FAQs: Transportation Network Companies A TNC is a company that arranges transportation in privately owned vehicles for financial compensation that is paid to the driver and to the TNC.What is a transportation network company (TNC)?A TNC is a company that arranges transportation in privately owned vehicles for financial compensation that is paid to the driver and to the TNC. The TNC uses an online-enabled platform to connect passengers with drivers willing to use their vehicle to drive paying passengers. TNCs are currently operating in Toronto and Ottawa. Do drivers working for a TNC need additional auto insurance?The standard automobile policy excludes coverage if the vehicle is used to carry paying passengers. IBC encourages drivers operating their vehicle for a TNC to contact their insurance representative to make sure they have proper coverage. If a driver working for a TNC is in a collision, will the driver be covered?If the driver has purchased a personal auto insurance policy and uses his or her vehicle for TNC purposes, there will be coverage implications. Drivers who plan to use their vehicle for TNC purposes should contact their insurance representative to make sure they have adequate auto insurance. If drivers working for a TNC are asked to purchase additional insurance, how much will it cost?The cost of coverage will vary from company to company. In today's competitive market, IBC encourages consumers to shop around to find the best policy to meet their unique needs. Is IBC against the use of TNCs?IBC encourages all those operating a motor vehicle to ensure they have proper auto insurance. It is important they understand their policy and contact their insurance representative if they have questions. For further information, consumers can contact IBC's Consumer Information Centre. Related ServicesLending Your VehicleWhen you lend your auto, you also share your auto insurance. Typically, a guest driver is also covered under your policy. Should the guest driver cause a collision while driving your vehicle, your premium may increase.Distracted DrivingNearly 3 out of 4 Canadian drivers admit to driving distracted. You are 23 times more likely to crash if you text while driving.