Passenger transport: is your car insurance enough?

The sharing economy makes it possible for people to earn extra income by providing certain services—such as driving using the Uber or Eva platforms. Before starting these activities, it’s best to check with your insurer that you have the right coverage. Here’s why.

Public transportation platforms and auto insurance

Since 2019, the Act respecting remunerated passenger transportation by automobile requires companies operating public transportation platforms to subscribe to automobile civil liability insurance. It must be accompanied by the Q.E.F. No. 48 endorsement, which provides certain clarifications and modifications to the coverage.

In short: if a driver registered with one of these platforms is involved in an accident while working, the compensation is paid by the operating company’s insurer. However, the coverage that applies is the same as the one the driver has selected on their personal automobile insurance policy. If this protection is not sufficient, the driver will have to pay for the loss themselves.

Declare your activities to your insurer

Your automobile insurance policy is based on certain criteria, such as your annual mileage, your region, your driving experience and your personal use of your vehicle.

If you choose to use it as a means of passenger transport, the risk of an accident could increase, in particular because of the number of kilometres you drive or because you drive more often in the evening or at night.

For this reason, it’s important to declare to your insurer your intention to undertake such commercial activities with your personal vehicle. Your coverage can then be adjusted to properly protect you in the event of a loss.

Remunerated transport and Claims History Statement

What happens if you are involved in a fender bender or collision while transporting people on behalf of a public transportation platform? The company’s insurer pays you a compensation based on the coverage in your personal automobile insurance policy. Next, they are required to add this event to your record in the Fichier central des sinistres automobiles (FCSA), a database that lists all road accidents that have occurred in Quebec over the past six years.

This database, used by insurers to establish your premium, includes all the claims that you were involved in, both in your personal and professional life.

 

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