Do I Need Ride-Share Insurance?

Ride-sharing is a common way to get to where you need to go. It can provide a quick commute to work, a ride home from the airport, or a lift across the city in a private vehicle. You may split the cost by sharing the ride with others or decide to pay a little more to have the comfort of the backseat all to yourself. You can even choose the type of vehicle you want to ride in – all within seconds and right at your fingertips.

The compelling part about ride-sharing is that it does not have to be arranged well in advance. Ride-share services use apps that conveniently enable customers to select their pick-up and drop-off spots. The app scans for near-by drivers who may arrive to pick you up within minutes – and just like that, you can get to where you need to go.

Like others, you may use ride-share regularly and may already be familiar with how it works. However, what do you know about ride-share from an insurance perspective?

Do you need ride-share insurance as a passenger?

To begin with, there is no need to purchase a separate insurance package for being a passenger in another person's car. If you are injured as a passenger, you may approach your own insurer for coverage, subject to provincial limitations and differences in the law related to accident benefit claims. However, this means that you must own or drive a vehicle and have your own insurance active coverage.

Do you need ride-share insurance if you don’t already have auto insurance?

If you do not have a policy, and you happen to be in an accident as a passenger, you would then, in principle, make an insurance claim against the owner's insurance policy. If the driver does not have an insurance policy, or is not covered by a commercial policy, then there would be no coverage to claim against. This would be a worst-case scenario. Fortunately, ride-share drivers are required to have their own personal insurance.

The bottom line: ride-share insurance isn’t necessary

To sum up, as a passenger, you do not need to purchase ride-share insurance separately. Your own insurance policy or the owner's policy could provide coverage. Make sure you familiarize yourself with your coverage, or speak to a TD Insurance Advisor if you are uncertain. Happy ride-sharing!