What is rideshare insurance?
Expert tips for rideshare insurance
Adrian Taylor
Executive General Manager – General Insurance
Let your insurer know you’re using your car for business use
If you work as a rideshare driver and use your car for private commuting, it’s important that you tell your insurer so you can be covered for both business and private use.
You may need to adjust your existing car insurance policy
If you plan on using your vehicle for ridesharing, consider talking to your insurer first, as your policy may no longer be suitable for your needs.
Consider upgrading to a comprehensive car policy
Your current insurer may not offer cover for ridesharing unless you upgrade to a comprehensive policy. If you want to stay on a third-party policy, compare car insurance quotes to see if another insurer offers cover for rideshare driving with those levels of cover.
Car insurance for rideshare drivers
What types of insurance are available for rideshare drivers?
Compulsory Third Party (CTP) insurance is not only available to all registered vehicles in Australia, but it’s also mandatory. For policies that cover vehicle and property damage, you might find that car insurance options for ridesharing are more limited.
Not all insurers will cover ridesharing, while others might only cover it through a comprehensive policy. However, some insurers may offer Third Party Fire and Theft (TPFT) and Third Party Property Damage (TPPD) policies for rideshare vehicles.
If you already have a policy and you’re considering ridesharing with your vehicle, it’s important to contact to your current insurer and see if they will cover those activities. Alternatively, you could shop around and switch to an insurer that does cover ridesharing.
What should I look for in an insurance policy that covers rideshare services?
In any car insurance policy, it’s worth looking into cover for accidental damage you may cause to another person’s vehicle or property, and whether any damage to your own car is also covered.
Comprehensive car insurance policies offer the most cover for your own car, while third party cover like TPFT and TPPD might only cover accidental damages to your vehicle in limited instances. However, third party policies might be suitable if you’re mainly looking to cover accidental damages to other cars and you’re looking for cheaper cover.
You can view the inclusions, payout limits, exclusions and other key terms in the relevant Product Disclosure Statement (PDS) policy document. The Target Market Determination (TMD) could also you help determine if the product is right for you.
What does car insurance for rideshare drivers cover?
It depends on your insurance provider and the policy itself. CTP is the only insurance that provides liability cover for personal injuries and deaths in car accidents but doesn’t cover accidental damages to vehicles. Comprehensive, TPFT and TPPD all provide cover for vehicle damages for varying circumstances.
The following table provides a guide on what each policy type usually includes and excludes.
| What is and what isn’t covered? | Third Party Property Damage | Third Party Fire and Theft | Comprehensive | CTP/Green Slip |
|---|---|---|---|---|
| Damage to your own vehicle following a collision | ✗ | ✗ | ✓ | ✗ |
| Loss or damage to a third party’s vehicle/property caused by your car (legal liability) | ✓ | ✓ | ✓ | ✗ |
| Loss or damage to your own vehicle caused by weather (storm, flood, hail) | ✗ | ✗ | ✓ | ✗ |
| Loss or damage to your vehicle caused by theft | ✗ | ✓ | ✓ | ✗ |
| Hire car after theft | ✗ | ✓ | ✓ | ✗ |
| New car replacement (if your car is less than a certain amount of years old) | ✗ | ✗ | ✓ | ✗ |
| Loss or damage to your vehicle caused by fire | ✗ | ✓ | ✓ | ✗ |
| Loss or damage of personal possessions/effects | ✗ | ✗ | ✓ | ✗ |
| Damage to your vehicle caused by an uninsured driver | ✓ | ✓ | ✓ | ✗ |
| Emergency transport and/or accommodation | ✗ | ✗ | ✓ | ✗ |
| Towing | ✗ | ✓ | ✓ | ✗ |
| Key replacement | ✗ | ✗ | ✓ | ✗ |
| Death benefit | ✓ | ✓ | ✓ | ✗ |
| Legal liability for injuries or death to other people | ✗ | ✗ | ✗ | ✓ |
| Variable excess | ✗ | ✗ | ✓ | ✗ |
Always read the PDS for more details on inclusions, exclusions, limits and sub-limits.
Will my current policy cover me if I start driving for a rideshare platform?
Not all insurance providers cover ridesharing, which is why you should notify your insurer if you begin driving for a rideshare company. If they do offer insurance for ridesharing, they may be able to update your policy and premiums to better reflect how you use your car. Conversely, if your insurance provider doesn’t offer cover and your vehicle is damaged in a car accident while you’re ridesharing, they could deny your claim.
Is car insurance required to be a rideshare driver?
Like other vehicles, CTP insurance or an equivalent policy (e.g. a Green Slip in NSW) is a legal requirement for all rideshare vehicles. Rideshare services may also require their drivers to hold a type of third party car insurance as minimum cover, such as TPFT or TPPD.
Some of the more popular rideshare app services requiring drivers to have insurance include (but are not limited to):
- Uber
- Ola
- DiDi
- Shebah
- MooVr.
For more information specific to the rideshare platform you’re using, consider reading the rideshare platform’s terms and conditions to see what level of cover you need.
How much does insurance for ridesharing cost?
The amount you pay for insuring a rideshare car will depend on several factors, including:
- The market value of your vehicle
- The level of cover you choose
- The age, gender and driving history of the listed drivers
- Where you park the car overnight.
Using your vehicle for ridesharing could also impact your insurance premiums as insurance providers consider this a different type of use of your vehicle compared to commuting and private use. Find out more about how car insurance is calculated.
What should I do after an accident?
If you’re involved in an accident while driving your vehicle for a rideshare service, here are some steps to take after an accident:
- Check everyone is safe and if it’s an emergency situation, call 000
- Gather the contact details of other drivers and any witnesses at the scene
- Take photos of your vehicle damages
- Notify your insurer, provide supporting information and make a claim (if needed)
- Contact your authorised representative at your ridesharing service to inform them about the accident.
The rideshare platform you drive for may have support and counselling services in place to help you after you experience an accident while driving for them.
Meet our car insurance expert, Adrian Taylor
As a General Insurance expert with over 13 years’ experience in financial services, Adrian Taylor is passionate about demystifying car insurance for consumers, so they have a better understanding of what they’re covered for. Adrian’s goal is to make more information available from more insurers, to make it easier to compare and save.