It is undisputed that the most well known and widely used rideshare service operating in the world today is Uber. Launched in the USA in 2010, and expanding into Australia in 2012, Uber’s app-based service connects drivers known as “driver partners” who use their own personal vehicles to transport customers needing a ride.

Ridesharing in Australia is currently illegal in all Australian states and territories except for the Australian Capital Territory (ACT). In October 2015 the ACT government passed the Road Transport (Public Passenger Services) (Taxi Industry Innovation) Amendment Bill 2015 to amend the Road Transport (Public Passenger Services) Act 2001. The amendments to the Act will legalise and regulate the provision of ridesharing services in the ACT.

Working in an illegal industry also means things can get difficult if something goes wrong. Uber requires all drivers have insurance, but as ridesharing is only legal in the ACT, Uber drivers are in a very gray area particularly when it comes to insurance.

If you are considering signing up to Uber you should contact your insurer and check what your motor vehicle policy covers. In most cases insurers won't cover ridesharing services. Insurers could decline a claim if they discover the driver was taking money for rides. They could also drop coverage all together which could work against you if and when you seek any insurance cover as you would need to disclose that insurance had been cancelled or refused.

CMIB Insurance Services has access to Motor Vehicle Insurers that will provide full comprehensive cover for  Uber drive partners. Don’t have any doubt on your insurance – call us to discuss on 1300 133 577