Uber regulations should include insurance guidelines: report

Uber drivers should have more coverage options and cabbies should pay less

Ontario’s regulations for Uber should include closing the insurance gap, MaRS Innovation Labs notes in its Sharing Economy Public Design report.

Read: Auto insurance for the ride-sharing world

“Government should mandate adequate insurance but remove barriers to enable the rapid approval of new products,” the report notes.

Currently, Uber drivers in Ontario have just one insurance option––Aviva––while their U.S. counterparts can choose from a wider variety of policies with flexible premiums based on how the car is being used.

“These kinds of hybrid products are needed for the Ontario market.”

MaRS also recommends lowering the cost of commercial insurance for taxi drivers who pay up to $7,000 a year “for their exposure to risk, not necessarily their driving history.”

Read: Insurers should share stats on Uber endorsements sold: cabbies

It suggests offering taxi drivers lower premiums for good behaviour and encouraging the use of telematics.

Beyond insurance, the report recommends screening drivers and vehicles, redesigning training for both Uber and taxi drivers, rethinking the pricing model, sharing the cost of accessible rides, ensuring tax compliance and gathering data.

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