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Discussion Starter · #1 ·
Hi all,
With the new regulations for ALL Uber vehicles comes the hidden costs of insurance!
Yes you will pay around $1100 for establishing a vehicle with Omnibus to become "legal" but did you know that to be registered with Omnibus you have to be a business - with an abn?
Also, as a business your plates will change from private plates paying private vehicle registration.. to business plates paying business registration. You will be obliged to have your vehicle taken over the pits prior to being given these plates, and will incur the cost of pit inspections every 12 months thereafter..
You will also be obliged to get COMMERCIAL insurance which can be up to $2000 + per vehicle. You will need to cover the client for $20,000,000 public liability and their baggage for $100,000 liability.
If you hire a driver you will need to get workers compensation insurance in case they are in an accident.. even though they are sub-contractors you have to cover them!
You will also need to get loss of earnings insurance for yourself so that you are not entirely out of pocket should you be involved in an incident.
If you are just covered by comprehensive private insurance your insurer may default on your claim as you are taking money for rides.. which makes you a commercial vehicle using private insurance. Should you claim as a private vehicle and your insurer finds out that you were using your vehicle for payment you may be up for insurance fraud.....

Happy Ubering.....
 

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Hi all,
With the new regulations for ALL Uber vehicles comes the hidden costs of insurance!
Yes you will pay around $1100 for establishing a vehicle with Omnibus to become "legal" but did you know that to be registered with Omnibus you have to be a business - with an abn?
Also, as a business your plates will change from private plates paying private vehicle registration.. to business plates paying business registration. You will be obliged to have your vehicle taken over the pits prior to being given these plates, and will incur the cost of pit inspections every 12 months thereafter..
You will also be obliged to get COMMERCIAL insurance which can be up to $2000 + per vehicle. You will need to cover the client for $20,000,000 public liability and their baggage for $100,000 liability.
If you hire a driver you will need to get workers compensation insurance in case they are in an accident.. even though they are sub-contractors you have to cover them!
You will also need to get loss of earnings insurance for yourself so that you are not entirely out of pocket should you be involved in an incident.
If you are just covered by comprehensive private insurance your insurer may default on your claim as you are taking money for rides.. which makes you a commercial vehicle using private insurance. Should you claim as a private vehicle and your insurer finds out that you were using your vehicle for payment you may be up for insurance fraud.....

Happy Ubering.....
All uber drivers already have ABN numbers and get our cars inspected annually so no big deal.
 

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Regarding insurance ring up austral risk services ...google their no . They r in balcatta. I pay 1600 appox. P.a for caprice . If you got cheaper car you r looking at 1000-1200 appox.
I used to be insured with Austral. When my taxi was written off a few years ago by a kid running a stop sign they were very incompetent.

It took them two weeks to decide to write the car off. Massive loss of income, which they were meant to pay me for as part of the policy, but never did. Emails were ignored.

The assessor that they use takes the side of the insurance company. Policy holders don't matter to him.

I'm currently with YOUI, but will be shopping around again soon. Researching taxi/SCV insurance is a very frustrating task.
 

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Discussion Starter · #10 ·
forgot what neanderthals some people can be.. give an informed decision that doesn't agree with your view and you are lambasted. All good. Some people out there may find this information valuable to them... or not..

and UberdriverAU? past experience to my loss was my basis.. passing on the pitfalls I actually encountered.
 

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forgot what neanderthals some people can be.. give an informed decision that doesn't agree with your view and you are lambasted.
Uber sells a certain idea. Get in your car, meet new people and get paid for it. It's actually similar to the working-from-home spam emails that are always floating around.

However, there is what Uber sells… and what the reality is. And there's a big gap between those two concepts.

People learn eventually, but until then they will believe Uber's sales pitch.

And, despite everyone else expressing huge amounts of discontent, every new Uber driver chooses to ignore that until they find out for themselves. Then they become as pissed off about it all as everyone else.

Some people out there may find this information valuable to them... or not
Insurance has always been the big problem for Uber drivers, and always will be. Insurance companies generally do not want to be involved with vehicles that are being used for anything besides personal use. Commercial use involves a high risk, and gets a lot more complex.

