Are you considering becoming a rideshare driver for a rideshare company like Uber or Ola?
Then you need rideshare insurance.
As a rideshare driver, it’s your responsibility to ensure the safety of your passengers. And, of course, as a business owner, you also want to protect your business, including yourself and your car. Unfortunately, accidents can happen, especially as you drive all day, every day.
Now, you might think that your personal car insurance covers you, your car, and potential passengers in case you experience a car accident.
Unfortunately, that’s not always the case.
So, to help you start off your rideshare business on the right foot, we’ve answered some of the most common questions about rideshare insurance below.
What Is Rideshare Insurance?
Rideshare insurance is a car insurance product designed to meet the specific needs of rideshare drivers. Just like your comprehensive car insurance protects you, your passenger, and your vehicle if you ever sustain a car accident or damage someone else’s vehicle, rideshare insurance will cover you while transporting passengers for monetary gains.
It’s a relatively new car insurance product that can be purchased as a standalone product or as an extension to an existing car insurance policy with certain providers.
What Type Of Car Insurance Do I Need As a Rideshare Driver?
In addition to compulsory CTP (or Green Slipcover), you might consider discussing purchasing one of the insurance policies below with your insurance provider.
As the name suggests, comprehensive insurance covers you for any issues that could arise while you perform your rideshare driver duties.
It will typically cover you for medical and liability costs sustained by passengers involved in an accident while you’re driving. It will also cover loss and accidental damage to your car and damage your vehicle causes to other vehicles.
Lastly, it can cover you for weather-related damages. Because it gives drivers complete peace of mind, it’s the most popular car insurance policy among rideshare drivers.
- Third-Party Fire and Theft (TPFT)
With third-party fire and theft insurance, you’ll be covered for any damage your car causes to other vehicles while you’re “on the job” and damage inflicted on your car in the event of a fire or theft.
- Third-Party Property Damage (TPPD)
Third-party property damage insurance protects you if your vehicle is involved in an accident and damages someone else’s vehicle. However, it won’t cover you if your car is damaged or if you’re injured.
Even though this is the most affordable car insurance option, it’s also the one that protects you the least.
Some rideshare companies will require you to hold specific insurance policies, so make sure to check the rideshare company’s requirements when applying.
What Does Car Insurance For Rideshare Drivers Cover?
If you purchase rideshare insurance or have compulsory car insurance covering rideshare driving, you’ll most likely hold the highest level of cover available in Australia.
Rideshare insurance might cover you for the following:
- Damage to other people’s vehicles and property
- Loss of your vehicle due to a fire or theft
- Damage caused to your vehicle, even if you’re at fault
- Temporary replacement vehicle while your car is being fixed (optional extra)
Will My Current Car Insurance Policy Cover Me If I Start Rideshare Driving?
Most insurers used to include a specific clause to their car insurance policy stating they wouldn’t cover you if you were transporting passengers in exchange for money.
But the gig economy is growing fast, especially in the rideshare driving field. That’s why an increasing number of insurers are including rideshare insurance in their existing car insurance policies to accommodate rideshare drivers’ needs.
Therefore, it’s important to talk to your insurance provider and let them know you’d like to start working as a rideshare driver. This way, you can review your insurance provider’s options and ask them to adjust your car insurance policy accordingly if necessary.
Do I Have To Tell My Insurer I am a Rideshare Driver?
If you don’t let your insurer know that you’re transporting passengers in your car for monetary gains and you’re involved in an accident while on the job, they might refuse your claim and void your policy.
And this means you might have to fork out thousands of dollars in medical and liability costs.
So, unless your car insurance automatically covers rideshare driving, we recommend talking to your insurer about your plans to become a rideshare driver.
Are My Passengers Covered By Rideshare Car Insurance?
As a rule of thumb, rideshare insurance won’t cover you if one of your passengers is injured while in your vehicle. However, your CTP might cover medical and liability costs associated with passenger injuries.
What’s more, some rideshare companies like Uber have specific arrangements with insurance providers and will cover medical and liability costs related to certain injuries, such as permanent disability. That’s why, as always, we recommend that you speak with the rideshare company you’re planning on working with and your insurance provider.
This way, you’ll be 100% clear on what is covered in your rideshare insurance and who is liable for what.
Do Ridesharing Services Such As Uber Offer Car Insurance To Their Drivers?
Certain rideshare companies provide rideshare drivers with extra liability cover.
For instance, Uber provides a support package designed to cover you for specific injuries such as permanent disability and provide financial assistance for counselling. You’ll find more information on Uber’s website.
However, even though some rideshare companies might offer extra cover, extra liability covers are not designed to replace your CTP or Green Slip insurance (which is mandatory), comprehensive car insurance, third-party property damage, or third-party fire and theft car insurance.
What Car Insurance Is Required To Drive With Uber Or Other Ridesharing Services?
Here’s a list of car insurance requirements for each rideshare company at the time of writing:
Ola
Has rideshare insurance powered by upcover! Explore the Ola rideshare insurance coverage to protect you while working on Ola platform.
Uber
- Compulsory third-party insurance (CTP) - Compulsory
- Third-party property damage insurance (TPPD) - Compulsory
- You can purchase Uber’s extra liability policy to cover you for specific injuries. This is to be purchased alongside your personal car insurance - Optional
DiDi
- Compulsory third party insurance (CTP) - Compulsory
- Third-party damage or comprehensive insurance cover (TPPD) - Compulsory
- DiDi doesn’t offer extra liability cover.
GoCatch
- Compulsory third party insurance (CTP) - Compulsory
- Third-party damage or comprehensive insurance cover (TPPD) - Compulsory
- GoCatch provides extra liability cover arising from third-party property damage or bodily injury if the driver’s personal CTP insurance doesn’t cover these.
How To Find The Best Rideshare Car Insurance?
Unless you’re adept at looking for insurance, finding the best car insurance for your needs as a rideshare driver might feel daunting.
That’s why, to streamline the process for you, we’re launching rideshare insurance specifically tailored to the needs of independent drivers looking to drive passengers as a side hustle or as a main activity.
Want to learn more? Don’t hesitate to contact us, as we’d love to help! Alternatively, you can hop onto our instant quote generator and secure cover within minutes.
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