Insurance Industry Warns That Uber Drivers Aren’t Properly Insured


According to one of the largest Toronto taxi insurers, a properly-insured Uber driver would be paying about $23,000 per year.

Philomena Comerford, president of Baird MacGregor Insurance Brokers, said that Uber drivers are essentially providing an unregulated taxi service. She said that these services would be paying about eight times the amount they would be paying on their personal vehicle insurance.

Comeford made the comments at a Toronto City Hall news conference on Thursday, July 30. The event was organized by the Toronto Taxi Alliance to argue that the upstart Uber ride sharing app and its drivers aren’t properly insured.

Uber has maintained that it provides adequate insurance for individuals who use the app, with a $5 million liability insurance policy. In a statement, Uber Canada spokesperson Susie Heath said:

“We have been very clear that every Uber ride is insured. We will continue to work with the provincial and municipal governments in Ontario to create permanent regulations designed for this new industry so that more Ontarians can access affordable, on-demand transportation options.”

Pete Karageorgos of the Insurance Bureau of Canada said that Uber’s policy only covers cases in which an accident occurs because of corporate neglect, not that of the driver. Karageorgos is a vocal support of the taxi industry and a critic of Uber. He said:

“All we’re here to do today is to give people information and have them be aware.

If your situation changes, you need to notify your insurance company and you need to be properly insured. Is the proper insurance more expensive? Yes it is. However, the risk is greater. So at the end of the day we’re here to advise, get the accurate information and make sure if there is a claim presented that your policy stands up for you, rather than seeing a situation where there are claims denied.”

Earlier this month, an Ontario court ruled in favour of Uber’s ridesharing service in Toronto. The court dismissed the city’s case to shut down Uber. Uber says they are excited to continue working with Mayor John Tory and Toronto City Council.

Are you going to continue to rise with Uber given these new revelations?

[via Insider Toronto]

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  • FragilityG4

    “The decision means that you can continue to use Uber’s safe, reliable, and affordable rides throughout Toronto.”

    Sounds very sweet but you forgot the main point of your article – Not properly insured.

  • johnnygoodface

    “She said that these services would be paying about eight times the amount they would be paying on their personal vehicle insurance”… using my calculator I get something like: 600$/yr x 8 = 4800$/yr, NOT 23,000$, unless it costs her about 2875$ (23000$/8) to insure her car, in which case I would never ask her to drive me somewhere!

  • Kent

    If this $23000 has to come out of a taxi drivers own pocket each year, seems like taxi drivers have it pretty damn hard.

  • andrewe

    I’m not sure where you live, but in Toronto (where uberX is increasingly popular) $2875 a year is near the average insurance premium.