UberdriverAU? past experience to my loss was my basis.. passing on the pitfalls I actually encountered.
In 7 years of taxi driving I've had two cars written off. I've got another car that was smashed a week ago that will possibly get written off tomorrow. I've had various minor bingles. Every single one has been the fault of the other driver. Luckily, no-one has been injured (ie more liability problems).

This stuff happens.

I carry on about it on here because I have experience with it, which has made me aware of the potential dramas.

With insurance, you're better off knowing before the situation that there's a problem with coverage. Once the situation has happened then you're locked in, and if there's a lack of coverage then it's going to get rather expensive.

However, people don't want to hear about something unless it's all good news.

Wait until July. This place is going to go nuts with people suddenly turning up and either a) asking how to get around the omnibus/SCV requirements, or b) carry on about the cost of SCV insurance.
 

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Regarding insurance ring up austral risk services ...google their no . They r in balcatta. I pay 1600 appox. P.a for caprice . If you got cheaper car you r looking at 1000-1200 appox.
I have had my peak period taxi insured with austral for the past 16yrs and have had no claims. I have a part time taxi licence and their bill this year was for $3,460.. I am getting ripped off as this is supposed to be part time taxi ins.. I will be speaking (Screaming) to them this week..
 

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forgot what neanderthals some people can be.. give an informed decision that doesn't agree with your view and you are lambasted. All good. Some people out there may find this information valuable to them... or not..

and UberdriverAU? past experience to my loss was my basis.. passing on the pitfalls I actually encountered.
Neanderthals? Hmmm....no I don't think so. Most of us here do understand the dilemma surrounding insurance so don't need you to tell us. I don't want to speculate here as to what will or will not be required come July but in due course Uber will let us know what to do. If we have to pay thousands of dollars per year for insurance then Uber won't accept that as it's unworkable so I'm sure they will figure it out.
We need disruption in the insurance industry also by the look of things to service their cutomers with more flexible insurance options.
 

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If we have to pay thousands of dollars per year for insurance then Uber won't accept that as it's unworkable so I'm sure they will figure it out.
It will be very interesting to see what Uber come up with. Maybe they'll do a deal with an insurance underwriter, but the fact is that cars will still crash and cost money to fix. And underwriters will avoid this - it just isn't worthwhile for them.

The big question is - is there anywhere else in the world where Uber cars have had to be licenced as commercial vehicles, and thus had to have commercial insurance? If so, we need to see what the results were there.

Or, will WA's regulations be the most anti-Uber in the world, and set a precedent for other Australian states and countries to follow?

We need disruption in the insurance industry also by the look of things to service their cutomers with more flexible insurance options.
The problem with commercial vehicle insurance is that there isn't enough profit.

Sure, go disrupt it all, but that's only going to work if there is profit to be pursued.

Look at Uber. It's doing things cheaper than taxis. How's that working out for Uber drivers? Crap. Taxi drivers weren't making a whole lot as it was, so there wasn't exactly a big excess of profit to be shared with new players.

When I was insured with Austral I was pissed off about the cost (I think it was something like $4,400/year for a $10,000 car). But they reckoned that the underwriter was losing money on it all. Very possible.

With taxi insurance, that got clobbered by the sudden influx of useless drivers from our favourite country. Previous taxi drivers looked after their cars, and went to great extremes to avoid crashing. The 2009-onward influx was useless, and started crashing regularly. Taxi insurance premiums went up, and the excess went from $700 to $2,000 that year.

Uber drivers are also crashing. So far most of them have been able to claim through their normal insurance company and hide what they were doing when they crashed. They won't be able to do that under the new regulations as they'll have to have expensive insurance that covers commercial use.

The same demographic of morons that got into taxis in the mid 2000s will also get into Uber. They'll also crash plenty. Sure, Uber will turf them within a few months, but these guys will still crash before then. And that's going to cost insurance underwriters money.

Disruption? The smart player was always Richard Branson. As he once said, he would go and look at a large city and see what company logos were on the biggest buildings. He would then conclude that those companies were making a bunch of money, and he would then have a go at that market (eg mobile phone coverage, credit cards, insurance).

But he chose industries where there was already enough profit to chase after.
 

