They’re the saviour of many a late-night reveller, but if you’re thinking of jumping on the ridesharing bandwagon, there are some things you need to know about insuring your car.
Rideshare insurance isn’t technically a stand-alone car insurance product, but certain policies will cover the use of your vehicle for this purpose. Some providers may simply extend their policy coverage to include ridesharing under their usual car insurance policies. This excludes taxis and hire cars.
However, be mindful that many insurance policies won’t cover your car when you use it to ferry passengers around for money. When you first buy car insurance or change the way you use your vehicle, it’s important to tell your insurance provider how the car is going to be used.
Aside from Compulsory Third Party (CTP) or Green Slipcover, 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).
Rideshare platforms require appropriate car insurance when you sign up to drive with them. For example, Uber and Ola require drivers to have:
Furthermore, both Uber and Ola offer their own insurance for drivers. and covers drivers for personal injuries that may occur while they’re on the job. These apps’ insurance for rideshare drivers (and passengers in the event your CTP insurance doesn’t cover them) may also cover specific counselling for drivers.
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 your own. Roadside assistance doesn’t provide a payout if your vehicle is damaged (or you damage other cars), but it helps keep your personal car moving. Roadside assistance can be taken out alongside third party or comprehensive car insurance and sometimes can be 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 commencement of work.
Other optional extras you may consider include Windscreen Cover and roadside assistance.
We’ve outlined the requirements of some rideshare apps in Australia below, but keep in mind that rideshare platforms may also apply other eligibility criteria.
| Rideshare app | Insurance requirements |
| Uber |
|
| Ola |
|
| DiDi |
|
| Shebah |
|
| GoCatch |
|
| Lyft |
|
| MooVr |
|
| N.B. List is accurate as of 18/07/2022 | |
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.
Thinking of becoming a rideshare driver, but need the proper insurance? You can get a quote for this type of cover through our fast, free and simple car insurance comparison service. All you have to do is enter in some details about your car (including that you intend to use it for ridesharing), and away you go!
Information on this page is up to date as of 17/08/2022
1 Australian Government: Australian Taxation Office – Income and deductions for ride-sourcing. Last updated September 2020. Accessed July 2022.
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