A Big Step Forward in Ride-Sharing Insurance
Do you remember last year when Aviva Canada found itself in the news for cancelling auto insurance policies of Uber drivers? That was then and this is now. The insurance company that once took a hardline stance against ride-sharing drivers has recently developed a product designed specifically for them.
While other companies are considering a similar route, early indications are that Aviva Canada is the first to offer coverage to drivers and passengers using ride sharing services. This is a big step forward, both for the insurance and ride-sharing industries. For several years, insurance companies have been warning drivers that their personal auto insurance policy would not necessarily cover them if involved in an accident while participating in a ride-sharing program.
Coming in February, Aviva Canada will have coverage available for drivers in Ontario, with hopes of making it available in other provinces by the end of 2016.
In a recent statement, Aviva Canada president and CEO Greg Somerville had this to say:
“With ride-sharing on the rise, consumers have new options available to them, however there is a gap in insurance coverage which potentially leaves them without appropriate protection and benefits. When consumer needs change, we must evolve our insurance solutions to respond.”
This is not a new problem. In fact, it is something that insurance companies, ride-sharing services, drivers, and passengers have been dealing with for quite some time. Concerns regarding insurance have bogged down many cities that are searching for ways to better regulate ride-sharing services.
In other words, this is a welcome addition to the insurance industry.
Simple and Affordable
Aviva Canada is following in the footsteps of many United States based auto insurance companies that are already offering policies to Uber drivers. These providers include big name brands such as Geico, MetLife, and Farmers.
Somerville is excited about the new product for many reasons, including its simplicity and affordability. He added, “we’re excited to offer a simple and affordable solution within a driver’s existing personal auto policy, thereby providing drivers and passengers with absolute peace of mind that they have insurance coverage while ride-sharing.”
In terms of simplicity, it is nice to see Aviva Canada making this product available within a driver’s existing policy, avoiding the hassle of purchasing an additional policy.
While the company has yet to receive final regulatory approval from Ontario, it expects to apply for and receive the go-ahead in the near future.