How to Apply Again for to Drive for Uber
Driving for Uber seems like a pretty easy way to make some actress money, but there are a scattering of factors that brand it more complicated than y'all might expect.
RELATED: How to See Your Uber or Lyft Rider Rating
Many Uber drivers exercise make a decent living from driving people around, whether they do it full-time or only role-time on top of their main income, merely it's of import to keep in heed that there'southward more to driving for Uber than just signing up, getting approved, hopping in your car and driving people around. Here are some things to keep in mind if you're thinking about condign an Uber commuter.
Car Insurance Tin can Be a Viscid Situation
When I looked into condign an Uber driver, auto insurance didn't even come to mind, but my brain clicked as soon every bit I saw the give-and-take "insurance" during the sign-up procedure. It turns out, most insurance companies don't offering coverage if you're using your automobile equally a taxi of sorts.
However, Uber does automatically give y'all its own automobile insurance coverage, but it's the bare minimum coverage that nearly drivers usually wouldn't want (there'southward a $one,000 deductible for collision coverage). This still may seem fine and dandy, just Uber's insurance volition only cover y'all if your personal insurance doesn't.
What's the problem hither? The problem is that when you file the incident study with Uber, they'll phone call your personal insurance company first to check if you have comprehensive and collision coverage (because Uber won't offer information technology for you if y'all personally don't have it), and when your insurance company finds out that y'all were driving for Uber at the time of your accident (or that you're driving for Uber, menstruation), a lot of experienced Uber drivers say that they'll probable drib you like a rock and cancel your unabridged policy with them for violating terms. Information technology turns out that most insurance companies don't like information technology all if you drive for Uber.
This can make information technology a lot harder to find a new insurance visitor without your premium getting hiked–getting dropped by an insurance company is a lot like your credit score taking a dive.
And then what are your options? There are a small scattering of Uber-friendly insurance companies who don't mind that you bulldoze for Uber, but they could still deny your claim. All the same, there are some insurance companies that offer specific policies that give drivers full coverage while driving for Uber, just these companies are few and far between depending on what land you live in. In Indiana, for instance, Erie Insurance and Geico both offer a policy aimed at Uber drivers, but I personally have yet to find an insurance company that can give me a quote that isn't astronomically more than expensive than what I pay now.
You lot can also buy commercial/business insurance pretty much from any insurance company, even if they aren't Uber-friendly with their personal policies, but these types of policies are, again, usually really expensive.
Uber Takes a 20% Cut
While this isn't too surprising to hear, information technology's often something that you don't remember about. Uber has to make money somehow, and it does that by taking a modest portion of your earnings.
xx% isn't a whole lot, simply information technology tin can add upwards. If you give a ride that ends with a $xv fare, Uber takes $three of that, leaving y'all with $12 in cold-difficult income. That's however a decent amount, though, but if you lot end up grossing $600 per month in fares, Uber takes a whopping $120 of that. Then don't base of operations your income solely on what the fares themselves are.
Y'all Pay All of Your Ain Taxes
On top of Uber'due south twenty% cut, y'all too take to pay 100% of the taxes owed on that income. Welcome to the life of an independent contractor!
When you're an employee at a company, they'll pay around one-half of your FICA taxes while you pay the other half (on top of your income taxation that you'll need to pay, which is likely withheld). However, if you're an independent contractor, you have to pay every penny of your FICA taxes. You'll receive a 1099 when tax season approaches, instead of a Westward-2.
You can do a scattering of things to minimize your tax payments, like making sure to write off every possible expense that you lot can. It might be best to talk with an accountant about your options.
Your Car Must Be Newer and Accept 4 Doors
If you've always wondered why you only see Uber drivers driving newer cars, that's because Uber requires drivers to do so.
At the fourth dimension of this writing, your machine must be a 2005 or newer, and it also has to have four doors, and so you're out of luck if you lot drive an older vehicle or a coupe, every bit Uber won't let y'all utilize a car like that.
Your motorcar must besides not have whatever cosmetic impairment or mechanical issues. This isn't a requirement per se, only it could touch on your driver rating if a passenger is put off past those squeaky brakes.
The Approval Procedure Can Take a While
When you go to sign up to be an Uber commuter, you'll need to go through a groundwork check and a driving history check. These things aren't instantaneous, so information technology volition have at least a few days to get approved to drive, and sometimes fifty-fifty longer.
Some Uber drivers have told me that it took months to get them approved because something came upwardly on their background check and Uber had to check up on information technology through other sources. Information technology usually turns out to be zip, simply information technology's only Uber doing their due diligence.
Your Automobile Maintenance Costs Will Get Up
You probably know that yous'll be spending more than on gas when you lot beginning driving for Uber, simply with gas prices this low, that might not exist a big concern for y'all. However, what should be a large business organisation is your automobile's maintenance costs.
These costs will become up the more you bulldoze your automobile effectually. Y'all'll demand to become oil changes more often, and you'll need to get parts replaced more than oft than normal. Plus, when you lot put more miles on your car and drive it around a lot more than you accept been, the chances of something breaking downwards increase significantly.
My advice? If yous plan on driving for Uber, find a reputable mechanic and become his friend.
In the end, information technology's not quite every bit simple to sign up for a ridesharing service like Uber or Lyft, merely it's not likewise overly complicated either, just every bit long as you can go the whole insurance mess figured out. Lyft has been known to be a bit easier to sign up for and get approved, merely they too have a higher deductible on their insurance ($two,500 instead of $1,000), and then continue that in mind.
Image Credits: Uber, Pictures of Money/Flickr, Sean McMenemy/Flickr, Chris Potter/Flickr, Ryan Ruppe/Flickr, Bob n Renee/Flickr
Source: https://www.howtogeek.com/264444/what-you-need-to-know-about-driving-for-uber/
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