Thinking about joining a transportation network? Here's what you need to know about your Ontario auto insurance.
It’s a standard exclusion in personal auto policies in Ontario that you do not carry passengers for compensation. As we know, the times they are a changin’ and companies like Uber are alternatives to the traditional taxi industry, and of course, involve passengers and compensation.
Commercial insurance used to be the only way to go, but it can get quite expensive, and what if it’s only a part time gig?
Aviva Insurance has introduced an endorsement available for your personal auto policy to cover you should your calling in life be a part time ‘ride sharer’. The exclusion for carrying passengers for compensation is removed while “the driver is logged into the transportation network”.
What is a transportation network you ask? A digital network or electronic means that allows people to arrange to provide transportation for compensation is how Aviva defines it.
In short: an app.
To be eligible for this endorsement to be put on your policy, Aviva has a few stipulations for you. Seven, to be exact. Here they are:
- The vehicle is not used for more than 20 hours a week as a Transportation Network Automobile
- The vehicle is not driven by people not listed on the policy for transportation network purposes
- Driver must be licensed in Canada or USA for 6 years or longer
- Car cannot fit more than 8 occupants (incl. driver)
- Not used for any retail or wholesale delivery of goods for any commercial use, except carrying paying passengers
- Vehicle is not plated for use as a taxi, limo, or any other public transportation
- Logs from Transportation Network can be requested and must be provided to disclose hours that the vehicle was logged on and off the Transportation Network
How much will it cost?
Here’s a couple of ballparks for our area. Of course type of vehicle and driving history impact where you will fall within this range. These ranges are for 10 hours a week. Rates will increase if you’re working more than 10 and up to 20 hours/week.
- Great driver in Burlington $335-482/year
- Not-so-great driver in Burlington $ $586-844/year
- Great driver in Hamilton $583-840/year
- Not-so-great driver in Hamilton $1020-1469/year
- If you’re looking for additional info, give us a call!