If you’re thinking of becoming a driver for Uber, DiDi, or another ridesharing service, what type of car insurance do you need to have in place to protect you, your vehicle and your passengers?
As well as Compulsory Third Party Insurance (CTP), which is legally required to register your car, many rideshare companies will ask you to hold a minimum of third party property damage insurance, while others might insist you take out full comprehensive cover.
Any injury to your passengers resulting from an accident might be covered under CTP, and a ridesharing company may also offer its own insurance for drivers. But you may also like to consider more comprehensive car insurance policies or specialty rideshare insurance policies to protect you and your passengers.
What is rideshare car insurance?
Rideshare car insurance is a relatively new car insurance product, designed specifically with rideshare drivers’ needs in mind. It’s very similar to a comprehensive car insurance policy, but includes cover for when the car is being used to transport passengers using rideshare services such as Uber or DiDi.
Currently only a handful of insurance providers offer standalone rideshare car insurance policies, but many are adding ‘ridesharing’ coverage as an addition to their car insurance options.
If you are a rideshare driver and want to add this cover to your existing comprehensive or third party property policy, you can contact your current insurance provider to learn more about any available options. Many car insurance providers will want you to let them know beforehand if you plan to use your car for rideshare services. Not letting them know in advance could void your policy or lead to your claim being refused.
What type of car insurance do I need for ridesharing?
If you plan to become a rideshare driver, it’s worth considering third party property insurance in addition to CTP or Green Slip insurance. If your insurance does not specifically provide rideshare cover, it is highly recommended to let your insurer know you plan to use the vehicle for ridesharing.
Some rideshare services may require you to have third party fire and theft insurance (the next level up from third party property) or full comprehensive cover - you’ll be told what cover you need when you apply to become a driver. Some rideshare services will also require your insurance to include a ‘rideshare condition’.
Depending on the service, you may also be offered additional liability cover alongside your own car insurance policies. These packages may include personal injury cover and financial assistance, should you be unable to work following an accident. However, it’s important to remember that this does not replace other types of car insurance.
Prior to signing up as a rideshare driver, you are likely to be asked to provide evidence of your car’s insurance cover, such as your policy’s Certificate of Currency or a Certificate of Insurance. You may also be able to add additional liability cover if the ridesharing service offers this.
Below are the car insurance requirements and options offered by some ridesharing services in Australia, at the time of writing.
Car insurance for Uber drivers
What car insurance is required by Uber?
Your car must be road registered and insured for CTP in your state or territory of residence. Your vehicle must also be insured for a minimum of third party property damage, with you listed as a named insured driver, even if you are not the owner of the vehicle or main policyholder.
What additional car insurance does Uber offer?
Uber has a support package for both eligible drivers and delivery partners while they are using the app. Under this package, Uber automatically provides cover to eligible drivers for certain accidental injuries that arise from an on-trip accident, free of charge.
This includes lump sum payments for certain common injuries (such as broken bones), permanent disability and accidental death compensation and reimbursement or lump sum benefits in certain events, such as hospitalisation or assault.
Uber’s support package also covers certain personal injuries and provides inconvenience compensation in the event that you are accidentally injured while on-trip and a doctor certifies that you are unable to work as a result. Terms, conditions and additional eligibility criteria may apply.
Car insurance for DiDi drivers
What car insurance is required by DiDi?
You must provide evidence of your vehicle registration and CTP insurance for the state or territory you live in and have third party property damage or comprehensive insurance cover.
DiDi asks that you disclose that your vehicle is appropriately insured. You’ll need to be listed as the insured driver, whether you have a current third party property or comprehensive insurance cover, in addition to CTP, Green Slip or Motor Injury Insurance (including any appropriate rideshare upgrades, such as premium classes in SA or level 25a rideshare MAI in the ACT).
What additional car insurance does DiDi offer?
DiDi previously offered its drivers a discount on a comprehensive car insurance policy, but this is no longer available. DiDi does offer other discounted services for DiDi drivers.
Car insurance for Shebah drivers
What car insurance is required by Shebah?
Shebah drivers are required to have full comprehensive car insurance, along with vehicle registration and CTP, Green Slip or MAI insurance for the state or territory they live in. You’ll need to mention to your insurer that you plan to use your car for ‘ridesharing purposes’.
Shebah also accepts rental car insurance, but you’ll need to provide the vehicle registration, rental agreement expiry date, and proof that you are fully insured for rideshare.
What additional car insurance does Shebah offer?
None at the time of writing.
Can you claim car insurance on your tax return if you are a rideshare driver?
You should generally be able to claim at least some of your car insurance premiums as a deduction in your tax return as a rideshare driver, alongside all your other business expenses like fuel and the costs to maintain your vehicle.
According to the Australian Taxation Office (ATO), expenses for rideshare drivers can sometimes be part business and part private use, and you can only claim a deduction for the business portion of your costs. You will also need to show how you calculated the business and private use components of your expenses.
What should I do if I have an accident while driving a rideshare?
Just like when you have an accident driving your car privately, it’s important to stay calm and take the following steps:
- Check that everyone involved is safe - call 000 if there is an emergency.
- If it’s safe to do so, pull over to the side of the road and take whatever other steps to limit further incidents and damage.
- Take photos of any damage and get the details of any other vehicles, drivers, passengers and witnesses.
- Report the crash to the rideshare operator. The app may have an emergency assistance button or similar safety feature to get help quickly.
- Contact your insurer to get help and make a claim.
Additional safety tools and support may be available via the rideshare operator, such as counselling services.
