It is worthwhile though considering the insurance aspects of this latest option. Nearly every standard private motor insurance policy will contain an exclusion that goes something along the lines of cover being excluded if the driver of the vehicle is using the vehicle for fare or reward…
A quick look at Uber’s sign up page reveals the following:
All cars driven by Australian ridesharing driver-partners must be:
• road registered and insured for compulsory third party (CTP) in your state or territory of residence, and
• insured for a minimum of third party property damage, with the driver-partner as policyholder or named insured driver.
What they don’t tell you is the state specific information around licencing, in Victoria this is administered by the Taxi Services Commission. Effective from 9th October 2017 the owner of the vehicle needs to obtain a Hire Car Licence which is now a low annual cost of just $52.90. In addition to this each Uber driver needs to obtain Driver Accreditation at a cost of $73.20, which lasts for 3 years. It does take a few weeks, but it’s not a large expense to avoid hefty fines and make sure that you’re operating within the current legislation.
Once you have the appropriate licence and accreditation for operating a commercial passenger vehicle you then need to contact your insurance provider and ensure that you will be covered while operating the car as an Uber. Make sure that they are EXTENDING cover to include use for hire or reward, and not noting your Uber usage with an EXCLUSION, alternatively you might want to consider a specialised Hire Car Insurance policy.
Finally, it’s important to be aware that you are operating a business. So you should also consider a liability policy that covers you for incidents related to operating a vehicle which aren’t covered by normal car insurance or vehicle registration. Common examples include passengers injuring themselves getting in and out of your stationary vehicle, and damage to someone else’s property in your vehicle at the time of an accident. This type of insurance is usually an optional extension of a Hire Car Insurance policy, or can be purchased separately.
The best news is that options DO exist! But normal car insurance policies will not afford the right level of cover as a standard offering so it’s important that you know what you are and aren’t covered for before something happens.
Safe travels people – if in doubt – contact an insurance broker!
(Note: licencing and accreditation information accurate as of 9th November 2017 and may be subject to change, for the latest information visit www.taxi.vic.gov.au or https://www.vicroads.vic.gov.au/…/licence-and-…/taxi-licence)