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.
Consider adding rideshare cover to one of these policies
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
A broker can give you quotes from these reputable brands:
Why take out rideshare car insurance?
No insurance = no Ubering.
So if you want to drive for Uber and get paid for it, you’ll need at least third-party property insurance. But you'll be happy you did, because with all that driving and all those people shuffling in and out of your car, it only takes one wrong turn to put you on the hook for thousands of dollars in damages.
You should even consider upgrading to comprehensive cover even though it isn't required. Your car is such an important business asset, and comprehensive cover will protect it.
If one of your passengers opens their door into oncoming traffic and it takes off the door, comprehensive cover will help you get your door replaced. If you’re driving in a strange neighborhood and cause a crash because you’re unfamiliar with the traffic patterns, you’ll be able to get your car fixed with minimal out-of pocket expense. It just makes sense.
Do all car insurance policies cover me for ridesharing?
No. Most regular car insurance policies won’t cover you for an accident if you were taking fares at the time. That's why you need a policy that very specifically states that it covers ridesharing.
What insurance company covers Uber?
|Insurance company||Policy that will cover you||Eligible drivers|
|Allianz||Available with all policy types||All rideshare drivers|
|NRMA||Available with all policy types||All rideshare drivers|
|RACV||Available with all policy types||All rideshare drivers|
|Bingle||Available with all policy types||All rideshare drivers|
|SGIO||Available with all policy types||All rideshare drivers|
|SGIC||Available with all policy types||All rideshare drivers|
|RACQ||Available with comprehensive car insurance only||All rideshare drivers|
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 kind of policy do I need to get?
It really boils down to what your ridesharing company requires you to have before you can become a driver. For example, Uber requires you to take out the following:
- Compulsory third party (CTP). Every registered car on the road is required to have this form of protection. It covers injuries you cause to others.
- Third-party property damage (TPP). This is the minimum amount of cover required to drive for Uber. This covers damage to other people's property.
- 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.
- 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
- 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
Together, these two forms of insurance protect everyone or everything you could injure or damage except for you and your own car (although your CTP will offer some help with your own injuries). Other ridesharing companies may have different requirements, so make sure you understand their policies completely before you start taking fares for them.
If you want protection for your own car, you'll need third-party fire and theft or comprehensive cover instead of TPP. These will count toward your Uber requirement since they cover what TPP does plus a lot more.
Does Uber offer any insurance?
They do, but it's designed to exist alongside your own car insurance policy. Think of it like a safety net for Uber themselves. Uber will cover you for injury or damage to your passengers and other people's property if your CTP or TPP doesn't go far enough to cover all the damages. They'll cover you for a total of $20 million.
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:
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.
Check out our guide to car insurance brokers for more details on how to find a good broker.
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:
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.