Business Car Insurance: The Benefits of e-Haling & Uber Insurance

e-Haling and ride-sharing apps, like Bolt, Uber, inDriver, Taxi Live Africa and Tag Your Ride are growing in popularity. If you’re a driver for a ride-sharing brand, you know that your biggest asset is your car — and because you use it for business, personal car insurance isn’t suitable — you need Business Car Insurance. So, if you already are or if you’re considering becoming an e-hailing driver, rest assured that Budget Insurance has a team of experts who are ready to assist you.

The rise of e-hailing and Uber services in South Africa

E-hailing services have exploded in popularity[1] in South Africa since the first e-hailing service, Uber, entered the Market in 2013. In the years following, they’ve been joined by other e-hailing service providers, including Bolt and InDriver — collectively employing thousands of people while giving them freedom over their work schedule and earnings. 

Just a decade ago, South Africans who didn’t have private transportation and wanted to travel outside of standard operating hours had to get lifts from friends or hire expensive private taxis. During weekdays, people had to use unreliable public transport, which often ran late or not at all. 

That’s why e-hailing services have become so popular. They’re reliable and affordable. It also offers a double benefit, for both the users and drivers. Often integrating with phone applications, users can request and track trips with details on the driver and the car they drive, as well as their distance from the destination. At the same time, drivers can set their own hours and choose trips or routes suited to their schedules. 

Let’s imagine the scenario where Tom, a floor salesperson by day, decides he’d like to try his hand at being an Uber driver in the evening to make some extra cash. Tom owns his own vehicle and has flexibility. A typical day sees Tom working at his regular job during the day and then completing several e-hailing trips with clients in the evenings. 

Rideshare and e-Haling opportunities are a great way to make money on the side, or to develop a full-time job for yourself by joining the fleet of drivers offering these services in South Africa. However, before you embark on this intrepid adventure, you need to know why it’s crucial for you to have Business Car Insurance

How e-Hailing & Uber Insurance works

The requirements you must meet to become an e-hailing driver will differ from business to business. Whether you work for Bolt, InDriver or Uber, Commercial Comprehensive Vehicle Insurance for an e-haling business will be mandatory. You may have to use Uber-recommended insurance or choose Business Car Insurance.. However, it’s important to know that in South Africa, Car Insurance for Uber drivers or any other e-hailing service is the driver’s responsibility. 

As most e-hailing services in South Africa work in a relatively small market compared to areas like the USA, Uber doesn't cover the cost of Business Car Insurance. It only covers a small portion of medical insurance for drivers and passengers in case of an accident, which they call Partner Injury Protection cover[2]. Bolt offers Passenger Liability Insurance with similar coverage levels. This means you will need to invest in your own Car Insurance. As an Uber driver, when your Uber app is off, you are covered by your personal Car Insurance; however, as soon as the Uber app is switched on, you need Business Car Insurance because your vehicle is being used for hire. 

Insurance for Uber drivers and other e-haling services

You'll benefit from taking out your own insurance coverage, which will cover your car and fall under your name. You may need to provide an active policy name from the moment you begin driving or register as an e-hailing driver, which is why investigating your Bolt, InDriver or Uber Insurance options before starting the job is a good idea. It is also very important that you notify your insurance provider when you register as an e-hailing driver.

Don’t invalidate your car insurance

How you use your car will shape the type of coverage you need. Even if you sign up with an e-hailing service to deliver items instead of transporting people, you'll need Commercial or Business Car Insurance with a high enough liability limit. It's worth remembering that even though standard Car Insurance may be more affordable than Business Car Insurance, using this while using your car for business purposes could leave you vulnerable to the costs of accident damage or injury. This is because personal Car Insurance policies contain a list of exclusions  — and “driving-for-hire” is usually one of these.

Benefits of having e-hailing or Uber Car Insurance

Getting customised insurance created for e-hailing service providers is a good idea as it's been tailored to your unique coverage needs. Budget Insurance offers comprehensive coverage for e-hailing businesses, which includes: 

• Coverage of the repair costs resulting from a car crash.

• Liability cover for injured passengers so that their medical costs are covered.

• Car hire — should your car be stolen or rendered undrivable after an accident, you'll receive a cash payout so you can rent a car of your choice.

• In the case of accidental death, third-party injury or third-party property damage, you're covered for up to R20 million.

• If your passengers experience trauma or shock from witnessing/being involved in a car accident involving your vehicle, you get Passenger Liability cover for up to R20 million. Discover more about The role of car insurance in protecting against liability. 

• In case of a riot, strike or labour disturbance situation, you are covered by SASRIA[3] (South African Special Risk Insurance Association).

• After four claim-free years, you'll enjoy a no-claim bonus.

• Because your phone and GPS unit are instrumental to your work, you'll enjoy Business All Risk coverage to protect these items.

• Lifetime repairs for your car for as long as you drive it.

• The usual benefits Budget offers to all customers with Biz Assist, such as roadside assistance, emergency medical insurance and a business concierge service to help source and deliver affordable car parts, are also automatically included.

Get Car insurance for Uber drivers & other e-hailing services 

To make sure your e-hailing career offers you all the benefits you imagined without having to cut into it to pay for costly car repairs or replacing your vehicle out of pocket because you had the wrong type of Car Insurance, investing in Comprehensive Business Car Insurance designed for the e-haling industry will protect your assets and allow you to keep working as a driver for as long as you want. If you still have questions about getting coverage, Budget Insurance can address them and help you select a suitable insurance product that meets your needs. For more information, request a quote today.