Looking for car insurance for Uber drivers? Here’s how to find the cover you need.
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. Many standard policies don’t provide cover when your car is used to carry passengers for profit.
The good news is that insurers are now expanding their cover to offer options for Uber and other taxi-type rideshare drivers. Here’s how to choose the best rideshare car insurance policy.
Why take out rideshare car insurance?
On an ordinary car insurance policy, when you check the list of general exclusions, you will see that cover is not available if you use your car to carry passengers for monetary reward.
Insurers will only cover you for the private use of your vehicle, which is a tremendous problem for rideshare drivers and could cause claims you make on a policy to be refused.
In response to the rise of Uber and other rideshare services, several insurers now offer a rideshare extension on their car insurance policies. By selecting this option, when you buy a 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 only offer the rideshare extension with comprehensive car insurance policies, but others provide it for third party fire and theft and third party property damage policies.
Some insurers will not cover you if you’re a full-time Uber driver. Instead, they provide cover for part-time rideshare drivers.
How do I get car insurance for Uber drivers?
If you want to drive for Uber in New Zealand you must:
- Have third party property damage 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.
What kind of car insurance do I need for ridesharing?
The exact type of car insurance cover you need for ridesharing depends on two factors:
- The insurer you choose
- The level of protection you want
While several insurers offer rideshare insurance extensions, some providers only allow you to include this extension when you purchase a comprehensive policy. If you want the high-level protection on offer from comprehensive car insurance, then this is the right option for you.
However, if you’re looking for third party fire and theft or third party property damage cover, you need to look for an insurer that allows you to add the rideshare extension to these policies.
What does rideshare insurance cover?
Rideshare 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 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 rideshare car insurance cover?
Bear the following tips in mind, to help you find the rideshare car insurance policy to match your needs:
- Research rideshare insurers. Not all car insurance providers offer rideshare cover, so you need to do some research to discover which companies give the protection you need. You’ll find more information about rideshare car insurance providers further down this page.
- 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?
- Find suitable policies. Some insurers only offer a rideshare extension on their comprehensive car insurance policies and not on lower levels of cover, so you need to find a provider that offers rideshare insurance with your chosen level of cover.
- 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 rideshare car insurance is the perfect fit for you and your vehicle.
- Consider expert help. Having trouble finding a suitable policy? You might want to ask an experienced insurance broker to help you find a car insurance policy that covers rideshare driving and meets all your needs.
Why speak to a broker about rideshare 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
Check out our guide to car insurance brokers for more details on how to find a good broker.
Which insurers offer rideshare extensions?
A growing number of insurers are offering cover for Uber drivers. Currently, you can find the rideshare extension with providers like Allianz.
To help compare your options, you may want to get quotes from each and then use the Uber earnings calculator to see how well the policies suit your budget. This calculator can help you compare earnings next to the costs of insurance premiums, car maintenance, Uber financing programs and more.
For the answer to other questions you may have about Uber, check out our guide here.
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:
- Your rideshare car insurance policy covers damage to another driver’s vehicle or property
- If you have a comprehensive rideshare car insurance policy in place, you are also covered for damage to your car
- 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