The premiums you pay for this type of car insurance will vary – whether as part of a standard policy or an optional extra. Premiums are calculated using several factors unique to you, so they will likely differ to that of your family, friends and other road users.
Factors determining a premium can include, but aren’t limited to:
You may find that rideshare cover will impact your insurance premiums and thus, your financial situation, as insurance providers consider this a use of your vehicle compared to commuting and personal use.
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:
It may not; 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 for three reasons:
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 those of the other party’s, 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 document 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 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.
1 Australian Government: Australian Taxation Office – Income and deductions for ride-sourcing. Last updated September 2020. Accessed July 2022.