The city of Toronto will vote this week on a new legislation that would change licensing rules to accommodate ride-sharing companies like Uber. The bylaw will have several stipulations for Uber drivers to obey, including holding sufficient (commercial) auto insurance coverage. Taxi drivers are saying Uber cannot be trusted to be honorable and drivers should have to prove they have the requisite insurance.
The most ferocious opposition to Uber across Canada has been provided by the taxi industry, which sees the proposed Toronto law as favoring the US ride-sharing company. However, an auto insurance law that would mean Uber drivers would have to stop riding uninsured has been praised. Currently the company’s drivers operate on personal insurance policies that are not sufficient coverage for commercial activities.
Commercial auto insurance or Aviva’s bespoke ride-sharing coverage is needed and currently passengers and drivers will not be able to claim in the event of a collision. Toronto is going to make it a law of using Uber that drivers must have adequate coverage to work for the company. However, should these drivers be trusted to obey the rule?
The Toronto Taxi Alliance thinks not and argues Uber drivers should be forced by law to prove they have the correct auto insurance before being allowed to work for the company. The TTA says taxi drivers have to prove their insurance, and so should Uber drivers, otherwise the system would simply be unfair.
Aviva Canada’s option is likely the best bet for Uber drivers as it is an affordable addition to a personal policy and will not cost the near $10,000 cost of commercial insurance. However, Aviva’s plan is limited to drivers who work 20 hours or less, which is actually most of Uber’s Toronto workforce. Some work more though, and even so it is widely believed that many are even ignoring Aviva’s elegant solution.