Transportation network companies

Transportation Network Companies (TNCs) are organizations that provide pre-arranged transportation services using an online platform to connect passengers with drivers and their personal vehicles. TNCs include companies such as Uber and Lyft.

Drivers for a TNC should be aware that the standard personal auto insurance policy excludes coverage for vehicles used to carry passengers for payment or hire.

Insurance requirements for TNCs

Coverage by driving period

Auto insurance coverage for TNC drivers is based on four periods of vehicle use:

Period 0

What it is

Personal use; driver is not logged onto a TNC network for the purpose of providing transportation services.

Coverage

Coverage is provided by the TNC driver’s personal auto insurance.

Period 1-3

What it is

  • Period 1 is when a driver has logged onto a TNC network for the purpose of providing transportation services but has not accepted a ride request.
  • Period 2 is when a driver has accepted a ride request and is enroute to pickup passenger(s).
  • Period 3 is when passenger(s) are in the vehicle, being transported, and ending when the last passenger departs from the vehicle.

Coverage

  • TNCs can purchase insurance coverage to protect their drivers and passengers through a standard policy form, providing coverage through Periods 1-3.
  • Coverage is only provided when the TNC driver has been connected to the passenger(s) via the TNC’s online network.
  • There is no coverage for street-hailed passengers or when carrying cargo.
  • During Period 1, third party liability is limited to $1 million and there is no physical damage coverage for the TNC driver’s vehicle.
Insurance requirements for TNCs

Advising your personal auto insurance company

TNC drivers are required to advise their personal auto insurance company if they are driving for a TNC. Some additional coverage beyond the standard policy form may be available through the driver’s personal auto insurance company, or the policy may be cancelled if the insurance company does not cover this type of risk.

Get more information

More information about auto insurance for TNCs and the SPF #9 is available from the Alberta Superintendent of Insurance’s Bulletin 04-2016.

Get more information