There are rules to follow when carpooling is done for profit

Carpooling rules for BC

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If a profit is being made by the ride provider, it then becomes a transportation network service and there are many rules to follow.

Carpooling makes sense, there’s no doubt about it.

It cuts down on emissions, saves commuting costs, reduces congestion on our highways and helps us feel good for being part of the solution rather than part of the problem.

For the most part, as far as the law is concerned, true carpooling is relatively unregulated.

Problems arise when money enters the picture. Both ICBC and the Passenger Transportation Branch will become interested, as will the police, depending on the amount of money that changes hands for the ride.

If no money changes hands, ICBC does not require an insurance rate class change on the vehicle being used. If money is given to offset the cost, a vehicle owner may insure their vehicle in the rate class for its normal use, provided the passengers’ contributions do not exceed the cost of fuel, insurance, wear and tear, and/or parking for the trip and don’t include expenses for depreciation of the vehicle.

Their vehicle will only need to be rated for business use if the owner starts gaining financially from driving passengers.

The Passenger Transportation Branch advises that a private car pool vehicle, for example, a driver from the Fraser Valley who uses his vehicle to carpool a group to BCIT in Burnaby or a group of individuals who purchase a vehicle designated a carpool vehicle and individuals take turns driving the vehicle at specific times. Those types of vehicles are not captured under the legislation.

If a profit is being made by the ride provider, it then becomes a transportation network service and there are many rules to follow. The fines for not doing so are significant.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.