What is rideshare insurance?

Aside from CTP or Green Slip cover, which is a legal requirement to drive your own car, there are three main types of car insurance: Comprehensive, Third Party Property Damage (TPPD), and Third Party Fire and Theft (TPFT).

Some of the more popular rideshare app services requiring drivers to have insurance include (but are not limited to):

• Uber
• Ola
• DiDi
• Shebah
• Lyft
• MooVr

Most, if not all, of these services would require drivers to have at least CTP insurance and most likely a third-party level of insurance.

Furthermore, both Uber and Ola offer their own insurance for drivers and cover drivers for personal injuries that may occur while they’re on the job.

Your cover will depend on your insurance provider and the policy itself. If you’re covered for rideshare driving under comprehensive car insurance, you could be insured for things like damage to your vehicle and property, damage caused to other vehicles/property and weather-related damages.

Third-party policies cover damage you cause to other people’s personal property and vehicles, but not always for your own. However, some insurers do offer a small amount of cover for your own car with third party insurance.

Roadside assistance doesn’t provide a payout if your vehicle is damaged (or you damage other cars), but it helps keep your car moving. Roadside assistance can be taken out alongside third-party or comprehensive car insurance and sometimes bundled together in one single policy.

To drive any car on Australia’s roads, you must at least have CTP or Green Slip insurance cover. Beyond that, rideshare apps will usually convey whether they require a certain level of insurance coverage for their drivers prior to the commencement of work.

As well as the mandated CTP insurance, most services would also require you to have at least a basic level of third-party insurance. Keep in mind that rideshare platforms may also apply other eligibility criteria.

Other optional extras you may consider include windscreen cover and roadside assistance.

The amount you pay for insuring a rideshare car will depend on several factors, including:

• The market value of your vehicle
• The level of cover you choose
• The age, gender and driving history of listed drivers
• Where you park the car overnight.

You may find that rideshare cover may impact your insurance premiums and thus, your financial situation, as insurance providers consider this a different type of use of your vehicle compared to commuting and private use.

Not all insurance providers will cover ridesharing, which is why you must notify yours if you begin driving for a rideshare company. This is essential because:

1. If your provider does cover rideshare drivers, you could be covered for an incident that occurred while you were rideshare driving or offering your car for any car-sharing services.
2. Your provider will be able to adjust your premiums to accurately reflect how you use your car.
3. You’ll have the opportunity to compare and switch car insurance providers so that you have peace of mind that you have the cover you need.

In any car insurance policy, it might be a good idea to look into cover for damage you may cause to another person’s vehicle or property and whether any damage to your own vehicle is also covered.

When comparing car insurance quotes as a rideshare driver, you may want to look for benefits such as a hire car following an insured event.

Keep in mind that many rideshare services require you to have a vehicle that was manufactured in at least the last decade, which means you probably paid a decent price for it. If you’d prefer to be fully covered for the cost of repairs or replacement for your car and damages to any other parties, then comprehensive cover could be a better option for you.

You can view the inclusions, payout limits, exclusions and other key terms in the relevant Product Disclosure Statement. You should always read this policy document and the Target Market Determination (TMD) before you buy any insurance policy to determine if it’s right for you.

It’s not an ideal scenario, but it’s one you need to be prepared for. If you’re involved in an accident while driving for your rideshare service, the first thing you always need to do (even when not rideshare driving) is call for emergency services (dial 000) if they’re needed.

Make sure you gather the contact details of other drivers and any witnesses at the scene. You’ll then need to notify your car insurance provider to provide them with this information and make a claim (if needed). You also need to contact your authorised representative at your ridesharing service to inform them about the accident.

The rideshare platform you drive for may have support and counselling services in place to help you after you experience an accident while driving for them.

While you can’t claim back car insurance premiums, they can be taken into consideration when claiming expenses involved with rideshare service.¹

The most common costs involved with rideshare driving range from:

• Petrol
• Fees charged by your rideshare platform
• Parking fees
• Tolls that otherwise weren’t covered by your rideshare platform
• Lease payments on the car you use to drive for a rideshare platform
• Depreciation of your relevant assets (e.g. your car).