How to manage the rising cost of rideshare insurance in Australia

As we move deeper into 2024, one trend is becoming increasingly clear; the cost of rideshare insurance in Australia is on the rise. The average cost of rideshare insurance has risen by around 50% in the last 12 months, compared to a 10% increase in regular motor insurance over the same period. This can pose a significant concern for rideshare drivers.

At Splend, we understand the importance of comprehensive coverage, so our rideshare vehicle packages are designed to meet the unique needs of rideshare drivers, giving you peace of mind while you’re on the road.

All-inclusive rideshare damage and loss cover

One of the standout features of Splend’s packages is our inclusion of rideshare-specific comprehensive damage and loss cover in all our plans.

For a single weekly payment, drivers can access the essential coverage they need without the hassle of navigating the insurance market alone. This all-in-one solution not only simplifies the process but also provides drivers with the assurance that they’re covered while transporting passengers at a much more competitive rate than they could find independently.

The factors sending rideshare insurance skywards

In recent months, rideshare insurance rates across Australia have risen significantly due to several contributing factors. Here’s what’s driving the increase and what drivers need to know:

• Passenger Risk: Carrying passengers adds increased liability, which insurers factor into higher premiums.

• Accident Exposure: Prolonged hours on the road and navigating unfamiliar routes elevate the risk of accidents.

• Adjustments in Pricing Models: Insurance companies are recalibrating their pricing to reflect the unique risks rideshare drivers face.

Drivers should be aware of how these changes impact their costs and plan accordingly to protect their earnings.

The risks of being underinsured

Driving passengers without proper rideshare damage and loss cover is a gamble that could have serious consequences. If an accident occurs, drivers who lack the necessary coverage may find themselves financially vulnerable. Without proper rideshare cover, they could be left responsible for damages to their own car as well as third party vehicles, leading to a potentially ruinous financial situation.

It’s a non-negotiable that drivers must prioritise their insurance needs and ensure they’re fully covered before hitting the road.

Beware of “Backyard operators”

Splend recently spoke to a customer who had a rideshare rental through a “backyard operator”. The customer believed their rental was fully covered for rideshare driving by comprehensive insurance however when Splend got a copy of the contract they found that:

• The excess charged for any claims was $3,000 minimum cost;

• The “Insurance” did not cover any other vehicle involved in the accident when the driver was at fault and all costs would be to the driver; and

• All towing and holding costs must be covered by the driver.

Doesn’t sound very comprehensive does it?

This poor driver was told verbally the excess was only $800 and gave him full comprehensive cover. Unfortunately the driver had not taken the time to fully read the contract. Luckily for him he hadn’t had an accident but these are the kind of decisions that can ruin someone’s life. Imagine if this driver had an at-fault accident into a luxury car, or any car for that matter.

It’s a reminder to all drivers to check the conditions of their insurance cover and make sure they are covered in the event of an accident.

A challenge for EV drivers

For electric vehicle (EV) drivers, finding rideshare insurance can be even more challenging. While the adoption of EVs is on the rise, many traditional insurance providers are still playing catch-up when it comes to tailored policies for this growing segment. This can leave EV drivers in a tough spot, searching for insurance that meets both their vehicle type and their rideshare needs.

At Splend, we’re committed to offering packages that address these unique challenges, providing accessible and relevant coverage for all drivers.

We are here to help

It’s necessary for drivers need to stay informed about their insurance options and the associated costs.

At Splend, we simplify this process easier by offering flexible and comprehensive vehicle packages that include rideshare-specific damage and loss cover. We want our drivers to feel secure and supported, knowing they have the coverage they need to operate.

If you are a rideshare driver, or are considering becoming one, don’t let rising insurance costs deter you. With the right coverage, you can navigate the roads safely and focus on what matters most - providing excellent service to your passengers. For more information about our Flexi packages and how we can support your rideshare journey, reach out to us today.

About Splend

Splend makes car ownership easier, more affordable and more accessible for rideshare drivers by building everything they need to earn more, pay less and stress less into one affordable weekly payment.

It’s smooth driving, with no surprises and the lowest total ownership cost you’ll find – which is how car ownership for rideshare drivers should be. For more information about Splend, make an appointment and drop by to your local Splend Hub, email us, or say hello on 1800 775 363.