E-hailing Drivers: Business Insurance vs Car Insurance

If your car is your business, you need the right insurance and long story short. If you use your car to earn a living, then that car needs to be insured for business usage. So Business Insurance. 

Since Uber hit SA in 2013, it has dramatically changed how South Africans travel, creating a lot of jobs for drivers. The roads might be a little more congested but they’re safer, and you don’t have to look for parking (especially in Cape Town), which in itself is worth the price of the fare. 

Not really sure about why you should opt for Business Car Insurance rather than Car Insurance, let’s take a closer look at the difference between the two.

What is Business Insurance for e-hailing drivers?

The moment a privately owned vehicle starts carrying paying passengers for money, it stops being just transport and becomes an income-generating asset. For this reason, regular Car Insurance won’t always cover you fully. If you’re an Uber (Bolt or InDrive) driver, your car is your office, your livelihood and your business. Besides having to transport overly-festive passengers, navigating your way to obscure addresses and sitting in traffic, it comes with another challenge: Insurance. And when things go wrong not having the right insurance can be a real problem especially when it’s your own car on the line. What we mean by this is, Uber or Bolt don’t own your car, you do. So, where a business would usually be held liable for insuring their vehicles, Uber and Bolt wouldn’t be. However, in the case of Wanatu, for example, a new e-hailing company in South Africa, the cars are owned by Wanatu and the drivers are employed, in that scenario, Wanatu would cover the Insurance for their fleet and drivers. Uber, Bolt and InDrive work differently, where drivers contract their services to the platforms, with the option to sign up for Insurance through their rideshare apps* or manage their cover in a personal capacity.

Rideshare apps like Uber do offer Commercial Insurance products, however there are specific T&Cs that are quite country specific. As an example, they only cover you when you are actively working. 

Here are the basic differences between personal and Business Car Insurance:

Business Car Insurance and Car Insurance. What’s the difference?

Aon states that personal motor insurance typically does not cover claims arising from commercial activities, and Uber’s South African vehicle requirements say the uploaded policy must clearly state business or commercial use. If something goes wrong and you need to be covered, insurers will determine whether or not your car was used for business or private use, which affects the settlement in the event of an insured incident.

What to consider While E-hailing has made travel easier and safer for many, it’s also introduced new risks, and that’s where Business and Car Insurance overlap. So here’s the rundown of what you need to consider:

Business Insurance

• You’re not just a driver, you’re an entrepreneur. A business owner with a mobile office that has many different types of clients across multiple locations. And like every business this comes with its own risks. Vehicle damage, theft, liability for passenger injuries and even protest action can be covered by basic Business Insurance.

Business Car Insurance

• As an E-hailing driver you’ll be using your car as a source of income, which changes the type of insurance you need to cover you. E-hailing is a regulated passenger transport service, with documents, licenses and compliance obligations. Over and above that, there’s Business Car Insurance that ensures your vehicle is covered for the extra wear-and-tear and the business-related risks that come with the job. It covers repairs or replacement in case of accidents, theft, or even natural disasters.

Passenger Liability Cover

• It's crucial to have adequate insurance that covers injuries or fatalities to passengers involved in an accident while in your e-hailing vehicle. Although some e-hailing companies and platforms provide this coverage, it should not be your only safeguard. Ensure your policy provides comprehensive protection for any worst-case scenario. This type of coverage often also extends to include emotional trauma experienced by passengers who witness an accident.

How much does e-Hailing Business Car Insurance cost?

As with any insurance, there are a vast number of variables that can affect your quote and cover. Hippo, takes the legwork and the guesswork out of the process and you can compare Commercial Property Insurance quotes quicker than getting a pickup 5kms away and find the one that suits your e-hailing business best.

With business insurance for e-hailing drivers, excess is the amount you’ll need to pay yourself when you submit a valid claim, before the insurer pays the balance. On Hippo, this can vary depending on the insurer partner, the type of policy you choose, your risk profile, and even the details of the claim itself. Some partners offer flexible excess options, which usually means a higher excess can lower your monthly premium, while a lower excess can push it up. So the right one really depends on the policy specifics and what you’d be comfortable paying if you need to claim.

Additional cover and benefits to consider, just in case.

For a little extra a few add-ons can make all the difference when taking on the roads of Mzansi.

• Car Hire Benefit (Loss of Use): If your car is out of action due to an accident, this add-on will get you a rental, so you can keep on working.

• Roadside Assistance: No one wants to be stuck on the side of the road waiting for help. Less time on the road means less stress and less money, so this makes total sense to bolster your cover.

• Emergency Medical Assistance: Having this ensures that medical assistance is just a phone call away in case of any accidents.

• Business Concierge: This is like having a personal assistant for your vehicle, sorting out everything from tyres to batteries, often at discounted prices.

• Business All Risk Insurance: Don't forget the smaller things that make your business run, like your phone. This cover protects your little gadgets that are crucial to your operations.

Get going with Business Car Insurance quotes from Hippo

If you’re considering becoming an e-hailing driver or are one already you now know that you require specialised insurance for your business, and Hippo is here to help. 

• Get quotes side-by-side from top insurance companies vetted by our experts.

• It takes minutes.

• It’s absolutely free with no mark-ups.

• Hippo is an authorised financial service provider (FSP 16357).

NOTE: This article is for informational purposes only and should not be construed as financial, legal, or medical advice. Coverage terms, pricing, and availability may vary. Always review policy documents carefully and confirm current pricing with suppliers before making any decisions.