Whether you’re driving for a rideshare service like Uber or Lyft or planning to rent a car for a weekend getaway, it’s important to understand how insurance works in these situations. Many assume their regular auto insurance covers them—but that’s not always the case.

Here’s a simple guide to help you avoid surprises and make sure you’re protected.

Rideshare Insurance: What Drivers Should Know

Thinking about driving for a rideshare company like Uber or Lyft? It’s important to know that your personal auto insurance policy likely doesn’t provide full protection while you’re working.

Rideshare companies do offer some insurance coverage—but it often only applies when the app is turned on and you’re actively driving a passenger. If you’re waiting for a ride request or using your vehicle for personal errands between rides, there may be gaps in your coverage.

Be sure to confirm the details of the coverage directly with the rideshare company, as policies can vary between providers and provinces. You may also need to consider a rideshare endorsement on your personal policy to fill in any gaps and ensure you’re fully protected at every stage of your driving activity. Speak to your broker about the specifications of your personal auto insurance.

Why it matters:

Without the proper coverage, an accident could leave you personally responsible for repairs, medical costs, or even legal expenses.

Renting a Car: What’s Actually Covered?

Renting a car for vacation, work travel, or while your own vehicle is being repaired? Insurance for rental vehicles can be confusing—but knowing your options can save you time and money.

Here are a few ways you might already be covered:

• Your personal auto policy: Many insurance policies include coverage for rental cars—but only if you’re renting in Canada or the U.S., and only for personal use. Always check with your broker before assuming you’re covered.
• Credit card benefits: Some credit cards offer rental car insurance if you pay for the rental with the card. But keep in mind, this coverage is usually limited to damage or theft—not liability or injuries.
• Rental agency insurance: The rental company will offer coverage at the counter, including Collision Damage Waiver (CDW), liability insurance, and personal accident insurance. While it adds to the cost, it can offer peace of mind if your existing coverage doesn’t apply.

When You’re Not Covered

Unfortunately, many people assume they’re insured when they’re not. Here are common scenarios where you might not be covered:

• Driving for Uber without a rideshare endorsement
• Renting a car outside of Canada or the U.S. without international coverage
• Using a rental car for business purposes without proper insurance
• Lending your rental car to someone else who isn’t on the agreement

The Bottom Line: Ask Before You Drive

The best way to make sure you’re protected? Ask your insurance broker before accepting a rideshare request or signing that car rental agreement. They’ll walk you through what your current policy covers, what’s missing, and whether you should consider temporary or extended coverage.

Insurance doesn’t have to be confusing—especially when you have the right team behind you.

Have questions about rideshare or rental car coverage? Call one of our knowledgeable brokers today at905-830-9000.

Disclaimer:

At ICD Insurance, we aim to provide accurate, up-to-date information. However, insurance needs vary, and coverage depends on specific policies, locations, and providers. This content is for general information only and may not fully apply to your situation. Please contact your ICD Insurance broker to discuss your specific needs and coverage.