With the looming
economic uncertainties and the weakening value of our currency, most people are
finding ways to earn extra. Some people will consider using their car during
their free time to generate additional income. But before you decide to join the
current trend on ridesharing, you need to be aware of the real happenings in
this industry. The ridesharing applications claim that it is a perfect way to
earn a large income while being your own boss. However, the seasoned rideshare
drivers will give you a better perspective about this part-time job.
5 Ridesharing Tips That Rideshare Drivers Need to Understand
Ridesharing is a
perfect opportunity to earn a sizeable income; however, you need to treat this
seriously like managing your own business. You must factor in your expenses,
insurance coverage, tax deductions, and others. Here are more pieces of advice
from the experts.
1. Never Quit Your Regular Job
According to the
statistics, at least 70% of drivers are working full-time on another job and
treat ridesharing jobs as a source of supplemental revenue. A minimum of
20% of rideshare drives work 40 hours per week.
While there are reports about
the unpleasant experience of the drivers, 80% of them are still keen on
continuing their job as rideshare drivers. Based on the report of Uber, their
full-timers based in New York City are generating a total of $90,000 annually.
But according to a separate survey, only a small 2% is earning $75,000 a year or
more. 56% claimed that they are generating $10,000 or even less.
2. Sign-up on Multiple Firms
Some rideshare
driver recommends signing up to more than one company. This way, if one of the companies
is slow, there is a possibility that the other firm is busy. For instance, Uber
is more in-demand in Boston. However, not every driver qualifies to be a
legitimate driver of every company. For example, Uber requires their rideshare
drivers to have a newer vehicle model.
3. Pay Attention to Your Insurance
Coverage
Based on the study,
most rideshare drivers will not divulge their ridesharing activity to the
insurance company. It means that you are highly at risk of being denied when you
file a claim. Nowadays, your insurance company can offer add-ons or special
policies to meet your demands.
4. Be Aware of the Local Regulation
Before starting
with your ridesharing adventure, ensure that you are informed about the local
rules and regulations. Most states have laws to regulate ridesharing companies
and keep the consumers protected. There are also other places where ridesharing
is prohibited.
5. Pay Your Taxes
Those who recently
entered this industry are not aware that they have to settle their taxes. To
estimate your taxes and analyze the right deduction, you should track your
miles. It is everyone's responsibility to pay the employee and the employer
Medicare and Social Security. It is also considered an income, so you must pay
your state and federal income tax.
The economy of
sharing will stay for the next ten years. The high demand for ridesharing
opened a new market. However, if you want to survive as a ridesharing driver,
be sure to remember the tips we provided above, and you need to know how to remain
safe.
A Complete Guide to Make Your
Ridesharing Safe
Over the last few
years, ridesharing has become considerably popular in major cities around the
globe. Consumers find it as a cost-efficient and convenient transportation
option. According to the latest research, the number of rideshare drivers has
finally surpassed the number of cab drivers in New York. As its popularity
increase, some people are now concerned about its safety. They need to know that their rights as a
consumer are being protected. They also need to be aware of the legal process
if they get involved in a severe ridesharing accident.
The Study on the Safety of
Ridesharing
Based on the survey,
more Uber vehicles have been involved in car accidents than regular cabs. It
has raised some concern that most ridesharing drivers are perhaps not
sufficiently trained. In the said study that covers the statistics on the last six
months, Uber drivers have been involved in about 753 collisions that caused one
or more injuries. However, it should also be noted that Uber questioned the integrity
of that number and the methodology used to extract that information. Uber claimed that some of the accidents
should be attributed to Lyft since the driver is working for both companies.
Nonetheless, it still proves that ridesharing is riskier than cab drivers.
Things to Do To Guarantee Your Safety
Here are some things
that you need to do from taking that ride up to the time you return to
guarantee that your trip will be safe and secured.
Before Riding
Before you even
choose the driver, you need to check the review of their past customers on the driver's
profile. You also need to check if they are verified ridesharing drivers. You
may also send a random message to the driver and start a conversation. This
way, you will know if you will be comfortable hiring their service. By judging
the way they respond to your messages, you can make. You should also be
prepared. You need to print out the direction where you are heading to. Also,
leave a message to your friends and family and inform them about the identity
of your driver.
During Your Trip
When deciding on
the meeting place, choose a public place that is safe, comfortable, and
convenient. If you are going for a long haul, do not hesitate to take a
pitstop.
After the Ride
After your
experience with the ridesharing driver, always leave them feedback on their
profile. This will help the reliable drivers increase their credibility and
help the consumers choose the driver they can trust.
For the passengers
who want to guarantee their safety, you need to tell the drivers about your
luggage's average size and weight to avoid any inconveniences. You should also
use your own judgment. If you think you are not safe, do not take that ride.
You also need to call law enforcement when you feel concerned about your
security.
Things You Need to Know about the
Best Ridesharing Insurance Coverage
The growth in terms
of popularity and demand of Lyft and Uber is truly undeniable. Most car
insurance companies have already expanded their options to meet the drivers'
unique demand. Traditionally, they are associated with commercial insurance,
but now rideshare drivers can avail themselves of ridesharing insurance. In
some cases, it acts as add-on coverage for their personal insurance, but there
are also instances when it works independently. Here are some of the answers to
the most common questions about ridesharing insurance. Though it can be
a complex matter, it is also not difficult to understand.
Do You Need a Ridesharing Insurance
When Signing up on the Ridesharing Company?
Every company has
a particular requirement for its drivers. Their policies and rules can also
change depending on the state where they operate. In general, their driver
should be at least 21 years of age, with a certified license, and a functional
car that meets the state's safety and age requirement or the city. The company
will also ask you to show proof of your insurance. However, a specialized form
of insurance such as ridesharing insurance is not required by Lyft and
Uber.
Will the Company Provide You
Coverage?
In most cases, the
company will provide you coverage, but the question is- is it enough? Uber will
offer you a total of $1million if you, as their driver, met an accident while
your passenger is on board and $50,000 if you are using the Uber app while
driving to pick up passengers. This coverage is not only limited to liability
but also your injuries and car damages. However, it does not provide coverage
all the time.
Why is Ridesharing Insurance
Important?
The insurance
companies will refuse to cover your ridesharing activities in some cases. However,
some insurance company has decided to alter their policy to meet the growing
popularity of ridesharing. There are also ridesharing insurance agencies
that will drop your insurance when they find out that you are working as a rideshare
driver, so it is important to disclose all information to your insurance firm.
The coverage provided by the specialized type of insurance has vastly improved
over the last years. It will ensure that you will not lose your coverage if you
get involved in an accident. The coverage of this type of insurance can vary
depending on the company. Some companies will offer this supplemental coverage,
and others present it as a stand-alone policy. The insurance policy can also
differ; there are companies only covering Lyft and others who are restricted to
Uber.
The best coverage
that you can get from ridesharing insurance is the coverage for
the damages caused by accident. Acquiring this form of policy will not result
in an immense increase in premiums. This will only cost you an extra $6-$20 per
month, contingent upon your miles, the insurance company, and driving record.
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