How does Modo’s insurance work?

Modo’s fleet is insured up to $5 million under a Third-Party Liability policy from ICBC and is self-insured for damage to our own vehicles. Members are subject to a Damage Fee in accordance to their membership type for any damage that occurs to the Modo vehicle during their bookings. We know accidents happen, that’s why Modo offers options to cover the Damage Fee.

 

Do I have to pay for damage that occurs during my booking?

If the damage to the Modo is a result of an accident with another vehicle and the third party is deemed at-fault by ICBC, no damage fees will apply.  For all other damage incidents (Yes, that includes at-fault accidents, hit and run, vandalism and damage to the tires.) you will need to pay the Damage Fee.

Can I avoid paying the Damage Fee?


Members choose Damage Fee options when signing up online and can adjust them under their Account Settings at their convenience. There are two options available for members to reduce your out-of-pocket damage cost to $0:

Modo Damage Pool

Enrolling in the Modo Damage Pool reduces your Damage Fee to $0 for any damage that occurs during your booking. The Damage Pool is optional and covers all Modo vehicles. Members must be enrolled in the Damage Pool prior to an accident. The Modo Damage Pool is a pool fund shared by those enrolled to cover the cost of repair for damage to the fleet.

The process of pooling funds distributes the risks of coverage among many contributors. Once you’ve joined the pool, your $50 enrollment fee is amalgamated into the collective fund. Unlike a bank deposit, the funds are no longer linked to a particular person or account because they have been absorbed into the larger pool that is frequently being utilized for repairs.

The Damage Pool costs $50 annually (non-refundable) and expires after being used in the event of an accident. If you are in an accident whose cost to Modo is less than $1,000, then you can rejoin the Damage Pool for $50. If the cost to Modo is greater than $1,000, then you must wait two years before rejoining and will be required to make a $1500 damage deposit. That deposit can be returned after two years of damage-free driving.

Business accounts, Green Members and members using a Member Eligibility Declaration form to demonstrate eligibility are not eligible to join the Damage Pool.

How to join: Login to your account at bookit.modo.coop and click My Account>Damage Pool/Coverage to sign up.

Collision loss damage insurance (CLDI)


Reduce your Damage Fee to $0 by paying your Modo invoices with a credit card offering Collision Loss Damage Insurance (CLDI). Check with your credit card company to see if your card carries this insurance, then indicate on your Modo account online that you’re using your credit card’s CLDI coverage by setting up the card for automatic payments and enabling the CLDI option. By doing so, you will be declining the insurance and Damage Fees provided by Modo and indicating your preferred coverage option as CLDI for future bookings.

Please note: CLDI does not cover trucks, cargo vans and some specialty vehicles. Please check your insurer terms and conditions for details on exclusions. 

Exceptions


Of course, with all coverage, there are always some exceptions. Modo’s insurance is no different. Especially in instances that put people or our vehicles at risk. In such cases, both the Damage Fee cap and the Damage Pool are invalidated. As a reminder – and as per our Carsharing Handbook – you will be responsible for the full costs of the damage you cause to a Modo vehicle in the situations described below:

  • The Vehicle is damaged through improper use, for example, by moving cargo in and out of an undersized Vehicle or by an animal in the vehicle;
  • The Vehicle was used on a back country or forest service road, or any road or off-road area not generally used by regular passenger vehicles;
  • The Vehicle was left unsecured;
  • The Vehicle was used in the committing of a crime;
  • The Vehicle was used to transport explosives and/or flammables;

 

  • The Vehicle was used in a race, competition or comparable event;
  • The driver of the Vehicle was intoxicated;
  • The driver was speeding excessively;
  • The driver was charged with a vehicle-related offense under the Motor Vehicle Act or Criminal Code;
  • Unsuitable fluids were introduced into the Vehicle, such as diesel fuel into a gasoline powered vehicle;
  • The Vehicle was otherwise misused, or the driver’s behaviour was inappropriate in Modo’s sole determination;
  • The damage to the Vehicle was not reported to Modo;
  • The Vehicle was used to provide ride-hailing (passenger-directed) services.