🛑 The "App On" Risk
You just finished a shift driving for Uber or delivering for DoorDash. Exhausted, you clip a parked car while reversing. You call your insurer (NRMA, AAMI, Budget Direct, etc.) to lodge a claim. They ask one critical question: "Was your rideshare app turned on?" You answer yes. They reply: "Claim Denied." Why? Because you were operating a private vehicle for commercial gain without disclosure.
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| Driving for Uber or Doordash? |
The gig economy is booming across Australia, yet many drivers' understanding of insurance remains dangerously outdated.
Standard "Comprehensive Car Insurance" strictly covers Private Use (commuting, shopping, social driving). Almost every Product Disclosure Statement (PDS) explicitly excludes coverage if the vehicle is used to transport passengers or goods for payment.
What Uber Covers vs. What You Need
"But doesn't Uber provide insurance?" Yes, but it is limited. While platforms like Uber often hold a contingent policy (e.g., via Allianz) for Third Party Property damage while you are on a trip, there is a massive gap regarding your own car.
⚠️ The Danger Zone:
What happens when you have the app turned on, waiting for a job ("Available"), but haven't accepted one yet?
• Uber's Policy: Typically covers Third Party Liability, but pays $0 for damage to your car.
• Your Personal Policy: Pays $0 because you are technically "available for hire" (commercial use).
• Result: If you wreck your car in this phase, you are paying 100% of the repair costs out of pocket.
Rideshare Add-on
You do not necessarily need expensive "Commercial Taxi Insurance." Many major Australian insurers now offer a specific "Rideshare Add-on" to your personal comprehensive policy.
Note: Not all insurers offer this. Some budget brands will simply refuse to insure you if you mention rideshare. You may need to switch to providers known for rideshare tolerance, such as Allianz, NRMA, AAMI, or specialized insurers like ShareCover.
Chief Editor’s Verdict
Concealing your side hustle from your insurer constitutes non-disclosure (insurance fraud). In the event of an accident, insurers investigate; they can cross-reference with Uber/DoorDash records to deny your claim and cancel your policy.
Call your insurer today. Ask specifically: "Am I covered for my own vehicle damage while logged into a rideshare app?" If the answer is no, switch providers immediately.
The information provided in this article is for educational purposes only and does not constitute financial or legal advice. Insurance policies differ significantly between providers. You must read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) for any insurance product to understand the inclusions, exclusions, and limits. Coverage for rideshare activities is subject to specific terms and conditions set by Australian insurers.
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