Uber and Ridesharing Insurance in Ontario: What Drivers Need to Know

Updated October 2026

Ridesharing services such as Uber have become a common transportation option throughout Ontario. However, using your personal vehicle to transport passengers for payment creates insurance considerations that are different from ordinary personal driving.

Whether you are considering becoming an Uber driver or already participate in ridesharing, it is important to understand when your personal automobile insurance applies, when Uber's commercial insurance takes over, and what coverage limitations may exist.

Does Uber Provide Insurance for Its Drivers?

Yes. Uber maintains a commercial automobile insurance policy for eligible ridesharing activities in Ontario.

The coverage is currently provided by Economical Insurance, part of Definity Insurance.

This commercial policy is designed to protect drivers, passengers and vehicle owners during covered ridesharing activities.

However, the protection available depends on what the driver is doing at the time of an accident.

When Does Uber's Insurance Apply?

There are three important stages of ridesharing activity.

1. The Uber App Is Turned Off

When you are using your vehicle for personal purposes and are not logged into the Uber app, your own personal automobile insurance policy applies.

Uber's commercial ridesharing policy does not provide coverage during this period.

2. The Uber App Is On, but No Ride Has Been Accepted

When you are logged into the Uber app and available to accept a ride request, Uber's commercial policy provides coverage that includes:

$1 million in third-party liability coverage.
Standard statutory accident benefits.
Contingent collision and comprehensive coverage, subject to applicable conditions.

3. A Ride Has Been Accepted or a Passenger Is in the Vehicle

Once you accept a ride request, the commercial policy provides:

$2 million in third-party liability coverage.
Standard statutory accident benefits.
Contingent collision and comprehensive coverage, subject to applicable conditions.

This protection continues during the covered trip, including while travelling to pick up a passenger.

What Happens if Your Vehicle Is Damaged?

Uber's commercial policy includes contingent collision and comprehensive coverage.

However, this coverage is generally available only if you already carry the corresponding physical damage coverage on your personal automobile insurance policy.

For example, if you do not carry collision coverage on your personal automobile policy, you should not assume that Uber's commercial policy will pay to repair your vehicle following an at-fault collision.

The commercial policy currently has a $2,500 deductible for applicable collision and comprehensive claims.

This is an important consideration, particularly for drivers whose personal automobile policies have lower deductibles.

What About Accident Benefits?

Ontario introduced significant changes to automobile accident benefits on July 1, 2026.

Under the new rules, medical, rehabilitation and attendant care benefits remain mandatory, while several other benefits, including income replacement, are optional.

Uber's commercial ridesharing insurance provides standard statutory accident benefits, but drivers should not assume that optional accident benefits purchased under their personal automobile insurance policy will automatically apply while they are working through Uber.

For example, someone who is injured while driving for Uber may face financial difficulties if they are unable to work and do not have applicable income replacement coverage.

The interaction between personal and commercial automobile policies can be complicated, particularly when determining which insurer is responsible for paying accident benefits.

Drivers should review their coverage with their insurance broker before beginning ridesharing activities.

Do You Need to Tell Your Personal Insurance Company?

Yes. This is one of the most important steps for anyone considering driving for Uber.

Even though Uber provides commercial insurance during covered ridesharing activities, you still need a personal automobile insurance policy.

You should advise your insurance broker or insurance company that you intend to use your vehicle for ridesharing.

Your insurer needs to be aware of how the vehicle is being used and whether your personal policy is appropriate for those activities.

Failing to disclose ridesharing activities could create complications if you have a claim.

Can Your Insurance Company Refuse to Insure You Because You Drive for Uber?

Ontario's insurance regulator, the Financial Services Regulatory Authority of Ontario (FSRA), has introduced guidance addressing the treatment of rideshare drivers by personal automobile insurers.

FSRA expects insurers to review their underwriting and rating practices before January 1, 2027.

Under this guidance, insurers should not decline personal automobile insurance solely because a driver participates in a ridesharing program that provides commercial insurance coverage.

FSRA has also indicated that insurers should not charge an additional personal automobile insurance premium for ridesharing activities unless they can demonstrate additional risk to the personal insurance policy.

This is an important development for Ontario drivers who use their vehicles for both personal transportation and ridesharing.

However, drivers must still disclose their ridesharing activities, and insurers may continue to consider other legitimate underwriting factors.

What About Food Delivery Services?

Transporting passengers through Uber and delivering food or other products are not necessarily treated the same way for insurance purposes.

Different commercial insurance arrangements may apply depending on the platform and the type of delivery activity.

If you use your vehicle for Uber Eats, DoorDash or another delivery service, do not assume that the same coverage described above automatically applies.

Speak with your insurance broker to confirm the insurance requirements for the particular service you are providing.

What Should You Do Before Becoming an Uber Driver?

Before using your personal vehicle for ridesharing, consider the following:

Notify your insurance broker or personal automobile insurance company.
Confirm that your insurer permits the intended vehicle use.
Understand when your personal policy applies and when Uber's commercial policy takes over.
Review the collision and comprehensive coverage on your personal policy.
Consider whether the $2,500 commercial policy deductible would create a financial hardship.
Review your accident benefits and any disability insurance you may have.
Confirm that all regular drivers of your vehicle are properly disclosed.

Speak With Your Insurance Broker

Ridesharing insurance has evolved considerably since Uber first began operating in Ontario.

Although commercial insurance is available through approved ridesharing programs, drivers should not assume that every potential loss is covered or that their personal automobile insurance is unaffected.

At L.D. Dermody Insurance Brokers, we encourage anyone considering ridesharing or delivery work to contact our office before beginning these activities.

We can help you understand your personal automobile insurance coverage, identify potential gaps and determine whether your current insurer can accommodate your intended vehicle use.

Understanding your insurance before an accident is always better than discovering a coverage limitation after a claim occurs.

This article provides general information about ridesharing insurance in Ontario as of October 2026. Coverage is subject to the terms, conditions, limitations and exclusions of the applicable personal and commercial insurance policies. Insurance arrangements may change.