RACQ Insurance is ceasing to offer cover for rideshare vehicles due to a higher rate of claims related to the transport service. 

The insurer says that “after careful consideration” it decided to stop offering cover for ridesharing and related food delivery service vehicles from November 3 this year. 

“We will still provide cover for policyholders that are an employee of a company they deliver food for and those delivering food for a registered charity,” a statement from the insurer says. 

“The decision was not taken lightly, but our data highlights a higher rate of claims related to rideshare vehicles.” 

Market research firm IBISWorld notes that demand for ridesharing service providers in Australia's major cities has grown rapidly, and has rebounded following declines during the pandemic 

Uber launched in Australia in 2012, with the ACT becoming the first jurisdiction to legalise and regulate the service in 2015.