If you want to become a rideshare driver in Australia, 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.

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.

 

All Splend cars come with comprehensive car cover

Get a rideshare-ready car with our Flexi or Flexi own plan

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.

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.

Didi offers drivers a 10% discount on comprehensive car insurance policy provided by ShareCover.

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.

About Splend

We enable people to make money by driving for on-demand apps such as Uber.

We’re more than a car subscription provider. In addition to new-model cars and all the essentials to start earning money with Uber as quickly as possible, our members enjoy driver training and dedicated support via a personal account manager, as well as member benefits such as partner discounts and exclusive events.

For more information about Splend, drop by to your local Member Support Centreemail us or say hello on 1800 775 363.