Ridesharing Car Insurance

Compare free online quotes for car insurance as a rideshare driver in one place.

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, updated on February 15th, 2024       

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Car Insurance Banner - Rideshare driver showing a passenger something on his phone.

Are you a ridesharing driver looking for car insurance? There’s car insurance available which is specifically designed to protect drivers like you who provide transportation services through platforms such as Uber or Ola. Whether you're a part-time or full-time driver, having the right insurance coverage is essential for your peace of mind and financial security.

What is ridesharing car insurance and how does it work?

Car insurance for ridesharing in Australia is a specific type of insurance designed for drivers who provide transportation services through ridesharing platforms like Uber or Ola. It can provide coverage for drivers while they’re engaged in ridesharing activities, which helps to fill the gaps which may exist in their personal car insurance policies and adjusts the cost of their coverage accordingly.

When you're a ridesharing driver, your car is essentially a business vehicle, so regular personal car insurance may not cover you adequately. As such, the coverage it offers is more tailored to the more unique risks associated with driving a vehicle for business purposes. However, ridesharing and business car insurance is often an extension of personal car insurance and is designed for those who are using their vehicle both for business and personal purposes.

By having the right insurance in place, you can drive with confidence, knowing that you have coverage for a range of both personal and ridesharing-related events. You can compare offers online to help you find the best possible deal for your needs.

What does ridesharing car insurance cover?

What your ridesharing car insurance covers will ultimately depend on the level of insurance protection you choose to take out. For instance, comprehensive rideshare car insurance will offer more cover than third party insurance. Consider each of the following types of insurance and the cover they may be able to provide you as a rideshare driver:

Comp. TPFT TPPD CTP
Damage to someone else’s property
Damage to your car due to fire
Damage to your car due to theft
Damage to your car due to weather
✓*
Damage to your car due to accident or collision
Injury or death of someone else in an at-fault accident

*Not all weather-related incidents are covered under a comprehensive car insurance policy. Check your PDS to find out what's covered and what isn't.

On top of these, certain policies may also include optional extras which may extend the total benefits of your policy, such as no-excess windscreen repair or replacement and roadside assistance. Another extra which may be particularly important for rideshare drivers is a replacement hire vehicle if your car needs to be repaired or replaced, which can help you continue working even if your car isn’t able to be driven.

What information do I need to provide to take out ridesharing car insurance?

First and foremost, you’ll need to tell your insurer that you’re a rideshare driver, as this will help inform their premium calculation and shape your overall risk profile as a driver. This may involve sharing details about how often you use your car for ridesharing purposes in comparison to your personal usage, which may be either the hours you work, the distance you drive or both.

Aside from this, your insurer will ask for standard car insurance information, including the following:

  • The make, model and registration of your car
  • Personal contact details and driver’s licence number
  • Where you live (such as if you’re buying car insurance in Perth or country WA)
  • The individuals who will be driving the car
  • How your car is parked (on the road or in a driveway or garage)
  • Your driving and claims history (including whether you have a criminal record)
  • If the car is leased or under finance
  • Whether you have an active no-claim discount from a previous policy

Types of car insurance you can choose from

Common questions about car insurance for rideshare drivers

Is car insurance necessary if I drive for a ride-sharing platform?

Car insurance is typically necessary if you drive for a ridesharing platform. Personal car insurance policies typically do not provide coverage while using your vehicle for commercial purposes. In some cases, you may be required to take out at least third party property damage (TPPD) insurance as a condition of employment, but it’s important to note that all vehicles in Australia are required to take out compulsory third party (CTP) insurance.

How much does ridesharing car insurance cost?

The cost of ridesharing car insurance can vary depending on several factors, including:

  • Your location (such as in a bigger city like Perth or in the country)
  • Your age and driving experience
  • Your driving history
  • Your vehicle type
  • How your car is parked
  • How much you use your car (both for business purposes and overall)

Generally, ride-sharing car insurance may be slightly more expensive than personal car insurance due to the increased risk associated with ridesharing activities. As such, you should get quotes from different insurance providers to compare costs and help you find coverage at the best possible price.

Are there any exclusions or limitations in ride-sharing car insurance policies?

Yes – ridesharing car insurance policies will have certain exclusions or limitations that vary between insurance providers in the same way that any car insurance policy has them. Common exclusions or reasons your policy may be voided can include:

  • Intentional acts
  • Criminal activities
  • Driving under the influence
  • Claims for vehicles which are deemed unroadworthy
  • Mechanical breakdown of the vehicle, such as engine failure

It’s important to carefully review the policy terms and conditions to understand the specific exclusions and limitations that apply.

What’s the process for filing a claim with ridesharing car insurance?

The process for filing a claim with ride-sharing car insurance typically involves the following steps:

  1. Contact your insurance provider: notify your insurance provider as soon as possible after an incident and provide all relevant details.
  2. Gather documentation: collect any necessary documentation, such as accident reports, photos and witness statements, to support your claim.
  3. Submit the claim: complete the required claim forms provided by your insurance company and submit them along with the supporting documents.
  4. Claim assessment: the insurance company will assess your claim, which may involve investigating the incident and evaluating the damages.
  5. Claim settlement: if your claim is approved, the insurance company will provide a settlement based on the terms of your policy.

 

It's important to follow the specific procedures outlined by your insurance provider and provide accurate information throughout the claims process to ensure a smooth and efficient resolution.

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