In order to drive Ubers, you need a car insurance policy that will actually cover you for ridesharing. There are now plenty of insurers that offer rideshare cover at very affordable prices. We've broken down some of them below.
What insurance companies covers ridesharing?
Why do you need to 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 policies cover me for Uber Insurance?
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.
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 (TPPD). This is the minimum amount of cover required to drive for Uber. This covers damage to other people's property.
- Compulsory third party insurance and a valid registration
- Third party property damage insurance
- Be listed as a driver on your insurance certificate
- Be over 21 years old
- Have a full valid license in the state you're driving in
- What insurance do I need? Ola requires drivers to have compulsory third party cover and third party property damage as a bare minimum but to be safe, you probably want comprehensive car insurance.
- What insurance protection do they offer? All drivers are covered by a contingent liability policy. This works alongside your own compulsory third party (CTP) injury cover and can help cover certain personal injuries.
- Driving requirements. Your car must be road registered and insured for compulsory third party (CTP) in the correct state or territory. It must also be insured for a minimum of third party property damage, and the driver must be the policyholder or named insured driver.
- What insurance do I need? As a minimum, you need Compulsory Third Party (CTP) insurance (otherwise known as Green Slip insurance in New South Wales).
- What insurance protection do they offer? Didi is rolling out a form of protection insurance for both passengers and drivers who use its platform. It's available on the app.
- Driving requirements. You'll need a full driver's licence, vehicle insurance certificate and current third-party damage or comprehensive insurance cover, on which you should be listed as an insured driver.
- What insurance do I need? All drivers are expected to have CTP or Third Party Property insurance as a minimum and notify their insurance companies once they become Shebah drivers.
- What insurance protection do they offer? Shebah offers InsureMyShebah coverage.
- Driving requirements. Shebah drivers must be female, speak comfortable English and have held an Australian driver's license for at least 12 months. You are required to have adequate insurance in place.
- What insurance do I need? CTP insurance is not enough with GoCatch; you need to have Third Party Property (Fire and Theft) or Comprehensive insurance.
- What insurance protection do they offer? GoCatch provides an insurance policy that covers liability arising from third party bodily injury or property in the event that the driver's personal Comprehensive Third Party insurance doesn't cover these two things. This does not protect the Rideshare driver for any personal injury or damage to their property (i.e. their car).
- Driving requirements. As well as all the necessary insurance documents, you will need a police check, vehicle inspection and unrestricted Australian driver license.
- What insurance do I need? You will be required to have Compulsory Third Party (CTP) insurance and Third-party property damage as a minimum.
- What insurance protection do they offer? You should also get a type of liability insurance when you sign up as a driver with Bolt.
- Driving requirements. As well as adequate car insurance, you will need a full driver's licence, vehicle insurance certificate and third-party damage or comprehensive insurance cover, on which you should be listed as an insured driver.
- 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.
- 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 TPPD. These will count toward your Uber requirement since they cover what TPPD does plus a lot more.
Do the platforms offer any insurance?
Most platforms will offer some kind of liability cover, but in most cases you'll be required to take out your own individual car insurance policy too. Here are the requirements of each rideshare company in Australia.
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 TPPD doesn't go far enough to cover all the damages. They'll cover you for a total of $20 million.
All Uber drivers for uberX, uberXL, uberSELECT and uberASSIST are covered by a liability program that provides $20 million in legal liability protection. All drivers must have:
Keep the following tips in mind to help you find a rideshare car insurance policy that matches all your cover needs:
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.
Other questions you may have about Uber car insurance
Get the latest car insurance news
Read more on this topic
Australian car insurers offer discounts amid coronavirus Which Aussie car insurers are offering cut rates or cashback?
PD car insurance See how PD car insurance policies stack up next to one another and what benefits they offer.
Qantas Car Insurance Qantas also do car insurance. Find out if they have a policy for you and earn points.
Comprehensive vs third party car insurance What's the difference between the two and which should you be looking at?
Battle of the rideshares: Uber vs Ola vs DiDi vs Bolt Which rideshare option is cheaper?
Car Insurance Renewal Guide to car insurance renewals.
30,000 Australians to get money back on add-on insurance ASIC orders six insurers to refund $14.7 million to Aussie consumers.
Kangaroo collisions cost Australians $6 million in insurance excess Huddle launches Australia's first "Kanga Cover".
ING Car Insurance Find out if ING Car Insurance has the cover you need.
Ask an Expert