A Complete Guide on Ridesharing

 

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


Uber

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

 Ridesharing applications

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

 Ridesharing Insurance

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

 Ridesharing Insurance

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

 Ridesharing Insurance

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?

 Ridesharing applications

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?

 Lyft

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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