Rent a Car from Uber Carshare (Previously Car Next Door) - You Are Not Insured

Uber Carshare does not provide insurance when you rent a car. They cover you with a Mutual Member Fund - https://www.mobilitymutual.com.au/

The PDS of this fund is super clear on this "Trip Cover is not an insurance product". Uber have done this so that the Insurance Act does not apply as the The Insurance Act has a lot of protections for consumers.

See Section 2 of

https://static1.squarespace.com/static/616770fbee55e13f68b31…

The PDS gives you the right to ask for reimbursement of the damages that you have to pay to the owner but the Mutual has the absolute right to refuse for any reason at all.


At its discretion, the Board may make a decision not to pay any claims resulting from an Event, or to make a
reduced payment, in the interests of all Members. For instance, the Board may exercise its discretion to pay
claims on a proportional basis depending on the total amount of Contributions collected from its Members
and the number and size of claims, as a way to ensure that all Members with claims caused by a particular
Event are treated fairly. The aim of the Mutual is to manage the limits of protection and it has purchased
(re)insurance in order to fully fund claims.

where the Vehicle has manual transmission and is driven by a person who has less than two years'
experience of regularly driving cars with manual transmission


Careful renting without additional insurance !

Related Stores

Uber Carshare (Formerly Car Next Door)
Uber Carshare (Formerly Car Next Door)

Comments

  • +10

    Why am I not surprised at yet another uber shenanigan haha

  • So who is this bad for? The owner or the renter?

    • +4

      Probably both…

    • +1

      The owner or the renter?

      If costs are not coming from the 'insurer', then it's coming from one the above!

      But then it's always the endcustomer (renter) that loses out in the end.

      • agreed. Although at first glance it seems likely to affect the owner more. Presumably the renter is at risk because the owner may sue them for damages if the "mutual fund" doesn't pay up. Or, does the mutual fund try and recover costs from the renter in the case of an accident? Pretty unclear how this works, and I would be worried relying on it

        • +1

          I have no idea with this "non-insurance" policy but there's usually sufficient avenues to chase recovery through different parties and it ultimately stops at the person responsible for whatever incident (or whoever's indemnified them).

    • +1

      Don't think this matters much to end-user. You're only liable for the agreed excess ($2,000 normally as included or $500 premium if you pay daily extra). Not interested in the rest.

      The get out of jail clause above is pretty standard for any insurer. They can reject your claim for any reason they deem fit.

      • There's actually a maximum amount you can claim per cover , if you are getting a new car this might not cover it

  • +3

    Uber is by definition dodgy…

    Why is this a surprise?

    • +3

      False. I believe the actual definition is: denoting an outstanding or supreme example of a particular kind of person or thing.

  • FYI they moved to Mobility Mutual since 2021 (before Uber acquisition), so it was not Uber's decision.

    Haven't made a claim yet myself after the change but the process is quite the same. They engage Dinggo to get the cheapest quote and the person responsible then pay the excess fee

  • Sometimes I wonder if it's cheaper to just settle it outside insurance with the owner directly.

    Like, if I borrow an old ute worth $5000 and ding it, then it's probably worth my time trying to flick the owner a couple of hundred in cash as opposed to paying $2000 in excess.

    • +1

      For a beater I'd doubt an insurer would even repair it despite paying the excess. Likely they'll just settle with cash for some ridiculous amount below market.

  • +1

    My car was on CND.
    The bumper at the back got scratched (from car colour to black mark) while the car was rented.

    I settled with the renter for $300 since there was dings on the other side of the bumper.

    I didnt repair it. Pocketed $300

  • I guess it is a lesson to everyone that this platform is now a den of scammers.
    Rent your car out, claim some damage and get a cash payout, threatening the renter with 2k excess if they don't agree. (or $500 if they chose to reduce excess).

  • I was thinking about putting my second car on this platform as I dont use it everyday but is it worthwhile? I am confused with what is being said about the insurance. Are we saying the driver is not insured which affects the car owner or the person renting the car?

  • Why are idio-people still having any dealings with companies like uber?
    If you stick your face into a fire, it will get burned. If you use those types of companies, you will get 'burned'.

    • Whats the alternative to rent someone elses car?

      • there have been a few new players in the market. Check Drivemate or Turo

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