Uber Toronto Auto Insurance Cost Higher than Predicted Says Shop Insurance Canada
April 14, 2016 (PRLEAP.COM) Business NewsApril 14, 2016 – Shop Insurance Canada, a leading online provider of auto insurance in Ontario, says that Uber and its drivers are facing higher than expected insurance criteria and the company may not comply with proposed regulations in Toronto.
The city of Toronto released a draft bylaw that if put into law would allow ride-sharing companies like Uber to operate legally in the city. However, auto insurance expert Shop Insurance Canada argues that the U.S. based company is unlikely to agree with Toronto's proposals, especially a requirement made by the city regarding auto insurance.
In the process of drafting the bylaw the city met with consultancy firms and were advised to create a law requesting non owned automobile insurance of $2 million, a figure Uber was also pushing for. Shop Insurance Canada points out that the city was never likely to go that low, but a $5 million coverage policy was expected.
Toronto surprised most when it said the figure for non-owned automobile coverage would be $7 million, which would consist of $2 million of collision and passenger hazard insurance, in addition to $5 million of commercial general liability insurance.
While Canada's largest city has been widely criticized by the taxi industry and its supporters for putting Uber and ride-sharing companies first, Toronto says it is creating a level playing field. Collision and passenger insurance is currently a requirement for taxi drivers and it will be the same for Uber operatives too.
Shop Insurance Company points to other cities that have created regulations and warns that Uber could leave Toronto entirely if the city's regulations are not workable for the company. That tactic has precedent in Calgary, where the San Francisco based company pulled out of the market when it said it was unwilling to adopt regulations.
So, Uber has shown it will drop out of a market if necessary, but that would be an aggressive tactic in the largest Canadian economy. Instead, the company would be more tempted to continue to operate outside regulation or try to work with the city to lower its insurance expectations.
About Shop Insurance Canada
Shop Insurance Canada is a Toronto based company that specializes in delivering the best auto insurance products to customers around Ontario and Canada. The online Ontario auto insurance quoting tool uses an engine that is easy to use and accurate enough to deliver the best auto insurance quotes from over 25 of Canada's leading providers. Shop Insurance Canada also offers expert advice on the auto insurance industry, as well as guides and news to help customers find the best deal possible.
Collision and passenger insurance is currently required by all taxi operatives in Toronto and the city says its draft bylaw is aiming to create a level playing field. Taxi companies have argued that it really means a level playing field to allow Uber to dominate the taxi industry, and is calling for harsher taxi-like regulations, including insurance.
The draft also included changes to fares, with cabs now carrying a $3.25 minimum fare and then $0.25 for every additional 143 meters and $0.25 for every wait of 29 seconds.