Ridesharing programs such as Uber are growing in popularity, but they introduced a slew of challenges for insurers, drivers and passengers alike.

On the one hand, Uber provides its UberX drivers with $5,000,000 commercial auto liability insurance that covers bodily injury and property damage. On the other hand, drivers are jeopardizing their own personal auto insurance coverage by using their vehicle for commercial purposes, which could result in many Uber drivers not being properly insured.

Drivers who use their own vehicles as essentially a taxi service are not covered under their personal auto insurance policies. If you are an Uber driver and you get in an accident your insurance could be void-especially in the event of non-disclosure. If your insurance is not void, you may lack sufficient coverage. Most insurers recommend a minimum of $2 million liability.

Provinces like Ontario operate on a no-fault system, which means regardless of who is at fault in a collision each driver must go through their own provider. Where Uber's commercial policy comes into play in this matter remains unclear.

Insuring the sharing economy

Intact has been working with Uber's Canadian insurance broker AON Reed Stenhouse to develop the rideshare insurance product. The details of this product are not currently available.