Ridesharing and Insurance

Ridesharing is a taxi-like service generally offered through the use of mobile apps to connect drivers of vehicles and those seeking local transportation.   Here’s what you should know about automobile insurance coverage related to ridesharing in Prince Edward Island.

IMPORTANT INFORMATION FOR THE PUBLIC

In Prince Edward Island, personal auto insurance policies do not cover a vehicle when it is used to carry passengers for compensation. Therefore, all ridesharing businesses should ensure that they and their drivers have commercial automobile insurance coverage to protect drivers, passengers and pedestrians.

Passengers using ride sharing services should always feel safe.  Anyone using these services are encouraged to ask for proof of commercial automobile insurance coverage from their driver. 

RIDESHARING AUTO INSURANCE OPTIONS

Ridesharing businesses have two options to ensure their drivers have proper automobile insurance coverage.

Option 1:     Ride share business may advise vehicle owners to contact their insurance representative to obtain their own coverage. 

Option 2:     Ridesharing businesses may work with an insurer to design a product, which provides coverage to vehicles only during the periods the vehicle is actively engaged in ridesharing services.
  
Effective November 1, 2020, the Superintendent of Insurance approved a new standard automobile insurance policy form (SPF No. 9) for use in Prince Edward Island. The SPF No. 9 provides automobile insurance for Transportation Network Companies ("TNC") and authorizes their TNC drivers. For more information on SPF No. 9, please review the Transportation Network Companies - SPF No. 9 (Rideshare) Bulletin issued December 1, 2020. 

Under either option, vehicle owners should contact their insurance representative to discuss their involvement in ride sharing.