200 drivers get vehicle-for-hire insurance

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This article was published 15/03/2018 (2919 days ago), so information in it may no longer be current.

Nearly two weeks after ride-hailing services were given the green light to begin picking up Winnipeggers, almost 200 drivers have upgraded their vehicle insurance coverage to do it.

Manitoba Public Insurance spokesman Brian Smiley confirmed Wednesday that since March 1, nearly 200 people have purchased vehicle-for-hire insurance.

He said the Crown corporation can’t say which ride-hailing company the vehicles are insured for.

Earlier this year, the Public Utilities Board approved a plan by MPI to create a separate vehicle insurance class for drivers of ride-hailing companies.

MPI said the new program would allow drivers to pay different insurance surcharges based on four “time bands” that include various weekday and weekend shifts.

Each band would be five per cent above the vehicle’s all-purpose rate so, if all four bands were purchased, the maximum insurance surcharge would be 20 per cent higher.

MPI says the average premium for a private passenger vehicle — before surcharges — is $1,086. But if all four bands are purchased, the total insurance cost would go up by $217.44 per year or $18.12 per month for that same vehicle.

Ride-hailing giants Uber and Lyft immediately announced they were putting the brakes on setting up shop in Winnipeg because of the insurance framework set up by MPI.

But drivers for both Edmonton-based TappCar and Calgary-based Cowboy Taxi began driving passengers in Winnipeg on March 2, with TappCar saying it would have more than 50 drivers on that day and Cowboy claiming at least five.

Earlier this week, Cowboy Taxi’s Mo Benini told the Free Press they’re up to about 10 drivers.

TappCar could not be reached for comment, but two weeks ago the company said it was up to about 100 drivers.

“We’re getting more drivers,” Benini said. “We’re now getting up to par with the demand.

“And we’ve now had over 300 drivers download the app to apply. We’re waiting for their criminal record checks to come back and we have to verify their insurance before they sign up. They have to have the right insurance, criminal record check, and vehicle inspection.

“Hopefully, by the end of the month, we’ll have about 60 drivers.”

The taxi industry has said there are 1,600 taxi drivers and owners for the 415 cabs in Winnipeg.

kevin.rollason@freepress.mb.ca