E-Hailing Insurance Coverage

Understanding the Insurance Implications in the Sharing Economy

With the rise of the sharing economy, many vehicle owners are using their personal vehicles to work as e-hailing drivers on platforms such as Uber, Bolt and Shesha. This new avenue provides an attractive opportunity for extra income. However, it’s crucial to understand the potential risks and insurance implications involved to avoid unexpected financial losses and liabilities.

“While earning extra money by delivering food as an Uber Eats driver or transporting passengers sounds appealing, it's important to be informed about the associated risks. Many vehicle owners might not realise that using their personal vehicles for commercial purposes without proper insurance coverage can expose them to significant liabilities and damages,” says Ann Cloete from insurance brokerage and risk advisors Aon South Africa.

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Important Considerations Highlighted by Aon:

• Liability for Injuries or Death: When you use your vehicle for personal use, your standard liability covers injuries or death of passengers. However, once you start using it as a platform for income, you need commercial liability coverage.
• Criminal Incidents: Personal belongings of your paying passengers or items being delivered by you, are not covered in the event of a criminal incident.

The distinction between personal use and earning an income as an e-hailing driver is critical. “Personal motor insurance typically doesn't cover claims arising from commercial activities, making it essential to seek advice from a professional insurance broker. This ensures you’re protected against losses and liabilities when driving for a fee. While platforms like Uber, Bolt and Shesha offer limited insurance coverage, it’s vital to inform your insurance broker about your changed risk profile to prevent claim denials due to non-disclosure,” explains Ann.

Key Points to Discuss with Your Insurance Provider:

• Declaration of Business Use: Inform your insurance provider that you’re using your private vehicle for business purposes. This fundamentally changes the associated risks and may require commercial vehicle coverage tailored for such use.
• Commercial Coverage Options: Explore commercial vehicle insurance that covers the unique risks of e-hailing. This is especially important since liability significantly changes in a commercial context.

To simplify this process, Aon has collaborated with insurers known for their product quality, service and financial strength to offer a motor insurance solution for the e-hailing market. This coverage includes:

• Accidental damage
• Theft and hijacking
• Glass damage
• Weather-related loss, including hail
• Third-party property damage
• Passenger liability
• 24-hour emergency roadside assistance

“The goal is to ensure that the cost of using your vehicle for paying passengers or cargo doesn’t outweigh the benefits. It’s essential to speak with a broker who can provide an insurance solution with variable excesses based on the driver’s needs. Remember, the coverage is linked to your risk profile, requiring you to be a responsible driver who adheres to road rules and avoids distractions like texting while driving,” says Ann.

“Consulting your broker will help you properly scope your motor insurance coverage, enabling you to make informed decisions about the risks you face as an e-hailing driver and how to mitigate them effectively,” she concludes.

To find out more about Aon’s comprehensive car insurance for drivers working with Uber, Request a Quote Today! ⟶

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