Breaking Down Commercial Car Insurance for Uber, e-Hailing & Taxi Drivers

E-hailing services have transformed South African private transport, and most would agree that it's for the better. Thanks to services like Uber, Bolt and inDrive, passengers can conveniently request and track affordable transportation services from just about any location in the country. This is key for workers, too, as it gives drivers the flexibility to earn extra cash on the side by aligning with a trusted company that has an established platform. If you are considering joining the ranks of South Africa's e-hailing drivers, exploring your Commercial Car Insurance options is a good idea. Here's why insurance for Uber drivers should be at the top of your priority list and how Budget Insurance can meet your Business's Car Insurance needs.

The reason to get Car Insurance for Uber drivers & e-hailing services

Being an e-hailing driver is an attractive job for many. It allows you to set your hours, choose the jobs you want to take, and use your vehicle to conduct business. If you consider yourself a good driver, this could be the perfect job for you. At the same time, being an e-hailing driver will have its unique challenges — especially in South Africa. As e-hailing drivers use their cars for business purposes, they would not be covered under standard car insurance. A recent study[1] has revealed that South Africa faces a high number of car accidents each year, which is all the more reason for Uber drivers and other e-hailing services to invest in insurance. 

Understanding the insurance risks that commercial drivers face

It's common sense that if you use your car for business purposes, you would need Business Car Insurance, and some e-hailing services require their drivers to take out mandatory in-house insurance. However, your insurance needs as an e-hailing driver could go beyond this or standard Business Car Insurance offerings on the market. Here are a few risks that explain why: 

• Insurance gap risks — Using your car for e-hailing differs from a traditional taxi service in that you will use your car for business purposes. You may not work set shifts without interruption during this period. It means that you could unexpectedly shift from accepting a ride to running a personal errand during your day, be en route to picking up a passenger. You will need a Commercial Car Insurance product that leaves no coverage gaps between you being available as a driver and transporting a customer. 

• Accident risks — Your inclusive insurance may not cover you completely. For example, you could get coverage for third-party or liability claims but not for repairing your vehicle after the collision. Time spent without being able to repair your car is time spent not earning money. 

• Injury risks — You may not be covered for injuries sustained by passengers should you have an accident while transporting someone. You could also experience gaps in your coverage unless you have existing medical insurance. Your injuries could put you out of work for months or even disable you entirely. 

The point of customised Commercial Car Insurance is to address the risks that e-hailing drivers commonly face and work best with your existing insurance coverage. Knowing that you are covered for almost anything that could happen to you on the road can allow you to focus more on making money and serving customers to the best of your ability rather than worrying about legal implications and risks on the road. 

InDriver, Bolt and Uber Insurance policies

Currently, Bolt, Uber and InDriver have individual insurance policies. InDriver currently does not offer built-in insurance, while Bolt offers drivers free automatic rider liability insurance in South Africa that covers all Bolt Trips. Uber offers Partner Injury Protection offering free coverage for emergy emergency medical treatment and lost earnings while you're in transit, which also covers passengers. 

However, there are insurance exclusions and limits for these e-hailing services, including Uber Car Insurance, which is why it is recommended that commercial drivers supplement their free insurance with Commercial Car Insurance. The built-in insurance packages also don't always provide you with full comprehensive coverage should you work for more than one e-hailing service at a time. 

Commercial Car Insurance is suitable for Uber, e-hailing Several distinct benefits accompany taking out Commercial Car Insurance beyond the standard financial compensation benefits. There are options you can include in customised coverage that provides you with an emergency vehicle should your car be rendered unusable for a period. Their third-party liability coverage can account for damage to property. 

Factors influencing Business Car Insurance premiums

As with all insurance products, you must pay regular insurance premiums, which will vary according to your risk profile as a private and commercial driver. This will take into account the following key factors:

• Your profile: how long you have been driving, your driving history. 

• Your car: The type of vehicle, age of vehicle, vehicle's attractiveness to criminals, car's accident history. 

• Your working conditions: when and where you will be driving, your years of e-hailing experience, where the car is parked when not in use and what security measures are present. 

• You can also influence how high or low your premiums are by choosing a higher or lower deductible or coverage limit. 

Get a Business Car Insurance quote

Now that you know just how important Commercial Car Insurance is and how it can cater to your individual needs, you will need to request a Business Car Insurance quote. Whether you need Uber Car Insurance or insurance for another e-hailing service platform, Budget Insurance can assist you in getting started with cover today. Simply fill in a request for a quotation, and we will get back to you. 

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Sources:

[1] Mybroadband:  South African drivers among worst in the world — Study

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.