AUSTRALIA: GPS Tracking Plan, Regular Uber, GoCatch Drivers 'will pay more'

Drivers for ride-booking services such as Uber and GoCatch will have their insurance premiums calculated using their GPS data, under changes announced by the NSW Government.

Minister for Innovation Victor Dominello said the "user pays" model would result in regular drivers paying higher green slip costs, depending on how often they used the apps to pick up passengers.

"If ride-share drivers are driving more, yes they will pay more," he said.

"But if you're a ride-share driver who only drives on the weekends you won't pay as much."

Ride-booking services will be required to share their drivers' data with insurers and the insurance regulator, to determine individual premiums.

That data will include the frequency, timing and routes of trips.

Drivers will pay an initial green slip cost, followed by incremental "top-up" payments, depending on how often they drive.

"This is a very fair system for ride-share operators because it means if you're driving a lot and you're making a lot of money, you're going to be paying a premium set on that," Mr Dominello said.

Ride-booking drivers currently pay class one compulsory third party (CTP) premiums, ranging from $537 to $886.

It is expected an Uber driver who works 40 hours a week will pay about three times that amount, bringing them closer to the premiums paid by taxi owners.

Uber's General Manager David Rohrsheim said the changes seemed fair.

"This is people in their own personal car, some doing a few hours here and there and others doing 20, 30, 40 hours a week and each of them are going to be paying their fair share," he said.

However he said the company was still waiting to see the Government's pricing structure for the usage-based insurance premiums.

"Only once we know that can we start the discussion about how that's going to be recovered, whether it's going to be from the drivers or from the passengers," Mr Rohrsheim said.

GoCatch CEO David Holmes said the changes would make the CTP process simpler.

Taxi owners will also have their CTP premiums determined by their level of usage.

Sydney taxi owners pay an average of $7,800 per year, but the Government said the changes would result in premium reductions of about 40 per cent.

Taxi Council CEO Roy Wakelin-King said the changes were urgently needed to create a fairer system.

"We're paying in excess of $8,500 while Uber drivers are paying less than $800," he said.

"That's just not a level playing field.

"Ride-share drivers are doing very similar work to what a taxi driver does, often at the same time in the high-risk areas.

"The risks are the same so the pricing needs to be the same," he said.