In recent years, people can offer services and receive remuneration across various platforms that are called “sharing economy”.
For example, if you offer paid ridesharing with your car on Uber or Eva coop, what should you know about car insurance policies? Here are some answers on how to be covered and avoid unexpected surprises in that context.
Activities to Declare
Auto insurance policies are designed to cover personal activities. To round off their monthly endings, many consumers are increasingly choosing to use their vehicle, as some platforms allow.
This significantly changes how insurers evaluate the risk.
If you choose to engage in this type of activity, it is important to declare it to your insurer to find out if it will accept to insure it and under what terms. If you fail to do so, you may not be compensated if a loss occurs.
Automobile Insurance and paid passenger transportation
Companies that offer remunerated passenger transportation (such as Uber or EVA coop) are now regulated by the Act respecting remunerated passenger transportation by automobile (ARRPTA). They must subscribe an automobile liability insurance and the Q.E.F. No. 48 endorsement.
When a driver is available to offer transportation services and an accident occurs, the endorsement provides that compensation for damage and will be paid out under the company’s policy, but in accordance with the coverage purchased by the driver under his personal auto insurance policy.
The policyholder who carries out this type of activity must also declare it to his insurer and needs to know that the insurance coverage he chose for his vehicle is also the coverage that applies if he has an accident while driving as a driver.
For more information about this, you can read the Paid ride-sharing blog.