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I have had my peak period taxi insured with austral for the past 16yrs and have had no claims. I have a part time taxi licence and their bill this year was for $3,460.. I am getting ripped off as this is supposed to be part time taxi ins.. I will be speaking (Screaming) to them this week..
Contact YOUI. I'm paying around $1,650 for third party only coverage on my Falcons, and $2,800 for full comprehensive on my Camry (market value, they don't to agreed value). There are a few things I don't like about YOUI's policies, but making phone calls and chasing better options is too time consuming and frustrating.
 

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Contact YOUI. I'm paying around $1,650 for third party only coverage on my Falcons, and $2,800 for full comprehensive on my Camry (market value, they don't to agreed value). There are a few things I don't like about YOUI's policies, but making phone calls and chasing better options is too time consuming and frustrating.
Thanks for the info. When my insurance is due next Feb' I will be looking for a cheaper option...
 

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Hi all,
With the new regulations for ALL Uber vehicles comes the hidden costs of insurance!
Yes you will pay around $1100 for establishing a vehicle with Omnibus to become "legal" but did you know that to be registered with Omnibus you have to be a business - with an abn?
Also, as a business your plates will change from private plates paying private vehicle registration.. to business plates paying business registration. You will be obliged to have your vehicle taken over the pits prior to being given these plates, and will incur the cost of pit inspections every 12 months thereafter..
You will also be obliged to get COMMERCIAL insurance which can be up to $2000 + per vehicle. You will need to cover the client for $20,000,000 public liability and their baggage for $100,000 liability.
If you hire a driver you will need to get workers compensation insurance in case they are in an accident.. even though they are sub-contractors you have to cover them!
You will also need to get loss of earnings insurance for yourself so that you are not entirely out of pocket should you be involved in an incident.
If you are just covered by comprehensive private insurance your insurer may default on your claim as you are taking money for rides.. which makes you a commercial vehicle using private insurance. Should you claim as a private vehicle and your insurer finds out that you were using your vehicle for payment you may be up for insurance fraud.....

Happy Ubering.....
Speculation. Get back to us when we all have solid information to work with.
 

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Speculation. Get back to us when we all have solid information to work with.
Agree. "Opinions are like ar*holes, we all have one"
My take of the DOT changes (that I am checking with HQ) is uberx falls into the omnibus category (could have changed the damn term) but that DOES NOT mean we are a SCV or an omnibus, just in that category.
It then follows that commercial insurance/the need for scv plates as opined by others is NOT required. I hope I am correct but its fun I for some to scare a few drivers in the process.
 

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forgot what neanderthals some people can be.. give an informed decision that doesn't agree with your view and you are lambasted. All good. Some people out there may find this information valuable to them... or not..

and UberdriverAU? past experience to my loss was my basis.. passing on the pitfalls I actually encountered.
You're making assertions that, to my knowledge, have no basis in fact:
You will also be obliged to get COMMERCIAL insurance which can be up to $2000 + per vehicle. You will need to cover the client for $20,000,000 public liability and their baggage for $100,000 liability.
I haven't been able to find such requirements in the documentation that has been release regarding the upcoming reforms. So provide us with a documented source for your assertion. Otherwise, like Phildo, you're just being a scaremonger.
Uber drivers are also crashing. So far most of them have been able to claim through their normal insurance company and hide what they were doing when they crashed.
Of course Uber drivers have crashes, just like every other population of drivers does. What's pertinent from an insurance point of view, is the number of incidents and the costs of handling them relative to the size of the population.
They won't be able to do that under the new regulations as they'll have to have expensive insurance that covers commercial use.
Again, what's your source for this assertion regarding insurance?

Has anyone else heard of the upcoming requirement to have all passenger transport vehicles painted hot pink? You had better start saving for the new paint job!
 

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Discussion Starter · #20 ·
can't help some people.. I am a scaremonger?? I have been in this industry for many years - before Uber - and have been hit with some pretty awful circumstances.. even covered as I am (commercially and paying through the nose) has still cost me big time when my driver trashed the vehicle. Trying to pass on my experiences is useless.. most people are like children.. it won't happen to me... until it does... then you cry.. well cry children cry
 
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