4 Things You Need to Know Before Becoming an Uber Driver

4 Things You Need to Know Before Becoming an Uber Driver

Ride sharing services like Uber make it easy to get a ride just about anywhere.
58
views

Ridesharing services like Uber make it easy to get a ride just about anywhere. But they also make it easy to earn side income (or full-time income) driving people around town.

On paper, working as an Uber driver sounds like a great gig, and it can be. However, it's important to understand a few things before you dive in and start driving.

1. You'll Probably Need Different Insurance Coverage

Uber does provide some auto insurance coverage, but only when the app is on. When the app is off, you're covered by your personal insurance policy. When the app is on, you will be covered by Uber's low-level liability insurance.

Once a trip is accepted, a higher level of coverage kicks in and stays active until the passenger exits your vehicle.

Uber's policy is designed to cover liability claims that your personal insurance won't cover. But these policies will not cover your vehicle. You'll have to rely on your own personal insurance policy for that.

The trouble with that is your personal auto insurer may decide not to cover the damage. Personal auto insurance policies usually will not cover you if you're driving for commercial purposes, which is really what Uber driving is considered.

You might consider buying supplemental commercial auto insurance, especially if you have plans to drive full-time.

2. Your Taxes Will be More Complicated

One thing many new drivers overlook when starting out with Uber is the tax implications. You're responsible for doing your own taxes. Uber does not withhold taxes – you're considered a contractor.

When tax season comes, you'll owe money (most likely). Here's the good news: You can write off certain expenses to lower your tax burden.

Some of the most common Uber tax deductions include:

  • Cell phone expenses
  • Vehicle inspections
  • Parking and toll costs
  • External GPS devices
  • Dashcams
  • Rider amenities, such as water, chargers and other things you provide for riders
  • Vehicle accessories
  • Paid apps
  • Health insurance

3. You May Earn Less than You Expected

Uber drivers often make less than advertised, and how much you earn will depend on where you are driving.

A 2015 survey of Uber drivers in 20 cities found that most earned an average of $19 an hour. But a survey from Buzzfeed found that drivers in Detroit, Denver and Houston only earned about $13.25, on average, after expenses. Drivers in Detroit only earned about $8.77 an hour.

Few drivers make more than $11 an hour.

The bottom line: You won't get rich driving for Uber. But if you need some extra cash on the side, driving for Uber is a quick way to meet your goals.

4. Reviews Can Make or Break You

Uber drivers rely on reviews from passengers. Drivers who rack up too many bad reviews can be terminated.

Expect to go out of your way to make your passengers happy. It's been reported that drivers are expected to maintain a rating of 4.6 or higher or risk being deactivated.

With that in mind, you'll need to behave professionally if passengers are unruly or angry. If you can't behave calmly in these types of situations, driving for Uber may not be a good fit for you.

Popular Right Now

15 Things That Need To Be Invented Now

The next round of needed life hacks.
51491
views

For Millennials, life is constantly being made easier. Compared to our parents' generation, almost everything about the way we run our day-to-day lives has been modified for speed, simplicity, and convenience. You want a cup of coffee? Here, have an instant cup of hot coffee at the push of a button! Missing your friend across the country? Call them with your smartphone, see them instantly! You can Google virtually any question, there is an app for every want and need; each step of the way Millennials are working to make things easier. I have a few ideas to contribute:

1. Extending USB cord: There must be USB plug that can stretch. The way a dogs leash will release more cord as it is pulled on, there needs to be a cord that can stretch as I roll over in bed without pulling the plug out of the wall. The struggle of being attached to a wall is too great.

2. Closet Organizer App: Some mornings you wake up and wonder how it was ever possible that you once found a decent looking outfit in your closet. Other days the prospect of having to dress yourself is just too much. There needs to be an app that can record what is in a closet and make an outfit, for any event, at the ready, similar to what Cher Horowitz has in Clueless.

3. Hangover Curing Drink: Stronger than Gatorade, better for you than pumping your stomach with Advil and water, and putting an end to the old "flu" excuse at work. A foolproof drink that can give everyone what they need to get up, pick their dignity off the floor, and soldier on. You all may thank me later.

4. Rent-A-Boyfriend: Have you ever had one of those weeks where you just need someone to bring you chocolate cake in bed and tell you you're beautiful? Maybe you really can't figure out how to build all the new Ikea furniture for your apartment and you are incapable of rounding up a guy friend to do it. Either way, the ability to rent a boyfriend on a needed basis would be quite handy. Think of all the stuff they could do for you, then you get to return them when you're done! It's like a dream.

5. Parking Tracker: What is it about parking garages that suddenly make everyone's memory go blank? Whatever the reason for the world's inability to keep track of their cars once stationary, it needs to be resolved. Too many minutes are lost aimlessly wandering the garage carrying heavy shopping bags. Please, someone invent a tracking app for your car, so that you can remember exactly where you parked and follow the map directly to it.

