level Accident Benefit coverage) and compare what they have on their personal policy. Intact’s commercial policy doesn’t provide optional coverage, regardless of what’s included in a driver’s personal policy, other than Comprehensive and Collision which, with a $1,000 deductible, is only made available to drivers who have the coverage included in their personal policy.
3. If they’re insured with Intact, Novex or Jevco, there’s no change to their personal policy; however, brokers must add a note to their client’s file (instructions on how to do this can be viewed here).

What Uber services does the Intact/Uber solution include?
Intact’s commercial policy includes drivers in the following programs: UberX (low-cost option), UberXL (low-cost SUV), UberSELECT (higher end experience), UberHOP (commuting along popular routes) and UberPOOL (sharing your ride with other passengers). Drivers outside these services aren’t covered by the new policy – for example a driver in the UberEATS program, with an exception if they’re simultaneously participating in one of the programs outlined above. Uber offers additional chauffeured transportation services (UberBLACK, UberTAXI) that have their own commercial insurance; drivers participating in those programs aren’t eligible for coverage under Intact’s ridesharing policy.

Does an Uber commercial claim impact an AutoPlus report?
The claim may show up on an AutoPlus report. However, if a driver’s charged with a claim while participating in ridesharing with Uber, Intact will issue a letter to their personal auto insurer confirming the claim’s being charged to the commercial policy.

Is the cost of insurance transferred to Uber drivers?
The commercial policy is issued to the corporation of Uber – it’s Uber’s responsibility to pay the premium. How Uber absorbs or transfers this cost is unknown at this time.

How will other insurance companies evolve to support or compete with this personal/commercial hybrid?
We’re encouraging all insurers to find coverage solutions that protect ridesharing opportunities. What’s available today:
* Intact’s modified their underwriting guidelines for Uber ridesharing on personal auto insurance policies; brokers should be mindful that Uber is only one ridesharing company – these modified guidelines are exclusive to Uber.
* Aviva offers an endorsement in Ontario on personal lines auto policies, exclusive to Uber.

As the sharing economy continues to evolve, competition from new ridesharing services will enter the marketplace. We’d like all insurers to evolve in support of consumer preferences, and work to adequately protect drivers.

 

 

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