Rideshare Insurance: What Every Driver Needs to Know

In this post, you'll learn everything about rideshare insurance, including coverage types, costs, legal requirements, and how it compares to personal car insurance.

What is Rideshare Insurance?

Rideshare insurance is a specialised policy designed to cover drivers who use their personal vehicles for ridesharing services like Uber or Didi. Unlike personal car insurance, which typically excludes commercial use, rideshare insurance ensures you’re protected while driving passengers for hire.

Why Regular Car Insurance Isn’t Enough

Many drivers assume their personal auto insurance will cover them when they drive for rideshare services. However, standard car insurance policies typically exclude commercial activities, leaving drivers exposed to financial risks in the event of an accident. Essentially, if you are using the vehicle for a purpose you haven’t disclosed to the insurer, they are very likely to refuse your claim, leaving you financially exposed to the cost of repairs for your car and any other vehicle you’ve damaged.

How Much Does Rideshare Insurance Cost?

The cost of rideshare insurance varies based on factors such as your location, driving history, and vehicle type. The bad news is, like most insurance costs (and costs in general) these costs are rising. Research conducted by Splend in March 2025 shows that on average Rideshare insurance costs range from around $4,500 to $6,500 per year, rising to as much as $8,500 - $12,500 per year for some EVs and luxury vehicles. And these are averages – for drivers who live in areas deemed “higher risk” these costs could rise to as high as $18,000 or more per year! For luxury vehicles that are eligible for Uber Premier, it also may be extremely difficult, and in some cases impossible, to get rideshare insurance at all for these vehicles, depending on your circumstances.

Insurance costs can vary greatly by provider and area, for example:

Sample Insurance Quotes for 2023 Yaris Cross Hybrid

Table of insurance quotes obtained as at March 26, 2025 for Yaris Cross Hybrid for a 30 year old male driver with no accident history in the last 5 years insuring a 2023 Yaris Cross Hybrid GX with comprehensive rideshare cover including roadside assistance and hire car using different addresses across 3 mainstream insurers who offer rideshare coverage.

Sample Insurance Quotes for 2024 Mercedes-Benz EQB 250+

Table of insurance quotes obtained as at March 26, 2025 for a 30 year old male driver with no accident history in the last 5 years insuring a 2024 Mercedes-Benz EQB 250+ with comprehensive rideshare cover including roadside assistance and hire car using different addresses across 3 mainstream insurers who offer rideshare coverage.

Sample Insurance Quotes for 2024 BMW i5 eDrive40

Table of insurance quotes obtained as at March 26, 2025 for a 30 year old male driver with no accident history in the last 5 years insuring a 2024 BMW i5 eDrive40 with comprehensive rideshare cover including roadside assistance and hire car using different addresses across 3 mainstream insurers who offer rideshare coverage.

Where to Get the Best Rideshare Insurance

Rideshare drivers can obtain insurance from specialised providers, traditional insurers offering rideshare policies (although many no longer offer this option), or through vehicle ownership plans that include built-in coverage—like Splend’s all-inclusive Flexi Own plans.

Do Rideshare Companies like Uber Provide Insurance?

It can be confusing to understand what the Insurance offered by companies like Uber to drivers include. Drivers can wrongly assume that Uber covers damage to their car and others when they are undertaking work on the platform. This isn’t exactly accurate.

What Uber Insurance does cover:

• Personal accident/Injury coverage (e.g. accidental death and disability, fractured bones, temporary disablement)

• Cover if you can’t work (due to being injured while on-trip)

What Uber Insurance doesn’t cover:

• Compulsory third party insurance (Insurance mandated by the government covering injury to third parties)

• Motor vehicle insurance (damage to your vehicle)

• 3rd party Motor vehicle insurance (damage to other vehicles you may have an accident with)

What Happens If You Drive Without Rideshare Insurance?

Without adequate coverage, drivers face significant out-of-pocket expenses and lost income. While some drivers may be tempted to not disclose to their insurer that they are driving for rideshare, in the event of an accident the insurer is likely to not pay the claim if they discover a driver was driving for rideshare (remember your passengers will be the witnesses in any accident that happens while undertaking a rideshare trip).

Not having adequate insurance could leave you open to being liable not only for the damage you may cause to your own car but also to other vehicles in the case of an accident. If a driver has an accident with a luxury vehicle this could leave them liable for hundreds of thousands of dollars in damages.

Risks of Not Having the Right Insurance Cover for Rideshare

Some drivers opt for unregulated taxi clubs offering dubious insurance policies. These are often unlicensed and may leave drivers financially unprotected. Read more about the risks.

Can You Deduct Rideshare Insurance as a Business Expense?

Yes! In most cases, rideshare insurance is a tax-deductible expense for self-employed drivers. Splend’s Flexi Own plans can also be tax deductible as you are using the vehicle for income generation. We advise you to talk to an accountant for advice on what you can and can’t claim.

Why Predictable Costs Matter for Rideshare Drivers

Fixed expenses help drivers manage cash flow and maximise profits. Splend’s Flexi Own plans bundle insurance with the vehicle cost for added peace of mind and saving drivers the hassle of managing separate policies, with monthly or annual premiums.

How Splend is making insurance more affordable for Rideshare drivers.

At Splend, we ensure our drivers get the best rideshare insurance rates by offering a 10% price beat guarantee on comparable policies from approved providers. Simply bring us your comparable quote (for a vehicle available on our new Flexi Own plans, with like-for like inclusions including free hire car in the event of an accident) and if your quote is lower than the cost of our damage and loss cover for that vehicle we will beat it by 10% and lower your weekly payment by the equivalent amount.

Splend’s Flexi Own plans give you the confidence and peace of mind that you have the right cover for rideshare and are paying the lowest possible price for your vehicle.

Check out our all-inclusive rideshare car ownership plans and start driving with confidence today!

About Splend

Splend makes car ownership easier, more affordable and more accessible for rideshare drivers by building everything they need to earn more and pay less into one affordable weekly payment. It’s smooth driving, with no surprises and the lowest total ownership cost you’ll find – which is how car ownership for rideshare drivers should be.

For more information about Splend, make an appointment and drop by to your local Splend Hub, email us, or say hello on 1800 775 363.