6. Forever-Hot Coffee Mug: I'm not sure what type of wizardry would be required to create a coffee mug that can abolish the awful lukewarm state that coffee turns into after such a short period of time, but someone needs to discover it. Long nights of studying and hours-long brunches of switching between the mimosa and the sweet nectar of the Gods will be forever changed by never again fearing cool coffee.

7. Teleportation Pad: The year is 2015; I was promised a flying car. In lieu of the flying car -- I am willing to accept teleportation pads. Think about travel becoming as easy as "stand here and click that button." Imagine not having to bother putting on a bra to go from your apartment to your friend's apartment for wine night! This could be revolutionary.

8. Sassy Siri: Every girl could use someone to help them come up with the perfect come back in a pinch, and who better than Siri! With her constantly involved in your conversations, it would be easy to just ask Siri for a little sass-assistance the next time your best frenemy mocks your highlights.

9. Compliment Earrings: If you have never seen Aquamarine, go rent it now. For those who recall, the star fish earrings were "notorious suck ups" to the girls who wore them. Imagine going through a tough day, when unexpectedly you are given a compliment! Talk about a great mid-day pick up.

10. Food Printer: My stalking of Pinterest food pages has progressed from a mild addiction to a full blown problem; I always find I want the things I see in the pictures immediately. I want to be able to hit print on one of the pictures and have those lemon-blueberry iced cupcakes in my kitchen right then.

11. Necklace De-Tangler: Ladies across the country lose thousands of necklaces to tangled knots. Chains break, two beautiful separates become one big mess, and before you know it your jewelry box is empty! There must be a machine where one could drop their knotted necklaces and have them come out the other side in perfect condition.

12. Hot Slippers: On a cold Monday morning when walking around the kitchen, debating which is worse, waking up or being awake, it would be nice to be comfortable. Nice pajamas are all well and good, but a fuzzy pair of slippers that can become warm? That is the dream. There is no morning too grey or hangover too intense that would not be cured with these slippers.

13. Calorie Rewind: There needs to be a way to take back that entire pepperoni pizza you ate last night. Whether you were not in the proper state of mind to be making that decision, or even if it was emotional turmoil over exams; it shouldn't count. Perhaps the next big thing in weightloss is a pill that allows you to take back a meal. A way to go back in time and undo that embarrassing trip to the doughnut shop down the road in favor of a more healthy alternative? Not a bad idea.

14. Sleepy-Time Studying: How awesome would it be if you could fall asleep with headphones in and wake up knowing an entire textbook? Humans spend an average of 26 years sleeping-- there should be a way to put that time to good use. A way to absorb the information while you sleep should be the next big invention. It would be the perfect cure to the all nighter!

15. Decision Making App: Desperately struggling to pick where to go for dinner? Unable to decide whether to go out or stay in? Unsure of whether it's a day for heels or for flats? These are the everyday questions faced by thousands of Millennials. We need to find a cure for the indecisiveness. An app that takes the guess work out of meaningless day to day questions such as, "Do I want a grande or a vent?" (Or I suppose you could just flip a coin...)

Bonus 16. Articles That Write Themselves: I wish I had a magic box I could give an idea to and it would instantly put print out the article I am trying to write.

Cover Image Credit: giphy.com

Related Content

Connect with a generation
of new voices.

We are students, thinkers, influencers, and communities sharing our ideas with the world. Join our platform to create and discover content that actually matters to you.

Learn more Start Creating

Dave Ramsey, Thank You For Sharing Your Money Tips And Knowledge With The Rest Of Us

From just starting your program and being only on baby step one I have realized many things.

80
views

Ever since starting college I have always had that thought in the back of my head about how am I going to pay off my student debt after getting out of college. This is probably a thought that every student has when they attend college and they know that after they receive their education that they are out in the real world where they have payments to make every month and probably be in debt for most of their life. But after watching your podcast and following your Instagram and seeing all these people paying off hundreds of thousands of dollars in a couple of months is very inspirational.

Paid off student debtDave Ramsey Instagram

From just starting your program and being only on baby step one I have realized many things. One, I spend money on a lot of things that I don't need but never realized until I started tracking my spending to make a budget. Two, saving a thousand dollar before actually tackling your debt is a great task as it shows that if you can save a thousand you can find a way to pay off your debt then. Though it does seem like a long process that doesn't seem possible till you finally hit the triple-digit mark. Three, you don't actually need a credit card in life because you will actually have money you can spend instead. Though I am still wondering how exactly this would work later on with wanting to buy homes and cars.

But overall thank you for sharing your story and knowledge about money and your experiences so others can learn and do better with theirs. So let's all be weird and not broke as you like to say.

Related Content

Facebook Comments