Rideshare insurance: How to drive for Uber in Australia without voiding your car insurance

Since ridesharing services like Uber, Ola, DiDi, and Lyft became popular alternatives to taxis, this particular segment of the gig economy has also become one of the Australian driver’s favourite ways to earn a little extra cash. 

With services making it a relatively straightforward process to sign up, everyday motorists are increasingly using their own cars to make money.

But, how does driving for a rideshare service affect your car insurance policy?

More car insurance providers are starting to offer rideshare insurance  

Traditionally, car insurance policies would not have covered you when driving for a rideshare service. However, given rideshare services are commonplace today, there are plenty of car insurance providers out there who include, or give you the option to add, cover if you drive for Uber, DiDi, Lyft, Ola, and more. 

If you’re wondering whether your current car insurance policy will cover you as a rideshare driver, contact your provider or check your Product Disclosure Statement (PDS), especially the general exclusions section.

Aside from third-party property insurance, you may want to consider a comprehensive policy for the added benefits 

While compulsory third-party (CTP) insurance is, as the name suggests, compulsory in Australia, rideshare companies like Uber, Ola, DiDi, and Lyft may require rideshare drivers to have at least third-party property (TPP) insurance before they hit the road. 

However, if you’ve recently signed up for a ridesharing service, you’ll probably be using your car more frequently than when it was just for private use. If that’s the case, a comprehensive car insurance policy could go a long way. 

With this level of cover your provider will have your back for a range of incidents including fire, theft or a storm in addition to road accidents, and you could also enjoy the flexibility to choose your repairer or your level of car insurance excess.

Rideshare companies usually offer support that complements your own personal car insurance policy 

One of the big myths floating around the ridesharing realm is that the service you’re driving for will cover you, your passengers and your car if something were to go awry while you are working. While there’s usually some form of protection in place, that’s not entirely true. 

While your new employers do provide a level of cover, it isn’t as extensive as you might think. 

Let’s look at Uber as an example. 

If you are at fault for an accident while driving for Uber, the company’s free contingency cover will only cover bodily injury to you, the driver, with up to a $500,000 lump sum in the case of accidental death or disability, plus other minimal lump sums, such as if you can't drive due to being assaulted on the job ($5,000) or incur broken or bones ($2,000). 

However, this doesn’t cover any of the damage you may cause to your vehicle or others' during an accident. So it is important to have comprehensive car insurance, or at least third-party car insurance, to help cover those potential costs.

Keep in mind, that the cover discussed above comes with Uber’s insurance policy, but each ridesharing service’s agreement might differ slightly, so be sure to find out what type of coverage they offer before you start driving.

Not all car insurance policies offer rideshare driver insurance

Several insurance providers offer coverage for rideshare drivers, either as standard, or as an optional-extra. 

You’ll need to read through the PDS to see if the policy suits your needs and get quotes to see which policy looks like good value for money. 

With QBE, you’ll need to inform them that you’re using your insured vehicle for ridesharing and be careful not to exceed the time limit on the number of hours you rideshare for.

Note, adding ridesharing to your certificate of insurance could potentially increase your premium. 

For more information about this policy, read our review of QBE Comprehensive Car Insurance. 

With Kogan, you’ll need to let them know that your car is being used for ridesharing services and have it listed on your certificate of insurance. You’ll also need to be careful not to exceed the number of allowed ridesharing hours, as listed on the certificate. 

For more information, read the Kogan Comprehensive Car Insurance review.

Australia Post’s Comprehensive Car Insurance policy includes coverage for rideshare driving, so long as you let the provider know that you’ll be using your vehicle for that purpose. 

Ridesharing will need to be listed on your certificate of insurance, and you’ll have to stay below the maximum allowed number of hours you can rideshare for. 

For more information about the policy, read the Australia Post Comprehensive Car Insurance policy review. 

ANZ Comprehensive Plus Car Insurance

If you have an ANZ Comprehensive policy, make sure you let them know that you will be using it for ridesharing, as you need to have rideshare use listed on your certificate of insurance. Like with other car insurance policies, you'll need to keep the number of hours you are ridesharing below the agreed-upon limit, as stated on your certificate of insurance. 

Read the ANZ Comprehensive Plus Car Insurance review for more details about what this comprehensive car insurance policy covers.

Bingle Comprehensive Car Insurance 

When getting a car insurance quote from Bingle online, make sure you select ‘rideshare’ as the primary use of your vehicle – you should still be able to use it for personal use too, if you use your car for both private and business use. 

For more information, read through the Bingle Comprehensive Car Insurance review.  

Carpeesh Comprehensive Rideshare Insurance 

As a rideshare driver, you may need to choose the ‘Rideshare’ policy from Carpeesh, which includes comprehensive coverage. 

For more information about this policy, read the Carpeesh Comprehensive Car Insurance review.

Other car insurance policies that may offer rideshare insurance include:

• AAMI Comprehensive Car Insurance
• Australian Unity Comprehensive Cover
• Beyond Bank Comprehensive Car Insurance
• Hume Bank Car Insurance
• National Seniors Comprehensive Car Insurance
• Over 50 Insurance Comprehensive Cover 
• RAA Premium Comprehensive Car Insurance
• RAC Comprehensive Car Insurance
• RACQ Comprehensive Car Insurance
• RACT Comprehensive Car Insurance
• St.George Comprehensive Insurance
• Suncorp Insurance Comprehensive Advantages Car Insurance
• Suncorp Insurance Comprehensive Car Insurance
• Suncorp Insurance Comprehensive Extras Car Insurance
• TIO Comprehensive Car Insurance
• Westpac Comprehensive Insurance. 

It's pretty important to understand the kind of money you could lose if you don’t ask your provider about ridesharing cover, or shop around for a policy that includes it.

If driving a rideshare vehicle is one of your main sources of income, not being able to do it because your car is being repaired means you’ll be paying the mechanic to fix it, while not being able to earn any money from driving. 

Plus, even if you do have a comprehensive car insurance policy, any accidents while rideshare driving will not be covered under your policy if you were ‘carrying passengers for money’ – a common general exclusion.  

This means any of the coverage your policy would usually provide, whether it be for your car or someone else’s property, will be void, leaving you to pay the bill.

So, if you’re not covered with the appropriate type of insurance, it could be time to compare comprehensive car insurance, keeping an eye on which policies suit your style as a rideshare driver.