Finding an insurance plan that serves the interest of rideshare drivers could be considered a cause for concern within the industry.
There’s no doubt that Uber provides quite a different approach to transportation system and this sometimes creates a bit of complication for related industries. The lawmakers in some countries don’t know where or how to group Uber. The insurance companies don’t know how to go about covering Uber drivers and their vehicles – there is a struggle to find the right balance to protect all invested parties. In addition to this,
Uber has also transformed what car ownership means, especially since private car owners can give their cars up on the platform. Before now, private car insurance accounted for every scenario that a car owner could get into while commuting in their vehicle. 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. Also, private insurance plans are built to cover incidents involving a car owned by a person and used exclusively by them.
To throw a wrench into the works, 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.
To protect its drivers, Uber sometimes enter into deals with Insurance companies in certain countries to secure adequate Insurance cover for Uber drivers and partners. One of such countries is South Africa.
Uber Car Insurance Requirements?
Before we delve into Insurance firms in South Africa, let us quickly review Uber car insurance requirements in South Africa, just as a reminder:
- Third party property damage
- Passenger Liability cover to the value of R5 Million per annum
- Minimum R50,000 personal accident cover per vehicle passenger
While uploading your Insurance documents:
- Upload a clear / readable copy of your Vehicle Insurance Policy
- Vehicle Registration Number has to match the vehicle that is on your Uber account
- Ensure the policy clearly states the vehicle is insured for a Business Use. Private Use will not be accepted
- Ensure the policy clearly states the vehicle is comprehensively insured
- Ensure the Policy Number is clear / readable
- States Insurance Provider Name
With comprehensive vehicle insurance, there is adequate insurance provision made for drivers for private and commercial purposes.
Review of Insurance Firms in South Africa for Ride sharing
Insurance firms exist in huge numbers. However, finding a firm that has taken time to tailor its services to suit the needs of Uber drivers can prove problematic. Hence, Uber has negotiated a good deal with VUM insurance brokers on behalf of Uber partners and drivers where drivers pay for just the kilometres they drive and premium is deducted from the driver’s weekly fares.
VUM Insurance (Vulindlela Underwriting Managers)
- Pricing based on a per km rate.
- Initial base rate of 23c per kilometre, for vehicle value ranges between R190 000 and R210 000.
- Where vehicles are not owner operated, a 30% increase will be applied.
- Base rate is adjusted each month depending on driver behaviour and driver’s uber rating. Rates adjusted to as low as 17c per km for low risk driver-partners.
Cover & Premiums
- Premium per vehicle for full comprehensive cover, includes passenger liability, personal accident cover (R50 000 per individual), SASRIA and roadside assistance. Premium also includes the cost of the Theft/Hijacking Recovery System, as well as the Telematics Fee.
Another typically fair Insurance is provided at GIB insurance. The brokers at this firm will provide you with competitive rates that ensure that you have the ‘insured peace’ that you want. Their offer is specifically built for rideshare drivers and this is a major criterion when choosing what insurance firm to use – you need to find a firm that answers your ‘Uber car insurance questions’. You can contact the firm by using the mail: firstname.lastname@example.org. Alternatively, you could contact the brokers Himal Daya or Rosalee de Buys on 011-483-1212 to get well vetted information on how to solve your insurance related issues.
Nice to Know
If you want to become an Uber partner in South Africa, it is necessary to know that you will utilize a certain amount of money for fuel and on other costs like car maintenance, insurance costs, car depreciation, and Uber royalties. If you are looking to do proper due diligence before acquiring a car and want 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 his/her fleet, then either of our Uber Kits at the top right of the linked page:
We hope this post alleviates your worries about Insurance. If you are outside South Africa, visit the Uber office in your city to discover if good Insurance deals like this exist in your city.
For our blog posts on some of Uber’s Services, see the links below:
- How to Become an Uber Driver (in South Africa)
- An Introduction to Different Uber Services
- Perspectives on Uber Insurance From an Industry Expert
- Uber Insurance Isuues: Dont Believe The Hype
- List Of Uber Approved Cars In Johannesburg
For other popular posts you might be interested in, check the links below:
- How Much Do Uber Drivers Make?
- How to Verify Your Uber Revenue
- How to Find the Highest UberX Fares
- How to Become an Uber Driver (In the US)
- Uber Customer Service