Looking for car insurance for Uber drivers? Here's how to find the cover you need.
Uber and other rideshare services offer a quick and easy way for their drivers to earn extra money. However, what you may not know is that becoming a driver for a rideshare service could void your car insurance policy, as many ordinary car insurance policies don’t provide any cover when your car is used to carry passengers for profit.
The good news is that insurers are now expanding their cover to offer options for Uber and other taxi-type rideshare drivers. Here’s how to choose the best rideshare car insurance policy for you.
Why should I speak to a broker about rideshare insurance?
- 100% free consultation with an expert, with no obligation to sign up
- Your regular car insurance policy won't cover you for ridesharing
- Many policies won't cover you if you work more than 20 hours. This means you can't work full time!
- Rideshare insurance gives you your choice of repairer and handle the claims process on your behalf
Why take out rideshare car insurance?
On an ordinary car insurance policy, when you check the list of general exclusions you’ll see that no cover is available if you use your car to carry passengers for any sort of monetary reward.
You’re only covered for the private use of your vehicle, which is obviously a big problem for rideshare drivers and could cause any claims you make on your policy to be refused.
In response to the rise of Uber and other rideshare services, several insurers now offer a rideshare extension on their car insurance policies. By selecting this option when you buy a policy, you’ll still be covered if you drive your car as part of a ridesharing service. This ensures that you can access much-needed financial protection if you’re ever involved in an accident.
Some insurers only offer a rideshare extension with their comprehensive car insurance policy, but others also offer it on third party fire and theft and third party property damage policies.
Many insurers will not cover you if you’re a full-time Uber driver, instead only providing cover for part-time rideshare drivers.
How do I get car insurance for Uber drivers?
If you want to drive for Uber in Australia you must:
- Have compulsory third party (CTP) insurance in your state or territory of residence. This covers your liability for causing death or bodily injury to other road users in an accident.
- Have third party property damage car insurance cover. This type of cover provides protection when your vehicle causes damage to someone else’s car or property.
Uber also offers its own contingent liability policy for drivers. This works in conjunction with your CTP and third party property damage policy to provide injury and property damage liability cover, offering financial protection when your other policies won’t pay out or when their cover limits have been reached. You’ll also need to pay an excess for any claims under this policy.
What kind of car insurance do I need for ridesharing?
The exact type of car insurance cover you need for ridesharing will vary depending on two factors:
- The insurer you choose
- The level of cover you want
While there are several insurers that offer rideshare insurance extensions, some providers will only allow you to include this extension when you purchase a comprehensive policy. And if you want the high-level protection offered by comprehensive car insurance, then this will be the right option for you.
However, if you’re looking for third party fire and theft or third party property damage cover only, you’ll need to look for an insurer that allows you to add a rideshare extension to this type of policy.
What does rideshare insurance cover?
Rideshare insurance works in the same way as ordinary car insurance, but with the added benefit that cover also applies when you drive your vehicle to carry passengers for a ridesharing service like Uber.
After that, policy benefits vary depending on the type of cover you choose:
- Comprehensive insurance. The highest level of car insurance cover available, this policy covers you for loss or damage to your vehicle caused by collision, fire, theft, vandalism, storm, hail, flood and more. It also covers you if you damage someone else’s vehicle or property in an accident.
- Third party fire and theft insurance. This mid-level policy option covers you when your vehicle is stolen or damaged by fire, or if you’re responsible for an accident that damages someone else’s vehicle or property.
- Third party property damage insurance. The cheapest level of cover available, this policy provides cover for damage to someone else’s vehicle or property that you cause in an accident.
How do I find the right rideshare car insurance cover?
Keep the following tips in mind to help you find a rideshare car insurance policy that matches all your cover needs:
- Research rideshare insurers. Not all car insurance providers offer rideshare cover, so you’ll need to do some research to find out which companies can provide the cover you need. You’ll find more information about rideshare car insurance providers further down this page.
- Consider your cover needs. How much cover do you want for your vehicle? Do you want affordable cover that protects you against essential risks only, or would you prefer the peace of mind that a comprehensive policy offers?
- Find suitable policies. Some insurers only offer a rideshare extension on their comprehensive car insurance policies and not on any lower levels of cover, so you’ll need to find a provider that offers rideshare insurance with your chosen level of cover.
- Get quotes. It’s simple to apply for insurance quotes online, so obtain quotes for multiple policies to get a better idea of how much rideshare car insurance costs.
- Compare cover features. Don’t just choose a policy based on its price; remember to look past the premium to closely inspect the features each policy offers. Check out what’s covered, what’s excluded from cover, and what cover limits apply. This will help you determine which rideshare car insurance is the perfect fit for you and your vehicle.
