Thanks to a decision made by the Motor Accident ­Insurance Board to classify cars used for ridesharing in the same bracket as household cars as opposed to taxis, Uber drivers will be saving on insurance costs.

Tasmania isn’t the first state in Australia to struggle with ridesharing and Uber insurance but it is the latest. According to The Mercury, the Motor Accident Insurance Board of Tasmania have recently proposed the rejection of a “special Uber insurance premium” category.

This proposal will see cars used for ridesharing and household cars in the same premium category until 2022 (at the least.) This proposal would substantially lessen the insurance costs for ridesharing and Uber compared to that of Tasmania’s taxi services.

Currently, Taxi services in Tasmania are categorised as a class 6 and come with an annual premium upwards of $1000, however, contingent on the approval of the latest proposal put forward by the Motor Accident ­Insurance Board, ridesharing vehicles would stay in class 1, costing Uber’s roughly $300 in premiums.

Other states and territories have taken a different approach, the ACT being the first to make amendments to its insurance structure in order to make the costs more comparable with regards to the premiums that taxi and Uber drivers pay.

Additionally, Queensland has also recently responded to the continued rise in popularity of ridesharing, announcing a new annual licensing fee and enforcing a required “special insurance.”

To learn more about the policies in QLD available to ridesharing drivers contact CIB today, for an obligation free chat.