Rideshare and Uber Car Insurance
Looking for car insurance for ridesharing? Many car insurers will cover you as long as you let them know you're an Uber driver.
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In order to drive Ubers, you need a car insurance policy that will 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.
Compare rideshare insurance online
No insurance = no Ubering.
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 neighbourhood 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 expenses. 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.
- 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 car 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.
- 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 licence 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 does it offer? All drivers are covered by a contingent liability policy. This works alongside your own compulsory third party injury cover and can help cover certain personal injuries.
- Driving requirements. Your car must be road registered and insured for compulsory third party 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 insurance (otherwise known as Green Slip insurance in New South Wales).
- What insurance protection does it 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? CTP insurance is not enough with GoCatch; you need to have third party property (fire and theft) or comprehensive insurance.
- What insurance protection does it 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 CTP 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's licence.
- What insurance do I need? You need insurance for a minimum of third party property damage of $5 million. Make sure you let your insurer know that you want to insure your vehicle for rideshare purposes.
- Driving requirements. As well as adequate car insurance, you need to be at least 21 years old, have a smartphone, speak English, hold an unrestricted Australian driver’s licence, have or set up an ABN and have access to a four-door car in good condition.
- What insurance do I need? It’s the driver’s responsibility to make sure that they have a valid insurance policy for third party property damage with cover of at least $5 million.
- Driving requirements. Ingogo is available to licensed taxi drivers in Sydney, Melbourne, Brisbane, Perth and Adelaide.
- What insurance do I need? Third party property and compulsory third party insurance from a company operating in Australia so you’re covered for any loss, damage and claim of passengers. Rydo does not provide insurance.
- Driving requirements. You need to make sure you have a current driver’s licence from Roads and Maritime Services as well as a criminal background check.
- Fuel expenses
- Your rideshare platform’s fees
- Car insurance
- Car registration
- Repair and maintenance costs
- Cleaning costs
- Parking fees
- Depreciation on your car’s purchase price, if you are the owner of the car
- Rental fees, if you lease or rent the car
- Tolls that were not covered by your rideshare platform
- Mobile and Internet expenses, if you use your phone for ridesharing
- 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 towards your Uber requirement since they cover what TPPD does plus a lot more.
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:
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.
Uber does offer liability cover, but it's designed to exist alongside your own car insurance policy. Think of it like a safety net for Uber itself. 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. It will 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:
Will my current car insurance policy cover me if I start driving for a rideshare platform?
Not all car insurance providers cover ridesharing, so it might not. Check with your current car insurer to find out if it excludes ridesharing. Make sure you do this, otherwise you risk getting rejected for any claims made while you’re ridesharing.
You also need to let them know so that they can adjust your premiums. It’s likely that you’ll have to pay a little more because you’re using your car more often. If your provider doesn't cover ridesharing, or it does but you’re not happy with what it's charging you, use it as an opportunity to find a more competitive car insurance policy. The last thing you want is to start ridesharing and have your car insurance eat into your profits.
Do I have to tell my insurance I drive for a rideshare service?
Yes, if you drive for Uber or any other rideshare company, you need to tell your car insurance provider. If you don’t, your car insurance policy might be void and any claims you make will be denied.
Many insurers automatically exclude transporting passengers for money with a personal car insurance policy unless you let them know. If you are already a comprehensive car insurance policy holder though, many insurers will allow you to extend your policy to include cover for ridesharing services like Uber, Ola and DiDi.
But you need to let it know, as it will probably increase your car insurance premiums. This is because you’re now using your car to transport people for money, so there’s more risks involved, from potential legal fees if you’re involved in a crash to a passenger opening the door and causing an accident, down to the fact that you’re using the car more so there’s a greater chance of an accident occurring. You might pay more, but if something happens, you’ll be covered.
Can I claim my car insurance on tax?
Yes, you should be able to claim tax deductions on your car insurance alongside a bunch of other business expenses. These can include:
Make sure you keep receipts and bank records related to these expenses so that you can claim a percentage of them back come tax time.
What happens if I 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
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.
Does Uber affect your insurance?
Yes, driving for Uber or any other rideshare company will affect your car insurance. If you don’t tell your insurer that you Uber, you might have your car insurance policy made void and any claims denied.
Picture: Getty Images
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