Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.
Rideshare car insurance
Looking for car insurance for Uber drivers? Here's how to find the cover you need.
Updated . What changed?
Uber and other rideshare services offer a quick and easy way for their drivers to earn extra money. However, what you may not know is that becoming a driver for a rideshare service could void your car insurance policy. Most standard car insurance policies don’t provide cover when your car is used to carry passengers for profit.
If you’re thinking about driving for Uber or another rideshare service, you may need to change to a commercial car insurance policy, or a provider who specialises in rideshare insurance, to make sure you’re covered. Otherwise you’ll find yourself out of pocket if you need to make a claim.
What's in this guide?
- Am I covered if I take out ordinary car insurance?
- How do I get car insurance for Uber drivers?
- What does commercial car insurance cover?
- How do I find the right commercial car insurance cover?
- Why speak to a broker about commercial car cover?
- How to report an accident and make a claim
- Other questions you may have about rideshare car insurance
Am I covered if I take out ordinary car insurance?
When comparing private car insurance you’ll see that cover is not available if you use your car to carry passengers for monetary reward. If you’re not aware of this it could cause claims you make on a policy to be refused.
This means you’ll need to switch to a commercial car insurance policy instead, if your current insurer offers one, or look around for another provider. By selecting this type of policy, you are covered if you drive your car as part of a rideshare service, which ensures you can access much-needed financial protection if you’re involved in an accident.
Some insurers may cover you if you’re using your car for ridesharing part-time, but you’ll need to check with them first.
How do I get car insurance for Uber drivers?
If you want to drive for Uber in New Zealand you must as a minimum:
- Have third party car insurance cover. This type of cover provides protection when your vehicle causes damage to someone else’s car or property.
Uber also offers contingent liability policy for drivers, which works in conjunction with your third-party policy. It provides injury and property damage liability cover and offers financial protection if your other policy won’t pay out or it reaches its cover limit. You also need to pay an excess for any claims under this policy.
While Uber provides this supplemental insurance coverage, you shouldn’t rely on this to cover you in all circumstances so make sure have your own separate car insurance policy for commercial use.
What does commercial car insurance cover?
Commercial car insurance works in the same way as regular car insurance, but with the added benefit of the cover applying when you drive your vehicle to carry passengers for a service like a taxi or Uber.
After that, policy benefits vary depending on the cover you choose:
- Comprehensive insurance. The highest level of car insurance cover available, this policy covers you for loss or damage to your vehicle caused by collision; fire; theft; vandalism; storm; hail; flood and more. It also provides protection if you damage someone else’s car or property in an accident.
- Third party fire and theft insurance. This mid-level policy option covers you when your vehicle is stolen or damaged by fire, or if you’re responsible for an accident that damages someone else’s vehicle or property.
- Third party insurance. As the cheapest level of cover available, this policy provides cover for damage to someone else’s vehicle or property that you cause in an accident.
How do I find the right commercial car insurance cover?
Bear the following tips in mind, to help you find the commercial car insurance policy to match your ridesharing needs:
- Research commercial car insurers. Not all car insurance providers may offer cover for rideshare drivers under their commercial car insurance policy, so you need to do some research to discover which companies give the protection you need.
- Consider your cover needs. How much cover do you want for your vehicle? Do you want affordable cover that protects you against essential risks only, or would you prefer the peace of mind that a comprehensive policy offers?
- Get quotes. It’s simple to apply for insurance quotes online. Obtain quotes for multiple policies, to gain a better idea of how much rideshare car insurance costs.
- Compare cover features. Don’t just choose a policy based on its price; remember to look past the premium and carefully inspect the features each policy offers. Check what’s covered, what’s excluded from the cover, and what limits apply, as this will help determine which commercial car insurance is the perfect fit for you and your rideshare vehicle.
- Consider expert help. Having trouble finding a suitable policy? You might want to ask an experienced insurance broker to help you find a commercial car insurance policy that covers rideshare driving and meets all your needs.
Why speak to a broker about commercial car cover?
Choosing car insurance can be a confusing task at the best of times. With many different types of cover available, and a long list of insurers to choose from, finding a policy that’s both affordable and suitable for your needs can be a challenge. Throw in the extra complication of choosing a policy that covers ridesharing and the prospect of selecting one becomes even more daunting.
An experienced and reputable car insurance broker can be a considerable help. Brokers have in-depth knowledge of the New Zealand insurance industry and how different policies and cover features work. Your broker will assess your budget and cover needs, before presenting you with a choice of suitable options from different insurers.
- You find the cover that’s right for you
- You are protected when driving for a rideshare service like Uber
- Your broker can answer any questions you might have about car insurance
- The process is quicker and stress-free
What happens if you have an accident?
If you have an accident as an Uber driver, cover is provided by the combination of insurance you have in place:
- If you have a comprehensive rideshare car insurance policy in place, you are covered for damage to your car, plus damage to another driver’s vehicle or property
- ACC covers treatment for damages incurred by someone injured in an accident, regardless of fault
- Uber’s contingent liability policy provides injury and property damage liability cover, for expenses not covered by your other insurance
Make sure you’re aware of the excesses that apply to your car insurance policy and Uber’s insurance before making a claim.
How to report an accident and make a claim
If you’re involved in an accident, while driving for a rideshare service, you should adhere to the standard protocol. Check that everyone is safe, phone the emergency services if necessary and take reasonable steps to prevent further accidents or damage.
Then you need to follow a few straightforward steps:
- Collect information. Collect the name, address and registration details of any drivers involved in the incident. You may also need to gather the contact details of any witnesses.
- Report the accident to your insurer. Phone your insurer to notify them of your claim, providing full details of the incident that occurred.
- Tell your rideshare service. You also need to notify the rideshare company that you have been involved in an accident.
Both your car insurance provider and rideshare service can advise you on the next steps to take, including details of the information you need to provide, and how your insurance covers the accident.
Other questions you may have about rideshare car insurance
More guides on Finder
Where to buy cycling clothing gear online in New Zealand
With Tour De France just around the bend (yes, pun intended) we’ve pulled together a comprehensive guide of what should be in your shopping cart before the day’s out.
1 in 10 Kiwis don’t lock their doors
Thousands of Kiwis may be putting themselves at increased risk of being burgled according to new research by Finder. A recent survey of 2,001 respondents found that 1 in 10 Kiwis don’t lock their door
We put MyGold under the microscope to find out what it offers to investors looking to buy gold or silver bullion.
Kiwi Car Loans review
Borrow up to $500,000 for your new vehicle, caravan, boat or motorcycle with a secured or unsecured finance from Kiwi Car Loans.
Car finance for work visa holders
When you’re a temporary resident in New Zealand, you want to see everything, which can be difficult without a car. Luckily there are some lenders that consider car loans for people on a work or study visa. Find out how to apply here.
Understanding money – a young person’s guide
Our teenagers’ guide to money answers some common questions about money and finance.
20 top money tips for students
Be smart with your money while you get your qualification with these top student money tips.
Disability Allowance – a guide
A guide to Work and Income’s Disability Allowance. Find out who’s eligible, what it covers and how to apply.
Ask an Expert