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Taxi drivers in Tasmania will have to fork out over three times more for compulsory third-party-insurance than Uber drivers, if recommendations by the state's economic regulator are taken on.
This year, the Tasmanian Economic Regulator has created a new class for ridesharing service vehicles, such as those driven by Uber drivers.
The American ride-sharing company launched in Hobart last year and has about 150 drivers on its books.
The regulator has recommended Uber drivers pay the same $314 premium as private cars — a figure a spokesman from Uber said was sensible.
"The premium reflects that the primary use of ride-share vehicles is for private, rather than commercial, purposes," the spokesman said.
Taxis will pay $1,028 under the recommendations - and the industry body is unimpressed.
"We believe they are a taxi and they operate like a taxi," Tasmanian Taxi Council secretary Tony Dilger said.
"Some of them work 40 to 60 hours a week, so yes, we believe it is unfair."
There are 609 taxis in Tasmania, including about 400 in Hobart.
The Tasmanian Economic Regulator Joe Dimasi said the insurance premium costs are based on the state's motor vehicle accident data.
Mr Dimasi said if the data showed ride-sharing cars posed the same risk as taxis, the premium would go up.
"If that's what it shows, that they are posing the same risk as taxis, then that is what will happen," he said.
The regulator's pricing recommendations cover a four-year period, from December 2017.
The State Government will make the final call on any premium changes.
Insurance premiums for most types of vehicles remain unchanged, with the biggest price hike of $15 affecting owners of off-road recreational vehicles.
Topics: insurance, transport, hobart-7000
First posted