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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.

What is ‘rideshare insurance’?

‘Rideshare insurance’ isn’t technically a product, but certain insurance policies will cover this activity. Some providers simply extend their cover to include ridesharing under their usual car insurance policies.

However, be mindful that most insurance policies won’t cover your car when you use it to ferry passengers around for money, as standard.

What types of insurance are available to rideshare drivers?

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

Car insurance providers may choose to include cover for ridesharing under all three levels or only under Comprehensive insurance (i.e. cover that covers both your car and others on the roads).

Rideshare platforms require appropriate car insurance when you sign up to drive with them. For example, Uber and Ola – Australia’s two most popular rideshare apps1 – require drivers to have:

  • CTP insurance
  • a registered vehicle, and
  • a minimum of TPPD insurance.

Furthermore, both Uber and Ola offer their own insurance for drivers. This insurance is designed to work with drivers’ existing car insurance policy and covers drivers for accidents that may occur while they’re on the job. The apps’ insurance for rideshare drivers (and passengers in the event your CTP insurance doesn’t cover them) may also cover specific personal injuries and counselling for drivers.

What does car insurance cover for rideshare drivers?

Your coverage will depend on your level of cover, your insurance provider, and the policy itself. For example, if you were covered for rideshare driving under your existing Comprehensive car insurance, you could be covered for things like damage to your vehicle and property, damage you cause to someone else’s vehicle/property and weather-related damages.

Is insurance required to be a rideshare driver?

To drive any car on Australia’s road, you must at minimum have Compulsory Third Party (CTP)/Green Slip insurance. Beyond that, rideshare apps will usually mandate certain types of coverage they require their drivers to have in place.

We’ve outlined the requirements of some rideshare apps in Australia below.

Rideshare appInsurance requirements
Uber
  • CTP/ Green Slip insurance plus TPPD insurance (at a minimum)
Ola
  • CTP/ Green Slip insurance
  • TPPD insurance (at a minimum)
DiDi
  • Class 26 CTP insurance (CTP cover for booked hire vehicles) in QLD
  • Comprehensive or TPPD insurance* in VIC and NSW
Shebah
  • Vehicle must be insured
  • Insurance provider must be informed that the vehicle is being used for ridesharing
GoCatch
  • TPPD, TPFT or Comprehensive; CTP alone is not enough
N.B. List is accurate as of 23/07/2020
* Not all policies may be suitable

Frequently asked questions

How much does insurance for ridesharing cost?

The premiums you pay for this type of car insurance (whether as part of a standard policy or as an optional extra) will vary. This is because premiums are calculated using several factors that are usually unique to you, so they will likely differ to that of your family, friends and other road users.

You may find that taking out insurance to cover rideshare activities will impact your premiums.

As a rideshare driver, can I claim my car insurance premiums on tax?

You must declare the income you earn from ridesharing on your tax return. Happily, there are some expenses incurred from rideshare driving that you may be able to claim back.2

While you can’t claim your car insurance premiums back, they can be taken into consideration when you claim on the costs involved with rideshare driving. You can claim on:2

  • 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; and
  • depreciation of your relevant assets (e.g. your car).
Will my current policy cover me if I start driving for a rideshare platform?

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:

  1. If your provider does cover rideshare drivers, it’ll ensure your coverage isn’t voided when you claim for an incident that occurred while you were rideshare driving.
  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 if you find your current one doesn’t offer the coverage you need.
What should I look for in an insurance policy that covers rideshare services?

In any car insurance policy, depending on your individual circumstances it might be a good idea to look into cover for damage you may cause to another person’s vehicle or property, as well as personal liability cover for any injuries or deaths you may cause (covered by CTP/ Green Slip insurance).

The costs resulting from these incidents can quickly run up into the thousands of dollars (if not more), so you’ll be thankful you have cover in place if these unfortunate scenarios ever happen to you.

That being said, 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 third party’s, then comprehensive cover could be a better option for you.

What should I do in the event of an accident?

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 ridesharing service to tell 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.

Get a quote for insurance that covers rideshare drivers today

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 19/08/2020

Sources

Google Trends, accessed August 2020
Keywords Everywhere, accessed June 2020.

1 Roy Morgan – Uber dominates but faces growing competition from Ola and DiDi in an expanding rideshare market. Press release. Published February 2020. Accessed July 2020.
2 Australian Government: Australian Taxation Office – Income and deductions for ride-sourcing. Last updated June 2020. Accessed August 2020.

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