Complete guide to car insurance for uber drivers and other rideshare services.
Since their inception, Uber, Lyft and other rideshare services have faced hurdles getting car insurance. Standard consumer car insurance policies would specifically exclude cover for vehicles being used to carry passengers for profit, leaving a severe dearth of cover.
To fill this, Uber takes out insurance on your behalf. However, these policies will only apply after your own cover and only include liability insurance.
Fortunately, insurers are now expanding their cover to offer options for Uber and other taxi-type rideshare drivers. You can tailor a policy to cover you while carrying passengers as well as driving for yourself.
What kind of car insurance do I need for ridesharing?
In Australia, you will need mandatory CTP insurance. To drive for Uber, you also need to hold a car insurance policy that includes third party property cover. You can get this with any of the standard policy types.
What kind of insurance does Uber provide?
Uber has its own insurance for drivers. This insurance comes with $20 million of injury and property damage liability cover.
- This will only apply if your required CTP or third party property insurance won’t pay out, or reaches its limits.
- It does not cover you for damage to your personal property.
- You will need to pay the excess.
Finding the right cover
The only way to find car insurance that covers damage to your car sustained while driving for Uber, including damage caused by passengers, is to look for comprehensive car insurance with a rideshare extension. This extension essentially undoes the “no cover for business driving” exclusion that applies to standard comprehensive car insurance.
Not all insurers offer this option, and if they do, not all insurers clearly highlight the option. You may want to simply pick policies as you normally would, then ask each of the insurers you’re considering whether they offer rideshare insurance and get quotes to compare.
If you’ve taken out financing to start driving sooner, then a condition of your financing may require you to get comprehensive car insurance. It might be possible to get cover without a rideshare extension, but it would leave a serious hole in your cover.
How much does the rideshare extension cost?
The cost of this addition will depend on how frequently you drive for Uber, Lyft or any other rideshare service as well as other factors that typically affect the cost of car insurance.
Do I need to get a rideshare extension policy?
In Australia, this is currently the only way to get a comprehensive car insurance policy that remains active while you are carrying passengers for payment as a rideshare driver.
How are Uber passengers covered?
Your passengers will be covered in several ways.
- Your CTP insurance covers medical and liability costs sustained by passengers in vehicle accidents while you’re driving.
- Uber’s insurance policy can cover passenger medical and liability costs only where your own insurance won’t. You will need to pay the excess.
Steps to get insured as an Uber driver
- Make sure you have mandatory CTP insurance. This is required for all driving.
- Choose between comprehensive car insurance, third party property only car insurance, or third party property insurance with fire and theft cover. You must have at least one of these to be an Uber driver.
- You will not be covered for any damage to your own vehicle that occurs while driving for Uber unless you choose comprehensive car insurance. This is because “rideshare extension” cover is only available with comprehensive policies.
- Compare policies by benefits and costs to find one that’s right for you. If you’ve opted for comprehensive cover, contact the insurers in order of preference and ask whether they offer rideshare cover, and get quotes for it.
- Sign up, and hit the road.
Insurers that 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 definitive guide to Uber here.
Rideshare car insurance
|Insurer information||Rideshare extension availability|
|RACQ||Available with comprehensive car insurance only|
|NRMA||Available with third party fire and theft, and comprehensive car insurance|
|Allianz||Available with all policy types|