Uber Car Insurance in Melbourne
Rideshare driving for services like Uber can be a great way to earn extra cash and put your own car to some profitable use. However, when it comes to insurance, things can get a little tricky. If you’re using your everyday car, it is covered by your regular car insurance but what about insurance from your rideshare company? Or the safety of your ridesharers? It’s important for your Uber car to be insured so you don’t have to worry when something unfortunate happens.
With all that driving and all those people hopping in and out of your car, it only takes one wrong turn to put you on the hook for thousands of dollars in damages and claims. In Melbourne, Australia it’s illegal to drive without at least a CTP(compulsory third party) insurance for every vehicle on road; however, not having additional insurance could leave you financially vulnerable if you were involved in an accident – even if you are not at fault.
Do you really need any insurance?
With compulsory third party insurance which is required for driving a car in Melbourne, the question is “ Do you really need any other insurance for uber ridesharing?”
Just because you can opt out from insuring your can, doesn’t mean it has no added benefits. The justifications for not insuring your car may be:
- You are a safe driver: you may be a safe driver, but you’ll never know how the fellow drivers on the road are. Having an insurance will at least help you make a claim when you are not the one at fault.
- My car isn’t worth insuring: even if you consider your car just a metal scrap piece, it might end up hitting a new shining porsche. This is when a third party insurance will come in handy.
- Insurances are too expensive: the slightest of damage may cost you hundreds of dollars. And with all the repairs, the time needed will add up to your losses. Having insurance will cover up for all the premiums you paid.
Do you need Uber insurance in Melbourne?
When Uber first started the ridesharing service in Australia, there were some concerns such as whether or not drivers and their passengers were insured in the event of an accident as an Uber vehicle is somebody’s personal vehicle and not a commercial one!
So to adjust to changing times, the insurers now include Uber drivers and other ridesharers by expanding their horizons.
Ordinary car insurance policies typically only cover you for private use, so unless you specifically choose rideshare cover from your provider, you generally won’t be covered.
What kind of insurance should you opt for?
As off we know that having your car insured, be it for personal use or for ridesharing purpose is very important. And now the question is which car insurance should you choose?
There are four different types of car insurance in Australia (Melbourne), and only one of them is mandatory to drive legally on roads.
Compulsory third party insurance, also known as CTP insurance or a green slip provides compensation for anyone injured in a traffic incident, and is mandatory in all states and territories in Australia so also in Melbourne
All other types of car insurance are optional, but CTP insurance doesn’t provide any compensation for property damage, so it can be financially risky to drive without at least some level of additional insurance coverage for your personal use let alone a vehicle for ridesharing services such as Uber.
If you’ve signed up to a ridesharing service, you’ll probably be using your car more than when it was just for private use, so you will want to take extra caution.
The insurances you can choose from are:
- Comprehensive car insurance:
Covers accidental loss or damage to your car, as well as the cars and property of others caused by the use of your car. So, if you’re in an accident, this will help you get back on the road and earn money again ASAP. Great car insurance for Uber drivers. This will cover you for accidental loss or damage caused by the use of your car for personal or ridesharing purposes such as Uber.
- Third Party car insurance:
Third party property insurance covers you for the damage your vehicle does to other people’s property. If you’re at fault in an accident, your third party property insurance will pay for repairs to other vehicles and property, but it will not pay for repairs to your own vehicle. It will cover the damage caused to other people’s property caused by your car. Uber will allow its driver-partners to register their vehicle under Uber only when they have a third party property car insurance policy. Any of the damage you might cause to another person’s car or property while behind the wheel, but not your own.
- Fire, Theft and Third Party Property Damage:
It has all the same benefits as the third party insurance but will also cover for loss or damage to your car caused due to fire, theft or attempted theft.
Another big question is what about the passenger in an Uber?
If you are a passenger who used an Uber and found yourself in an unfortunate incident which caused you injury, would you be covered? And the answer is yes.
The passenger is covered by the compulsory third party insurance which is mandatory to register as an Uber driver. However, to take the advantage you will need to report the event to Uber and the police.
The reporting of the accident can be done very easily on the Uber app and then you can make a claim.
Best Taxi/Rideshare insurance in Melbourne:
With all that said, getting into an accident will still take a toll on you. Doing all the paperwork and claiming for the damage caused by the accident is too much of a hassle.
If you are looking for the best insurance for rideshare Melbourne or Taxi insurance in Melbourne at the most affordable prices, the MRC club is your one stop destination.
Melbourne Rideshare Club is a group of experienced individuals working in the field of ridesharing for years. Melbourne Rideshare club is a non profit organization committed to help the members of the club. MRC focuses on getting you all the help needed so that you can get your vehicle on the road as soon as possible.
We at MRC take care of our members be it taxi drivers or ridesharers like Uber and give them all the assistance they need. Being a member you can also reap the benefits of claims through the club.
To make a claim you have to report the accident within the first 48 hours of the accident. You can simply go to the website and make a claim by filling up a form or simply report the incident.
The forms are of two types:
- Accident Claim Form
- Report only form
Or you can visit the nearest MRC office and take help of the executives in filling up the form and making a claim.