Rideshare drivers have to pay extra for their CTP green slips when they make trips with fare-paying passengers. Food delivery drivers pay the same as other drivers (for the same details). Find out how much you could pay for a rideshare green slip.
Is rideshare the same as food delivery?
No, rideshare is different from food delivery. Rideshare drivers use their own vehicles to transport people. Food delivery drivers use their own vehicles to deliver food.
Food delivery drivers pay the same for their green slips as other drivers (for the same details). Rideshare drivers pay more for their green slips depending on how far they drive with fare-paying passengers.
Do rideshare drivers pay more for green slips?
Yes, rideshare drivers pay more for green slips. They must pay a fixed and a variable amount:
- The fixed amount is the usual green slip premium that other 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.
Essential to know
- To pay your insurer the correct variable amount, you need to keep odometer readings.
- Remember, readings apply only when you have a fare-paying passenger.
Do CTP insurers need to know I do rideshare or food delivery?
Yes and no. CTP insurers don’t directly ask about rideshare or food delivery. However, they do ask whether you drive for business, claim GST and how far you travel. They ask these questions:
- Do you use your vehicle for business? – You must tell the insurer.
- Do you want to claim for GST? – This increases price.
- How far do you travel each year? – An odometer is necessary for rideshare trips.
- Do you have other insurance on the vehicle? – You need some other motor insurance.
- Do you have demerit points? – The demerit threshold is 14 (13 for other drivers).
- At-fault accidents in past 5 years? – Any claims push up green slip prices.
What does a rideshare green slip cost?
To find out the cost of a green slip, we used the green slip calculator. We calculated the cost of a green slip 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.
Metro owner pays:
- Fixed amount of $500-$600, plus
- Variable amount of $1,000 (10,000 kms at 10 cents per km)
- Total cost of rideshare green slip: $1,500 to $1,600.
We compared him with 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.
Country owner pays:
- Fixed amount of $350-$430, plus
- Variable amount of $825 (12,500 kms at 6.6 cents per km)
- Total cost of rideshare green slip: $1,175 to $1,255.
The lower the distance travelled, the cheaper your green slip. However, you need to weigh up the extra cost of your green slip against the extra income you could earn while working as a rideshare driver.
Compare green slip prices for your personal circumstances.
Why do rideshare green slips cost more?
Using your car more often increases your chances of having a road accident and injuring people. There are other potential risks, such as dealing with drunks or a passenger who suddenly opens a door in traffic and hits someone. (Food delivery drivers also experience more hazards, such as having to park in awkward places.)
Rideshare or food delivery will probably increase your overall insurance premiums and, if you make a claim, push them up again.
However, one advantage of being a rideshare or food delivery driver is you use your car more. Most cars stay parked for 95% of their useful life, or 49.4 weeks per year. If you pay $2,132 per year for registration and CTP for only 2.6 weeks per year, it costs you $820 per week for that short period. (That doesn’t include an average car loan payment of $211 pw.) So it makes sense to use your vehicle for income.
Do rideshare and food delivery drivers need motor insurance?
Yes, rideshare drivers must have some form of motor insurance, usually third party property insurance. However, comprehensive insurance is better because it covers the driver’s vehicle as well as the vehicles and property of others. Food delivery drivers may find insurance designed specifically for them.
Always check the policy first. Some motor insurers exclude drivers of private vehicles with paying passengers or when used for food delivery:
- Budget Direct, Coles, Kogan and Qantas don’t cover ridesharing or food delivery.
- ANZ, Bingle and QBE provide cover but with exceptions.
- Bingle covers rideshare but not food delivery, QBE does not cover food delivery and ANZ covers food delivery with Comprehensive Plus.
See our page especially for rideshare drivers. Drivers of rideshare vehicles can also use the industry portal and driver vehicle dashboard to help them stay current.
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