Uber Insurance in South Africa

Finding an insurance plan that best serves the interest of Uber or 'rideshare' drivers, could be considered a cause for concern...

Uber or Rideshare Insurance
protects your investment

Why Uber or Rideshare Insurance:

There is no doubt that Uber provides quite a different approach to our known transportation system.

Uber has transformed what car ownership means, especially since private car owners can also give their cars up on the driving platform. Since the inception of ridesharing has made it possible for private car owners to commercialize their vehicles, it has become quite problematic for insurance companies to cover many Uber drivers under a regular private car plan, as private insurance plans are built to cover incidents involving a car owned by a (private) person and used exclusively by them.

Ridesharing as a business, is not entirely equal to commercial transportation — hence, insurance companies can neither cover Uber drivers under private plans, nor subject them to the same pricey procedure that cover taxis and other transportation providers.

Pricing / Premiums:
•   Your premium is based on your individual risk profile;
•   High-risk clients may encounter problems finding insurance cover;
•   Premiums may or may not be guaranteed for 12 months - discuss with your Broker;
•   Your premium typically depends on:
      -  Whether you’ve had any previous claims;
      -  Your previous insurance history;
      -  Night-time storage and security of your vehicle.

The minimum insurance requirements an Uber (or rideshare) driver needs to consider, are the following:
•   Third party property damage to the value of R5 million;
•   Passenger Liability cover to the value of R5 Million per annum;
•   Minimum R50,000 personal accident cover per vehicle passenger.

Some insurance companies have tailored its services to suit the needs of Uber drivers and their partners, where drivers just pay for the kilometres they drive and where the premium is then directly deducted from the Uber driver’s weekly fares, thus making cash flow simpler and easier.

As an Uber driver, you can choose comprehensive cover, or alternatively choose the specific perils you would like to be covered for — discuss your needs with a reputable Broker.

Uber partners on the other hand, have other considerations to also bear in mind: You will utilize a certain amount of money for fuel and on other costs like car maintenance, insurance costs, car depreciation, and Uber royalties. It is advisable to do a proper due diligence before acquiring a car and then to assess the profitability of Uber as a business — whether as a one man business (a sole Uber driver), or as an Entrepreneur with multiple Uber cars in the fleet.

DIB Solutions (Pty) Ltd have partnered with reputable underwriters and various insurance companies in order to assist our clients with appropriate Insurance cover – we can therefore also assist clients with tailor-made products (where applicable) at competitive premiums. We provide a professional and personal service, as well as build long-term relationships with our clients. Discuss your individual needs with one of our experts.


Also note some of the important considerations when looking for Uber or rideshare driver Insurance:

  • The full comprehensive insurance cover option, normally includes the following: Accidental and intentional damage; Theft and hijacking cover (which includes the recovery system); Third party liability cover; Roadside assistance; SASRIA, and may include the Telematics fee;
  • In the case of a claim, is excess fixed or not?
  • Consider pricing based on a 'per km rate', where the initial base rate is in the range of 23c per kilometre (for vehicle value ranges between R190 000 and R210 000). Where vehicles are not owner operated, a 30% increase may be applied. Base rate may be adjusted each month, depending on driver behaviour and driver's Uber rating. Rates can be adjusted to as low as +/- 17c per km, for low risk driver-partners. (Note that costs listed here, may change);
  • Some insurance options for perils (other than full comprehensive cover), to consider:
    • Accidental and intentional damage;
    • Theft and hi-jack;
    • Acts of nature which should include hail, wind, storm, floods, earthquake and lightning;
    • Damage to glass;
    • Fire and explosion.
  • Fitment of a selected Ctrack device: To qualify for the pay as you drive option, all those covered are required to fit this device. Those with existing devices will need to cancel and switch to Ctrack;
  • Uber cars need to be clearly marked.

Optional considerations for Uber or rideshare driver Insurance:

  • Vehicle loss of use, which can be used to rent another vehicle while yours is: Damaged and being repaired, Damaged and not drivable, Stolen or hi-jacked;
  • Credit shortfall;
  • Deposit cover.
  • The following benefits, may or may not be included - discuss with your Broker:
    • Towing and recovery;
    • Keys and remotes;
    • Roadside assistance;
    • Ctrack tracking device at a discounted price.

Please contact us today for fast, friendly, professional advice and service!

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