Uber in Waterloo Region

[ookpik]

It's the same as personal auto insurance, where rates are (partly) based on the length of the commute.  They don't ask for any evidence when you buy the policy, but they can do that when you make a claim.

Yes, of course. But there's no ubiquitous technology for recording personal vehicle use. (Yes, as mpd618 points out the technology exists. But it's not widely used. Yes, some insurers now offer discounts if you let them install an OBDII-based monitor in your car. But again this isn't yet in wide use.)

The point I'm trying to make is that with Uber and other ride-sharing systems the necessary data is already being recorded for every driver. There's no added cost to install a monitor, to obtain that data, and there's no added invasion of privacy. It's already happening. So why not use that data rather than rely on the driver's best guess? Using this data would allow the insurer to charge premiums that most accurately reflect the risks they're insuring. Surely that's to the benefit of all parties involved. Why revert to previous century underwriting protocols?

A secondary point is my general aversion to post-claim underwriting, i.e. the practice of doing underwriting due diligence only after the client makes a claim, then denying that claim on any flimsy pretext. This is grossly unfair because it exposes the insured to the risk of claim denial for not having filled out the application form correctly or for failing to notify the insurer of some change of use even if this was inadvertent or due to a misunderstanding. I can understand why this was necessary in the previous century. But as our Prime Minister recently observed, maybe we should change old practice "because it's 20156." (Same thing with travel medical insurance. They take your money up-front. Then when you make a claim they look for "pre-existing conditions" and other facile excuses to deny your claim.)