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Rideshare car insurance

By Brad Buzzard and Jack Dona
Fact Checked
Advertiser disclosure

If you drive for or are considering driving for ridesharing platforms like Uber or Didi, you can often extend your private, personal-use car insurance policy to cover your business-related activities. In this guide, we'll explain how this works, along with the insurance options available to you. 

Let’s jump in!

A rideshare driver smiles along with the two passengers in the backseat of his vehicle

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What is rideshare insurance?

Rideshare insurance is car insurance that is designed to cover rideshare drivers for damages they cause while driving for Uber, Didi, Ola or other rideshare service in Australia. 

It can be considered a type of business (or commercial) car insurance. 

Given how widespread rideshare services are these days, and how you might be using the exact same car for business purposes one minute and personal reasons the next - a growing number of car insurance companies are covering both types of use cases under one policy.

How does rideshare insurance work?

It all boils down to business vs. personal use. If an insurance company offers a rideshare insurance policy, that policy will cover you for both use-cases, and there are typically three main ways they handle it. 

In all cases, you should expect to pay a higher premium due to the extra driving you’ll be doing and unique risks associated with rideshare driving.

In the table below, you’ll find how car insurance companies handle ridesharing policies as a category of cover. The section that follows will describe the levels of cover you can get.

Option 1: Extension of your personal policy

Some insurers offer an add-on or extension to your existing personal car insurance to cover your rideshare activities. This option usually requires notifying your insurer about your rideshare usage.

Benefits

  • Extends a policy you’re already familiar with.
  • Convenient if ridesharing is is just a side gig for you or you’re just testing the waters.
  • Can be cheaper due to possible restrictions on how much you can use your car for ridesharing purposes.
  • Covers business and personal use.

Drawbacks

  • Possible restrictions on how much you can use your car for ridesharing purposes.
  • The policy is usually written with personal use in mind, so it might take some extra effort to figure out how it covers ridesharing, though this doesn't change the actual coverage you get.
  • Some only offer this on their comprehensive level of cover, even though this is more than rideshare companies typically require.

Option 2: Specific rideshare insurance policy

These are policies designed specifically for rideshare needs, while also covering you for personal use, often offered by newer companies.

Benefits

  • Policy wording attuned to ridesharing (without much noticeable difference in coverage).
  • Potentially more flexibility in business vs. personal use.

Drawbacks

  • Lesser-known brands with shorter track records of reliability and customer service.
  • You’ll have to ditch any existing personal policy, since this one covers personal use too.

Option 3: Business car insurance

Some insurance companies advertise that they offer rideshare insurance, but simply put you onto one of their business car insurance policies. Others that offer extensions to your personal policy (as in option 1) may steer you toward their business car insurance if your ridesharing activities reach a certain threshold.  

Benefits

  • Convenient if ridesharing is your full-time job.
  • May offer perks like cover for business-related equipment.
  • Offered by familiar brands.

Drawbacks

  • Potentially more expensive due to a business-first focus.
  • The policy is usually written with business use in mind, so it might take some extra effort to figure out how it covers personal use, though this doesn't change the actual coverage you get.
  • You might have to ditch any existing personal policy, since this one covers personal use too.
💡 Top tip: While these insurance options might have different labels, they all aim to cover the same bases. It's a good idea to gather quotes from a range of providers, no matter how they label their rideshare policies. 

For example a policy labelled ‘business car insurance’, while potentially more expensive in general, might work out to be the most affordable for you due to your unique circumstances. We suggest looking into all your options, diving into the Product Disclosure Statements, asking questions, and collecting a few quotes to ensure you find the right fit.

What level of insurance do I need to be able to drive for a rideshare service?

Depending on your specific circumstances, there are a few levels and types of car insurance that are required by either the government, the rideshare company or whoever lent the money or provided the lease for your car.

You may notice these levels of cover are identical to the levels of cover for private, personal-use policies. That’s because the basic structure is the same for private, commercial and rideshare insurance. 

Compulsory Third Party insurance (CTP) - required by law

Compulsory third-party car insurance, also called your green slip, is mandatory in all states (whether you’re a rideshare driver or not) and covers injuries you cause to yourself, your passengers, pedestrians, plus drivers and passengers of other cars. 

💡 Top tip: Check your state’s transportation department website for specific requirements related to ridesharing, and whether or not they charge extra if you use your car for ridesharing. 

Third-party property insurance (TPP) - required by the rideshare companies

All three major rideshare platforms - Uber, DiDi and Ola - require you to add this level of cover, as a minimum, to your CTP. 

TPP insurance is the minimum level of property-related insurance, covering you for damages you cause to other peoples’ property, including their car, personal items, animals and any stationary items along the road (like someone’s fence or a public lamppost). It also protects you from financial liability if the injured parties suffer financial damage.

