Intact Insurance is leading the way in bringing clear auto insurance options for Uber drivers, pointing to an easing of tensions between Ontarian authorities and the drive sharing company. One of Canada’s leading insurance companies, Intact has been in discussions with Uber with a view to creating a specialist insurance policy.
That was announced a week ago, although both companies are still coy on exact details or even when we will see this insurance policy come to fruition. However, it could finally bring to rest the growing controversy surrounding Uber, which has come under fire increasingly through 2015. So what does Intact’s potential policy promise?
Uber is controversial because governing bodies are struggling to find meaningful ways of regulating the service, with the city of Toronto even trying to get the company shut down. Ontarian city Waterloo proposed more measured regulations, but admitted it was hard to compile any serious stipulations because of the nature of Uber, which is almost a pseudo taxi service.
The company has courted more controversy thanks to its insurance model, which has a terms of service that says drivers cannot use personal insurance policies. However, Uber still accepts drivers using their own personal auto coverage despite saying they cannot do so. It is a grey area that has left drivers uncovered as they breach Uber’s rule and are not provided for by their own policies, as they should be operating with commercial car insurance.
Intact Insurance is now setting up to bridge that gap by offering a clear Uber specific policy that drivers of the service can use to stay covered both by their own provider and under Uber’s own coverage. Intact has not discussed the finer details of the coverage, although it is likely to be directly marketed to Uber drivers and could even mix in a personal policy to cover those who use their daily drivers with the service.
“With the growing popularity of the sharing and on-demand economy, we are adapting our product range to offer innovative solutions to meet the changing needs of consumers,” Louis Gagnon, president of service and distribution at Intact Financial Corp., said in a statement.
“Uber is excited to be working with Intact Financial, the leading Canadian provider of auto insurance, to develop an innovative insurance plan specifically tailored for ridesharing in Canada,” Ian Black, the general manager of Uber Canada, said in a statement.