Insurance structure tweaked for B.C. taxi drivers to help level playing field with ride-hailing
Credit to Author: Jennifer Saltman| Date: Thu, 30 Jan 2020 23:52:40 +0000
Taxi drivers will now be able to pay for vehicle insurance based on the number of kilometres they drive with passengers on board, an attempt by the B.C. government to level the playing field with the ride-hailing industry.
The insurance product has been developed over the past several months in conjunction with the Insurance Corp. of B.C. and the taxi industry.
Minister of Transportation Claire Trevena said the change is part of the government’s efforts “to ensure fairness and opportunity for those who make a living in the passenger transportation industry and the passengers they carry.”
According to a recent report on modernizing the taxi industry, insurance is a significant portion of taxi operating costs and a major concern for those in the taxi industry.
Taxi insurance in Vancouver can cost as much as $32,000 a year for a car and $34,000 for a van, before a safe-driving discount of 40 to 60 per cent. The rate structure is such that part-time taxis have to pay the same amount as full-time taxis or take out temporary permits each weekend.
The new insurance will be similar to what is available to ride-hailing companies, which pay for a blanket insurance that covers their drivers while they are giving rides and is based on kilometres driven and the zone in which a passenger is picked up.
The insurance will be available “in the near future” and drivers can choose to switch or keep their existing insurance.
Trevena said the ministry is also talking to the taxi industry and others to figure out how to make sure money from the 30-cent per-trip fee being charged on non-accessible ride-hailing vehicles “will help support a sustained and improved level of accessible vehicles on the road.”
No further details were provided, and it is still unclear how the money will be spent.
The Vancouver Taxi Association said this week that it will no longer subsidize drivers who have accessible vehicles, which means that drivers will be less inclined to operate the more expensive accessible vans.
It blamed the entry of ride-hailing companies Uber and Lyft into the market for the decision.
CLICK HERE to report a typo.
Is there more to this story? We’d like to hear from you about this or any other stories you think we should know about. Email vantips@postmedia.com.