As a rideshare driver, you pay extra for your green slip depending on how far you travel with a fare-paying passenger. You also have to make sure your motor insurance policy covers you for rideshare. Find out how much you could pay for a rideshare green slip.
Rideshare drivers use their cars more
One advantage of being a rideshare driver is you make more use of your car. Most cars stay parked for 95% of their useful life, or 49.4 weeks per year. If you pay $1,318 per year for registration and CTP for only 2.6 weeks per year, it effectively costs you $507 per week. That doesn’t even include a car loan payment of $190 pw.
However, using your car more often increases your chances of having a road accident. There are other potential risks in rideshare, such as dealing with drunks or a passenger who suddenly opens a door in traffic and hits someone.
Rideshare driving will probably increase your insurance premiums and, if you make a claim, push them up again.
Rideshare drivers need motor insurance
Unlike other drivers, rideshare drivers must have some form of motor insurance. The minimum is third party property insurance to cover damage to somebody’s else’s vehicle or property in an accident. Some prefer comprehensive insurance because it covers the driver’s vehicle as well as the vehicles and property of others. One rideshare company, Sheba, requires its drivers to have comprehensive insurance.
Some motor insurers exclude drivers of private vehicles with paying passengers. Budget Direct, Coles, Huddle and Qantas don’t cover any ridesharing at all. ANZ, Kogan, and QBE do provide cover but only if you drive less than 32 hours per week.
While Uber provides drivers with extra liability insurance for $10 million, Ola, DiDi, GoCatch and Shebah don’t offer any insurance cover.
Rideshare drivers pay more for a green slip
Rideshare drivers have to pay a fixed and a variable amount for their green slips.
- The fixed amount is the same annual greenslip premium that non-rideshare drivers would pay.
- The variable amount is based on how far you travel with a paying passenger:
10 cents per kilometre in a metro region, or
6.6 cents per kilometre if the journey started in a country region.
You need to keep odometer readings for your greenslip insurer. Remember, they apply only when you have a fare-paying passenger.
Use the greenslips.com.au Calculator for rideshare
When you use the greenslips.com.au Calculator for rideshare, you get the cheapest prices from all six insurers.
Our calculator doesn’t directly ask owners if they use their cars for rideshare. However, driving for business, claiming GST and travelling longer distances all add to the final greenslip price.
These questions are especially important:
- Are you using your vehicle for business? – You must tell the insurer.
- Do you want to claim for GST? – This depends on your income and increases price.
- How far do you travel each year? – An odometer is necessary for rideshare.
- Do you have other insurance on the vehicle? – You need some kind of motor insurance.
- Demerit points – The demerit threshold is 14 (13 for other drivers).
- At-fault accidents in past 5 years – Any claims push up premiums.
Rideshare drivers may have a higher demerit threshold but they have a lower blood alcohol limit of 0.02. Your vehicle must display a hire vehicle sign so police know this lower limit applies.
What will my rideshare green slip cost?
We used the greenslips.com.au Calculator for a safe metro rideshare driver who covers 20,000 kms a year in a Toyota RAV4 and claims for GST. He has fare-paying passengers for half the annual distance and pays 10 cents per kilometre on top.
- Fixed green slip: $452 to $785.
- Variable: 10,000 kms at 10 cents per km = $1,000
- Total cost of green slip: $1,452 to $1,785.
Next, we used the greenslips.com.au Calculator for a safe country rideshare driver who covers 25,000 kms a year in a Toyota RAV4 and claims for GST. He has fare-paying passengers for half the annual distance and pays 6.6 cents per kilometre on top.
- Fixed green slip: $319 to $542.
- Variable: 12,500 kms at 6.6 cents per km = $825
- Total cost of green slip: $1,144 to $1,367.
The lower the distance, the less expensive your green slip will be. However, you need to weigh up the extra cost of your green slip against the extra income you earn while working as a rideshare driver. Compare green slip prices for your circumstances.
See our page especially for rideshare drivers.
Drivers of rideshare vehicles can also use the industry portal and driver vehicle dashboard to help stay current.
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