- Consider expert help. Having trouble finding a suitable policy? You might want to ask an experienced insurance broker to help you find a car insurance policy that covers rideshare driving and meets all your other needs.
Why speak to a broker about rideshare cover?
Choosing car insurance can be a confusing task at the best of times. With so many different types of cover available, and a long list of insurers to choose from, finding a policy that’s both affordable and suitable for your needs can be a big challenge. Throw in the extra complication of finding a policy that covers ridesharing and the prospect of selecting a policy becomes even more daunting.
This is where an experienced and reputable car insurance broker can be a big help. Brokers have an in-depth knowledge of the Australian insurance industry and how different policies and cover features work. Your broker will assess your budget and cover needs before presenting you with a choice of suitable options from different insurers.
- You can find cover that’s right for you
- You’ll be protected when driving for a ridesharing service like Uber
- Your broker can answer any questions you might have about car insurance
- The process is quicker and stress-free
Check out our guide to car insurance brokers for more details on how to find a good broker.
Which insurers offer rideshare extensions?
A growing number of insurers are offering cover for Uber drivers. Currently, you can find the rideshare extension with providers including RACQ, NRMA and Allianz.
To help you compare the options, you may want to get quotes from each and then use the Uber earnings calculator to see how well different policies suit your budget. This calculator can help you compare earnings next to the costs of insurance premiums, car maintenance, Uber financing programs and more.
For answers to other questions, consider checking out our guide to Uber here.
Some insurers that offer rideshare cover
|Insurer||Rideshare extension availability|
|Allianz||Available with all policy types|
|NRMA||Available with all policy types|
|RACV||Available with all policy types|
|Bingle||Available with all policy types|
|SGIO||Available with all policy types|
|SGIC||Available with all policy types|
|RACQ||Available with comprehensive car insurance only|
Check with your insurer to find out whether it covers rideshare services and if so, whether there are any cover restrictions.
You may only be eligible for cover if you are a part-time rideshare driver, not a full-time driver. This may come with a specific time limit attached – for example, some policies will only cover you if you drive less than 20 hours a week.
What happens if you have an accident?
If you have an accident as an Uber driver, cover can be provided by the combination of insurance covers you have in place:
- CTP insurance can provide cover for death or injury to a third party
- Your rideshare car insurance policy can cover damage to another driver’s vehicle or property
- If you have a comprehensive rideshare car insurance policy in place, you’ll also be covered for damage to your own vehicle
- Uber’s contingent liability policy can provide injury and property damage liability cover for expenses not covered by your other types of insurance
Make sure you’re aware of any excesses that apply to your own car insurance policy and Uber’s insurance before making a claim.
How to report an accident and make a claim
If you’re involved in an accident while driving for a ridesharing service, you should first follow the normal protocol following a car accident. Check that everyone is safe, phone the emergency services if necessary, and take any reasonable steps to prevent any further accidents or damage.
Then you’ll need to follow a few simple steps:
- Collect information. Collect the name, address and registration details of any other drivers involved in the incident. You may also need to gather the contact details of any witnesses.
- Report the accident to your insurer. Phone your insurer to notify them of your claim, providing full details of the incident that has occurred.
- Tell your ridesharing service. You’ll also need to notify the rideshare company that you have been involved in an accident.
Both your car insurance provider and your rideshare service will be able to advise you on the next steps you need to take, including details of the information you need to provide and of how the accident will be covered by your insurance.
Other questions you may have about rideshare car insurance
How do I apply for rideshare cover?
The exact process varies between insurers, but you will typically be able to select the ridesharing option during the cover application process when asked if you use your car for business purposes.
How much does the rideshare extension cost?
The cost of this policy addition will depend on how frequently you drive for Uber, Lyft or any other rideshare service, as well as where you live and other factors that typically affect the cost of car insurance.
Do I need rideshare car insurance?
If you drive for Uber, Lyft or another ridesharing service then yes, you will need rideshare car insurance. Ordinary car insurance policies only cover private use of your vehicles and don’t cover you if you use your car to carry passengers for profit.
How are Uber passengers covered?
Your CTP insurance covers medical and liability costs sustained by passengers in vehicle accidents while you’re driving. Uber’s insurance policy can also cover passenger medical and liability costs where your own insurance won’t. You will need to pay the excess that applies to this cover.
Does rideshare car insurance also cover me for private use of my vehicle?
Yes. Private use is also covered.
Get the latest car insurance news
Record number of claims handled by Financial Services Ombudsman. Read more…