Why You Need to Have a rideshare Insurance | upcover

Are you considering using your car to drive passengers through rideshare companies like Uber or Ola as a side hustle?

Or perhaps are you even considering quitting your nine-to-five job to become a full-time on-demand driver and work on your own terms?

Becoming a rideshare driver has many perks. You’ll be able to work your own hours, get to explore your own backyard, meet interesting people and even make a great wage depending on the hours you work and the areas you choose to operate in.

Yet, there’s one thing many drivers don’t realise; their personal car insurance doesn’t cover them if they’re involved in an accident while driving passengers in exchange for money.

And if you were wondering ‘’do I need rideshare insurance?’’, the answer is yes for this very reason.

And to help you make an informed decision on the best rideshare insurance policy for you, we’ve listed below the best rideshare insurance carriers in Australia, along with information about their policies.

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What Is Rideshare Insurance?

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As mentioned, most personal car insurance providers won’t cover you in the event of an accident or incident while carrying passengers as an on-demand driver for rideshare companies such as Uber, Didi, or Ola. 

On the other hand, rideshare insurance is designed to cover you if you’re involved in an accident while on the job.

That’s why it’s essential to talk to your insurance provider and explain how you plan to use your car moving forward. This way, you can purchase the right insurance and opt for the right level of coverage. This will ensure a smooth ride-sharing experience for you and your passengers. 

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Types of Rideshare Car Insurance Policies

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Regardless of how you use your vehicle, whether for personal or commercial use, you need compulsory third party (Green Slip) insurance in Australia. This is a legal requirement, and any driver needs to hold it.

In addition to the Green Slipcover, there are three main types of car insurance policies for rideshare drivers.

• Comprehensive

Comprehensive car insurance is designed to cover you for loss and accidental damage to your car, along with damage your vehicle causes to other people’s vehicles. It can also cover you for weather-related damages. 

It’s the most popular insurance policy because it gives rideshare drivers peace of mind.

• Third-Party Fire and Theft (TPFT)

Purchasing third-party fire and theft insurance will cover you for any damage you cause to someone else’s property and damage caused to your car in the event of a fire or theft.

• Third-Party Property Damage (TPPD)

TPPD insurance covers you if your vehicle is involved in an accident and damages someone else’s property, but it won’t protect you if your car is damaged. Even though this insurance is the most affordable option out of the three outlined in this section, it’s also the one that offers the lowest level of protection.

While every rideshare platform has its own insurance requirements, most of them, including Uber, require drivers to have a registered vehicle and hold:

• CTP insurance
• A minimum of TPPD insurance

Note that Uber also offer their own insurance, including policies covering drivers for personal injuries occurring while on the job. But more on this later.

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Why Do You Need Rideshare Insurance As An Uber and Ola Delivery App Driver? 

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As mentioned before, if you damage someone else’s vehicle while driving passengers as a rideshare driver, your personal car insurance won’t cover you. This means you could end up forking out thousands of dollars to get your vehicle fixed. Not to mention the hundreds or thousands of dollars you could be losing in income while waiting for your vehicle to be fixed.

 What’s more, if one of your passengers is injured during the accident and submits a claim, your insurance won’t cover any of the medical and legal costs associated with the claim.

Now, even though some rideshare companies like Uber and Ola offer their own rideshare 

insurance, it’s important to read the fine print and ensure you understand what is covered and your amount of coverage. If you’re involved in an accident, and the costs of damages are over the amount the rideshare company you work through covers, you’ll have to pay the remainder. 

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The Best Rideshare Car Insurance Companies 

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Now that we’ve answered the question ‘’do I need rideshare insurance’’ as an on-demand driver, here’s a rundown of the best rideshare car insurance companies in Australia.

Upcover

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At Upcover, we specialise in protecting small business owners, freelancers, and gig economy workers like you. Our mission is to provide highly tailored insurance so that you can pick up and drive your passengers to their destination with peace of mind. Accidents happen, and our job is to ensure a smooth experience for you, your passengers, and anyone else involved if you ever sustain one.

Here are some of the things our rideshare car insurance includes:

• Vehicle loss or damage due to an accident, fire, hail, flood, storm, or earthquake, theft or attempted theft, and malicious damage. 
• Driver transportation 
• Personal property costs
• Third-party cover, including third-party death or bodily injury cover

Ola

Ola is upcover partner! Explore the rideshare insurance coverage we offer and get protected while using Ola platform.

Uber

As an Uber driver, you’ll need to hold compulsory third-party insurance (CTP) and third party property damage insurance (TPPD). That’s because, even though Uber offers its own rideshare car insurance, it’s not designed to be a stand-alone insurance and will only cover you if your CTP or TPPD doesn’t cover the entire costs of the damages.

GoCatch

With GoCatch, you need to have CTP and TPPD to ride. What’s more, GoCatch’s rideshare car insurance will cover you for third-party bodily injuries or third-party property damage when your CTP doesn’t. However, it won’t cover you if you experience any personal injury or property damage.

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How To Buy Rideshare Insurance?

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Here are some tips on finding the best rideshare insurance to match your cover needs:

• Do your research: Not all insurance carriers offer rideshare insurance. Besides, some rideshare companies will only cover you for specific claims or based on specific situations. Therefore, you need to choose your policy carefully and ensure it fills the gaps from the policy of the rideshare company you ride for.

• Define your cover needs: Do you only need cheap insurance protecting you from essential risks, or do you want peace of mind and would rather pay more for comprehensive insurance?

• Carefully compare cover features: Sure, the price of your insurance matters. Yet, you shouldn’t choose your rideshare insurance simply based on this criteria. Instead, carefully review what’s covered, exclusions, and cover limits. These factors will help you define the best insurance for you and your vehicle.

• Talk to insurance professionals: Looking for the best rideshare insurance can be overwhelming. The good news is that we’re here to help! Our team of experienced insurance professionals would be happy to guide you through the insuring process and help you find the best insurance for your needs. So, don’t hesitate to contact us should you need our help.

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How Much Does Rideshare Car Insurance Cost?

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The amount you’ll have to pay for your premiums varies based on specific factors, including:

• Your age and driving history 
• Your vehicle’s market value
• The level of coverage you opt for
• The location where you park the car overnight.

To find out more about how much rideshare insurance will cost you, don’t hesitate to jump on our instant quote generator. It’s designed to provide you with quotes instantly and allow you to secure your cover within minutes. 

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