Driving for Uber or Lyft? Your Personal Auto Policy Will Deny Your Claim

Driving for Uber or Lyft?

You want to make some extra cash in Toronto, Vancouver, or Montreal. You sign up for Uber or Lyft, turn on the app, and start driving.

A week later, you rear-end a car at a stoplight. You call your insurance broker to file a claim. The adjuster asks: "Were you using the car for ridesharing?"

If you say yes (or if they find out), your claim is denied immediately. Even worse, your policy might be cancelled for "material misrepresentation."

The "Commercial Use" Exclusion

Standard Canadian personal auto policies have a strict rule: No carrying passengers for compensation.

The moment you turn on the Uber/Lyft app, your vehicle status changes from "Personal" to "Commercial." Your standard policy does not cover commercial risks.

But Doesn't Uber Cover Me?

Uber and Lyft provide some insurance, but it is not a complete shield. While they cover you when a passenger is in the car, huge risks remain:

  • The "Phase 1" Gap: When the app is ON but you haven't matched with a passenger yet, coverage limits may be lower.
  • The Deductible Shock: Rideshare company policies often have a massive deductible (e.g., $2,500). If you crash, you pay the first $2,500 out of pocket.
  • Cancellation Risk: Most importantly, your personal insurer has the right to cancel your policy entirely if you didn't disclose the gig work. Finding new insurance after a cancellation is incredibly expensive.

The Fix: Rideshare Endorsement (e.g., OPCF 6A)

You do not need an expensive commercial trucker policy. Most provinces offer a simple add-on or specific framework:

  • Ontario: Ask for the OPCF 6A endorsement (Permission to Carry Paying Passengers). This closes the gap and protects your personal policy.
  • Alberta: Drivers typically need a specific SEF 6-series endorsement or a TNC-specific policy.
  • BC (ICBC): A Blanket Certificate provided by the rideshare company covers you while driving, but you must verify that your optional Collision/Comprehensive coverage extends to ridesharing.

The Cost: It is surprisingly affordable—often adding just a small monthly fee to your premium to gain full peace of mind.

Conclusion

Don't hide your side hustle from your broker. It is insurance fraud.

One denied claim can cost you $30,000 in repairs and lawsuits. Call your provider today and ask: "Do you offer a rideshare endorsement?" If they say no, switch to a company that does (like Intact, Aviva, or others supporting TNCs). It is the only safe way to drive.

Disclaimer: This article is for informational purposes only. Insurance regulations vary significantly by province (e.g., FSRAO rules in Ontario vs. ICBC rules in BC). Always consult your licensed insurance broker to confirm your specific coverage needs.