Ridesharing services like Uber and Lyft continue to expand across British Columbia, offering flexible income opportunities for drivers. But before you start accepting fares, it’s important to understand how insurance works—and whether your personal policy is enough. The truth is, ridesharing introduces a unique layer of risk that BC’s insurance framework handles differently than standard personal driving.
Once you accept a fare through the Uber app, Uber’s ICBC commercial coverage takes effect. However, while this provides some protection, there are important limitations to understand—particularly around liability and deductibles. In this article, we’ll explain how Uber’s coverage works, when it applies, and why obtaining your own policy remains the best way to protect yourself, your passengers, and your financial security.
For tailored advice, speak with a Park Insurance broker today.
How Uber Insurance Works in BC
In BC, all vehicles must carry basic auto insurance through ICBC. Uber has partnered with ICBC to provide additional coverage, but it only applies once certain conditions are met. Here’s how the layers of protection work:
- App Off: Your personal ICBC policy is in effect. Uber’s coverage does not apply.
- App On, No Fare Accepted: Limited third-party liability coverage applies while waiting for a ride request.
- Fare Accepted to Trip Completion: Once you accept a fare, Uber’s ICBC commercial policy activates. This includes up to $2 million in third-party liability coverage and accident benefits. However, a $2,500 deductible applies for vehicle damage claims under Uber’s policy.
While this may seem sufficient, it’s important to ask: Is it enough? For many drivers, higher liability limits and a lower deductible through a personal or commercial policy can offer stronger, more cost-effective protection.
Why Personal Auto Insurance May Not Be Enough
A standard personal auto policy is not designed for ridesharing or other commercial driving activities. Without proper disclosure and coverage, you could face serious risks:
- Coverage Gaps: If you’re logged into the app but haven’t yet accepted a fare, relying solely on personal coverage could leave you underinsured.
- High Deductibles: Uber’s policy carries a $2,500 deductible—significantly higher than most personal policies.
- Limited Liability Protection: Tourists and non-residents injured in a collision can still pursue legal action. Higher liability limits can help protect your assets.
- Disclosure Requirements: ICBC requires that you disclose if your vehicle is being used for ridesharing or other Transport Network Services. Failure to do so could void your coverage.
Why Getting Your Own Coverage is Recommended
While Uber’s ICBC policy provides a baseline level of protection, securing your own coverage is strongly recommended for full peace of mind:
- Lower Deductibles: Personal or commercial policies can reduce your deductible compared to Uber’s $2,500 default.
- Higher Liability Limits: Increasing liability coverage beyond $2 million offers added protection, especially given the potential for lawsuits from non-residents.
- Continuous Coverage: Your own policy ensures you’re covered between rides, during personal use, and in any gaps Uber’s policy doesn’t address.
- Reasonable Cost: Adding rideshare coverage or a commercial endorsement is typically affordable and provides a significant increase in protection.
Having your own coverage not only enhances your protection—it also ensures compliance with ICBC regulations and supports long-term insurability.
Key Takeaways
- Uber’s ICBC coverage applies only after you accept a fare, with $2M liability and a $2,500 deductible.
- Drivers must disclose to ICBC that their vehicle is used for ridesharing.
- Personal auto insurance alone is not sufficient for Transport Network Services.
- Purchasing your own coverage offers higher liability limits, lower deductibles, and full compliance.
Driving for Uber can be a rewarding opportunity, but it also comes with insurance complexities. Uber’s partnership with ICBC ensures basic protection once a fare is accepted, yet many drivers will benefit from additional personal or commercial coverage to reduce deductibles and increase liability protection. With tourists and non-residents still able to pursue legal recourse, it’s worth investing in a policy that leaves no gaps.
Before you hit the road, make sure your coverage matches your needs. Contact Park Insurance today to review your current ICBC policy and explore enhanced rideshare coverage that keeps you protected at every stage of your drive.