It does not cover you for damages to your car, unless you add the token ‘fire and theft’ cover to it, which will cover your car in those very specific circumstances (note: the added fire and theft cover is not required by rideshare companies).

💡 Top tip: Let your insurance company know you are using your car for ridesharing. This will ensure that you’re covered properly when transporting passengers and that your premium is calculated accordingly.

Comprehensive car insurance - required by your lender or lessor

Comprehensive car insurance covers everything TPP does, plus damage to your car from things like accidents you cause, bad weather, uninsured drivers and more. 

If you owe money on your car or are leasing it from a rideshare car leasing company, they may require you to have comprehensive car insurance to protect the asset until you’ve paid it off or returned it.

💡 Top tip: You don’t need comprehensive insurance and TPP insurance together. If you choose comprehensive insurance because your lender requires it, or the added cover simply gives you more peace of mind, it will be more than enough to satisfy Uber and the other rideshare companies. 

Just let your insurer know you’ll be using your car for ridesharing purposes.

Does Uber offer insurance?

Rideshare companies usually offer a token amount of insurance that complements your own personal car insurance policy, but it doesn’t replace the insurance you’re required to purchase yourself.   

Let’s look at Uber as an example. Their driver insurance covers you for a range of injuries and financial damages if you get into an accident while working. It doesn’t cover your car or others’ property, but it does offer financial support for things like hospitalisation, disability, assault and funeral expenses.

There might be some coverage overlap between Uber’s basic policy and your CTP, TPP and/or comprehensive cover. For dual claims covering the same types of damages, the two insurance companies will work together to who covers what and for how much.

Didi and Ola don’t publish their insurance information online, so for any questions, contact the rideshare company directly.

What’s the best rideshare insurance for Uber drivers in Australia?

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Important disclosures
Comprehensive Car Insurance**
  • $75 discount on your first year’s premium when you buy online (T&Cs apply)
  • Lifetime repair guarantee

QBE’s comprehensive car insurance offers a whole range of benefits with convenient optional extras at a great premium.

Enjoy new-for-old replacement (up to 3 years old, driven 60,000km), cover for accidental damage, fire and theft, weather damage, essential repairs up to $500, and emergency transport and accommodation up to $1,000 and a bonus $75 discount when you purchase your policy online (T&Cs apply).

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.

Kogan Comprehensive Car Insurance**
  • $80 off new online applications (T&Cs apply)
  • New-for-old car replacement (within 3 years)
  • Reasonable car towing and storage costs covered

Kogan Comprehensive Car Insurance brings with it one of the highest levels of protection. It covers your vehicle for damage caused in an accident, weather events, fire and theft, plus damage your car causes to other people’s vehicles and property.

When you insure your brand new car with Kogan, if it’s written off within the first three years and has driven less than 60,000km, Kogan will replace it with a new car, as well as cover reasonable towing and storage costs in the event of an accident.

Plus, you’ll score a $5 Kogan.com credit (min. spend $100, 1 per customer) when you complete a quote and new applicants get $80 off their policy when they apply online (T&Cs apply) and a $10 Kogan.com credit each month their policy is active (min. spend $100, 1 per customer). Higher excesses apply to drivers under the age of 25.

You’ll need to let Kogan 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 Comprehensive Car Insurance**
  • New-for-old car replacement (under 3 years and 60,000km)
  • Hire car cover for not-at-fault claims
  • $1,000 personal property cover
  • $75 discount on your first year’s premium when you buy online
Find out more

Australia Post’s comprehensive cover is all about flexibility, before, during and following the claims process. If your car is being repaired or replaced after a theft or accident where you weren’t at fault, you could be sorted for 14 days of hire car cover (post-accident hire car cover is often only an option extra).

If you do write off your car, AusPost will replace it with a new comparable model, so long as your retired wheels were less than 3 years old and had travelled under 60,000km.

Other great features include $1,000 of personal property cover for items inside your car, and up to $1,000 cover for emergency travel and accommodation if you’re more than 100km away from home.

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. 

Other insurance providers offering rideshare insurance

Other car insurance policies that may offer rideshare insurance include:

Brad Buzzard
Brad Buzzard
RG146
Senior Money Writer

Brad is a senior writer at Mozo, covering insurance and superannuation with a research-driven approach. With a background in marketing analytics, he ensures content is clear, accurate and genuinely useful.

Jack Dona
Jack Dona
RG146
Senior money writer

Jack is degree-qualified in communications and creative writing, with a talent for simplifying financial jargon. His approach helps consumers make better decisions. Jack is RG146 certified in generic knowledge and uses flair to make finance interesting.

* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.

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