The essentials of rideshare insurance
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If you want to become an Uber driver in Australia or drive for any other rideshare app, it’s mandatory that the car you drive is properly insured. If you’re driving a subscription car, it may even be covered by the car subscription provider.
No matter the situation, it’s important to know what is rideshare insurance, the essentials of rideshare car insurance, and what you need in order to start earning.
What is rideshare insurance?
It’s a relatively new kind of insurance, designed specifically for rideshare drivers. It’s similar to a comprehensive car insurance policy and it covers incidents that may happen while you’re using your car to transport passengers using rideshare services like Uber, DiDi, and Ola.
Is rideshare insurance required to be a rideshare driver?
Yes. If you want to become a rideshare driver for any platform, it’s mandatory to have a rideshare insurance policy for your car.
What does rideshare insurance cover for rideshare drivers?
Below are the three available types of car insurance and what they cover.
| Insurance type | Damage to your car | Damage to another person's car or property | Damage or loss caused by theft | Injuries or death to others in an accident |
| CTP | No | No | No | Yes |
| Third party property | No | Yes | No | No (but covered by CTP) |
| Third party fire and theft | No | Yes | Yes | No (but covered by CTP) |
| Comprehensive | Yes | Yes | Yes | No (but covered by CTP) |
Comprehensive car insurance is the highest level of insurance and protection you can have. We strongly recommend it, if possible.
What kind of car insurance do I need as a rideshare driver?
In addition to the compulsory CTP or Green Slip, the minimum you need is third party insurance. Uber, Didi, and Ola – three of the most popular platforms in Australia – all require that you register and CTP-insure your car in the state you’ll be driving. Your car must also be insured for a minimum of third party property damage and you have to be the insured driver. If you’re driving a subscription car, Ola also requires that you share your subscription agreement, which proves that you have the insurance they require.
When driving a Splend car, you are nominated as the insured driver, ensuring both you and your subscription car are covered.
Is rideshare insurance expensive?
It depends. The premiums you pay for rideshare insurance generally depend on various factors that are unique to you, such as your gender, age, car type, driving history, and even where you park your car at night. It can become quite costly for some drivers, depending on the risk the insurance company sees in insuring you.
For example, Australian male drivers are statistically more likely to be in an accident than women drivers. In some states, younger male drivers are considered more prone to accidents. In these states, rideshare insurance would be more expensive for young male drivers.
It also can become expensive for some types of vehicles, like EVs.
Do I have to tell my insurer I am a rideshare driver?
Yes. It’s always a good idea to let your insurer know you’re using your car for ridesharing services. Some insurers don’t cover ridesharing, so if you don’t tell them, they may refuse to cover your claim in case of an accident, so it’s always better to prevent misunderstandings as not having the right type of insurance can be as bad as not being insured at all if your non-disclosure allows the insurance company to not pay out. Most insurance companies these days will ask on your application form if you are using the car for rideshare.
Do rideshare platforms offer rideshare insurance?
Yes, but not for your car. Some rideshare platforms do provide insurance policies that work alongside your personal car insurance and cover you while on trips or in case of injury or sickness. For example, Uber offers for both driving and delivery partners free partner support insurance for certain personal injuries, helping to cover drivers in case something goes wrong while using the Uber app. This policy comes with terms and conditions and only applies to certain events and situations. Ola, on the other hand, doesn’t provide any kind of insurance, so drivers must get their own personal accident cover.
Can I claim my car insurance on tax return, as a rideshare driver?
Technically, yes. Although you can’t claim a tax deduction on the insurance premiums directly, you can claim a deduction on expenses involved with rideshare driving, where you can include car insurance. You can only deduct the percentage proportional to your business use of the car. For example, if you’re using your car for Uber driving 50% of the time, you can only deduct 50% of your expense on rideshare car insurance.
Does Splend provide rideshare insurance?
All of Splend's vehicles on our Flexi Own and Flexi Try plans are covered by comprehensive damage and loss cover meaning you are covered if you have an accident while driving, or your car is stolen or damaged by someone else. Splend also provides an Uber-ready courtesy car while you car is off the road getting fixed after an accident so you can keep earning.
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.