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Rideshare insurance is for drivers who take paying passengers through an app, plus chauffeurs, hire car operators and owners of a few cars. Before anything else, check that your policy accepts carrying passengers for reward at all. Fortis Risk Solutions compares wordings from insurers that accept this use and checks how each treats time spent logged on and waiting for a fare. We also look at hire car cover while yours is being repaired and at named driver conditions on a fleet. After an accident, we help you lodge the claim. Have your vehicle details and driving history ready. Call 03 7046 3766 or send an enquiry.
What Rideshare Insurance Covers
Rideshare insurance covers the vehicle, damage to other people's property and the income of drivers and operators who carry paying passengers, from single rideshare drivers to chauffeurs, hire car operators and small fleets. A standard private car policy may exclude carrying paying passengers, so check the wording before you accept your first fare.
The exposure is time on the road. A car spends long shifts in city traffic and late-night pick-ups. A rear-end collision on the Monash Freeway takes it off the road for weeks. A passenger damages the interior. A driver hurts their back or falls ill and earns nothing while recovering. A fleet loses earnings every day a car sits at the panel beater.
In Victoria, a vehicle used for commercial passenger services must be registered as a commercial passenger vehicle, and drivers need accreditation through Safe Transport Victoria. Injury to people in a road accident is handled by the TAC through registration, so rideshare insurance deals with the car and property damage. Public liability insurance can cover incidents away from driving, such as a passenger tripping at a pick-up point.
Fortis Risk Solutions arranges rideshare insurance in Melbourne and across regional Victoria as part of our business insurance range, from offices in Box Hill and Hawthorn. Single drivers are usually placed on business car insurance written for passenger work. Car rental businesses that also service or sell vehicles may need motor trade insurance as well.
Who this covers
Businesses in this group include:
- Rideshare drivers
- Chauffeur and hire car operators
- Small rideshare fleets
- Car rental businesses
If your business is not listed, ask us. The sections below are the starting point for any business in the group.
Rideshare Insurance: Cover Sections and Benefits
Related Client Case Studies
Cases from the Fortis Risk Solutions broking team. Client names have been removed.
Client case: Accidental Damage to Own Vehicle
The client situation: When the driver (our client) turned left from a main road into a service lane on a highway, she did not notice a passing car and collided with it at high speed in her newly purchased vehicle.
Her own vehicle was severely damaged and, given the high cost of repair, was assessed as a total loss.
Damage to her own vehicle and the third-party vehicle was close to $200,000 in total.How the policy responded: The Comprehensive Private Motor policy helped cover the cost of replacing the insured vehicle with a brand-new vehicle of the same make and model, subject to the applicable excess and policy terms.
The insurance company handled all the remaining compensation to the third-party vehicle owner, so our client did not have to go through that costly and time-consuming process herself.How we handled the case: At renewal we secured competitive insurance terms and premium for the client’s replacement vehicle after the total loss. It was her first incident in five years of driving in Australia, and we compared all the potential insurers to obtain the more competitive terms and premium for her.
How Fortis Risk Solutions helps: A claim does not end at the payout. We go back to the market at the next renewal so one accident does not set the premium for years.
Client case: Tour Coach Collision and Passenger Injury
The client situation: A travel and tour company was transporting passengers on a sightseeing trip when the coach was involved in a collision with another vehicle. The accident caused significant damage to the coach, and one of the passengers sustained injuries and subsequently made a claim against the tour operator.
How the policy responded: The Commercial Motor Insurance policy helped cover the accidental damage to the insured coach. As the policy also included Bodily Injury Liability cover, it responded to the tour operator’s legal liability for the injured passenger, including eligible compensation and associated legal costs, subject to the policy terms and applicable statutory motor injury arrangements.
How Fortis Risk Solutions helps: Passenger vehicles need liability cover that an ordinary commercial motor policy may not include. We ask for it when the policy is placed.
Every policy is different and the outcome of a claim depends on its terms. As your broker, Fortis Risk Solutions compares insurers and policy wording before you buy, and lodges and manages the claim for you when something happens. Talk to us about your own cover.
Rideshare Insurance FAQs
Possibly not. Many private car policies limit use to private purposes and may exclude carrying passengers for payment. If you have an accident during a trip and the use was not disclosed, the insurer may reduce or refuse the claim. Check the wording and tell your insurer before your first trip, or move to rideshare car insurance written for the work.
The TAC covers injuries from transport accidents in Victoria and is funded through registration, so your motor policy does not cover people. Rideshare insurance covers damage to your car and your liability for damage to other people's property. Your insurer will ask how the car is registered, how many hours it works and who else drives it.
A rideshare driver working as a sole trader generally has no workers compensation. A personal accident and sickness insurance policy can pay a weekly benefit if injury or illness stops you driving, subject to waiting periods and the policy wording. TAC benefits may apply after a road accident, but they do not cover illness or injuries away from the road.
Usually they do. Luxury vehicles carry higher agreed values, and operators often run corporate accounts, weddings and airport transfers where clients ask for a certificate of currency before they book. A business insurance package covers the office, booking systems and equipment. Declare every driver, including casual drivers who fill in on busy weekends.
Yes. Owners running several rideshare or hire cars usually move to a fleet policy, with every vehicle on one schedule and one renewal date. Business interruption insurance can cover lost earnings and ongoing costs after an insured event such as a fire at your depot or garage, depending on the policy wording. Driver lists and accreditation details go into the proposal.
Rideshare wordings differ on passenger use, hours on the road, driver ages and who else can drive the car. As your broker, FRS helps you disclose the work accurately, structure vehicle values and excesses, compare insurers that accept commercial passenger use and act as your advocate at claim time. We work for you, not the insurer, and we review the policy when you add a car or a driver.
The right rideshare policy is the one that accepts what your car actually does. Many private car policies do not cover carrying paying passengers, so first confirm that rideshare use is declared and accepted, including time logged into the app between trips. Then think about income. If an accident or illness keeps you off the road, personal accident and sickness cover can replace part of your earnings, depending on the policy wording. Call 03 7046 3766 and we can compare wordings for you.
Talk to a broker about Rideshare Insurance
Call 03 7046 3766 on weekdays between 9:30am and 6pm, email admin@fortisrisksolutions.com.au, or send an enquiry and a broker from our Box Hill or Hawthorn office will come back to you about rideshare insurance. Tell us what the business does and what the lease or contract asks for, and we take it from there.