What is Ridesharing Insurance?
Ridesharing Insurance, otherwise known as SPF 9 coverage in Alberta, is insurance that balances the personal use and commercial use coverages for operaters of ridesharing services. According to the Insurance Brokers Association of Alberta (IBAA), the driver's risk is broken into 4 categories that reflect the personal/commercial exposure:
What is Ridesharing?
According to Wikipedia, the definition of ridesharing is:
Ridesharing is the sharing of vehicles by passengers to reduce vehicle trips, traffic congestion and automobile emissions. Types of transportation that are consideredridesharing include carpool, vanpool, and transit or public transport.
Common Ridesharing Companies
There are several companies competiting in the ridesharing space with more familiar names being Uber and Lyft. Some of the entrants in Alberta are:
- Uber
- Lyft
- Tappcar
- Keys Please
- Cowboy Taxi
Ridesharing Controversy
One of the main reasons that SPF 9 / Ridesharing Insurance is so important to the Province of Alberta, to consumers, and to the industry itself is that companies like Uber have faced numerous legal battles with municipalities over proper licensing. Traditional cab companies have also pushed back against ridesharing services becuase of the competitive threat they pose, but also, according to the cab companies at least, lower standards when it comes to passenger safety, insurance, and driver standards. There has been a tremendous amount of debate back and forth about the merits of these claims, but one fact cannot be ignored: consumer demand is high for ridesharing services. The convenience, pricing, supply of service providers, and more have made the services very popular Having the proper insurance in place protects both drivers, the companies they contract to, and most importantly, the consumer.
Who is Offering Ridesharing Insurance?
As of right now, First Foundation Insurance Brokers can offer Ridesharing Insurance through Aviva, Intact Insurance, and Pembridge for Uber drivers only in Alberta. We expect coverage to be available to other ridesharing companies both through Intact and other insurance carriers over the coming months and years, but no announcements have been made just yet.
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Where Can I Learn More About Uber Insurance?
The Superintendant of Insurance in Alberta has published a guide to SPF 9 Insurance for Uber (PDF).
Intact Insurance has published a document called the Uber Insurance Journey (PDF).