This content is for informational purposes only and is not intended to provide financial advice.
The inflation we’ve seen over the past few months has encouraged many people to consider taking a detour to deal with growing expenses.
Uber, DoorDash, Lyft, and other gig companies are well-known options for making extra money, but you might be wondering if these companies provide insurance for their drivers like Uber does for their drivers- food delivery people with Uber Eats Insurance.
Let’s take a look at some side hustle options for 2022, how much you can earn, and other considerations with these jobs.
How profitable is delivery?
With most delivery driver jobs, it’s hard to give an exact figure you would earn. The time you spend driving or delivering is primarily what dictates your income.
The population of the area you drive in also impacts your salary. However, you should keep in mind that you might earn less than advertised after expenses.
Here are some average hourly earnings on various ridesharing and delivery apps:
- Uber: $15 to $30 per hour
- Lyft: $20 to $28 per hour
- DoorDash: $15 to $25 per hour
- GrubHub: $12 to $15 per hour
- GoPuff: $10 to $15 per hour
- Instacart: $15 to $20 per hour
Tips are also an important consideration when determining hourly pay, so the numbers you see above can be even higher when tips are added. Most of these gigs allow you to keep 100% of your tips, but consider them before choosing which ones to work for.
With the growing popularity of food delivery due to the pandemic, use your vehicle for deliveries is still a viable way to make money on the side.
Driving expenses to keep in mind
While the hustle and bustle on the side of driving a gig might seem like a quick buck, to truly turn a profit you need to be prepared for all the expenses that will come from your earnings.
Your biggest expenses will include:
- Car or rental payments
- Taxes (which includes a self-employment tax with the IRS)
- Tolls, license, permit (passengers will pay extra for toll fees)
- Vehicle maintenance
Just as your income may vary, your expenses will likely vary as well. The type of vehicle you drive, your driving record, your age, and the location of your services can all affect the type of expenses you will have. Keeping your vehicle clean with frequent maintenance and washing can also be costly.
What are the conditions for registering?
Naturally, there are certain requirements you need to meet before signing up for rideshare or delivery gigs. Most of the requirements are similar between different applications and companies. In most cases, the difference is in the requirements of the vehicle.
For example, Uber requires your vehicle to have four doors. However, their food delivery service (UberEats) is more forgiving and allows two- or four-door vehicles.
The model of your vehicle is also a factor. UberEats requires your vehicle to be at least a 1998 or newer model, but this may vary by city.
Some food delivery companies allow their drivers to use motorcycles, bicycles or scooters. This mainly depends on the service you provide and the size of your delivery location (larger cities would allow this, for example).
General requirements for most applications are:
- Ability to lift 40-50 pounds (for food delivery)
- Clean background check and driving record
- Valid car insurance
- Valid driver’s license.
Age requirements for concert driving may vary. In general, you must be 18 or older. However, some companies may have 21 as the minimum age requirement. Let’s take a look at Uber, for example.
With Uber, you can meet the minimum driving age in your state. However, if you are under 23, you will need to have longer driving experience (three years of driving license as opposed to the normal one year requirement).
Should I take out carpooling insurance?
Your personal auto insurance policy is not adequate coverage if you become a gig driver. If an incident occurs while you are clocking in, your insurance company will not cover those claims. Uber and Lyft offer a basic level of liability coverage, but relying on this coverage alone may not be the best option as these policies have high deductibles.
This is where carpooling insurance comes in. Rideshare insurance is a type of commercial auto insurance policy specifically for ridesharing or food delivery services. It is distinct from non-owner car insurancewhich would be more for people who regularly drive other people’s cars, rather than being driven by them.
Typically, commercial auto insurance is for larger businesses. This leads to fonts being designed for many vehicles or vehicles that are exclusively used for business purposes.
Rideshare Insurance Details to Keep in Mind
It normally doesn’t make sense for someone using Uber as a side job to have a standard commercial policy, so most insurers will sell ride-sharing coverage as an additional policy. This allows commercial coverage for drivers who are not running a large-scale business.
GEICO, Progressive, USAA, Allstate, State Farm, and Farmers are all insurers that can provide you with rideshare coverage for a low monthly cost. If your current insurer does not offer carpooling insurance, you will need to change insurers since you cannot purchase carpooling coverage.
How food delivery differs from ridesharing
While rideshare insurance coverage is great for gigs where you’re driving passengers, you may not be covered when delivering packages or food.
The growing food delivery industry is relatively new to most insurers. So your best bet is to speak directly to an insurance agent. Since food delivery is becoming so popular, it’s likely that delivery-friendly policies will be added in the future.
Specifics of liability insurance provided by carpooling companies
A variety of food delivery agencies have their own policies to handle the insurance issue. UberEats is considered one of the best insurance policies for its drivers.
They offer up to $1 million in liability coverage during the entire delivery process, as well as collision and comprehensive coverage. However, these policies include a $1,000 deductible.
DoorDash has a million dollar policy that covers bodily injury and property damage. These policies only apply to “active deliveries”, which means you must be in possession of the food during the accident to qualify for coverage.
Postmates is another with $1 million per accident liability coverage to cover property damage and injury to others. The postmate policy is specifically for the scenario where your personal policy limits have been exhausted.
In contrast, companies like Instacart and GrubHub do not provide specific coverage for their drivers.
Is conducting a gig always worth it?
Ultimately, only you can determine if it’s worth it for you based on your schedule, lifestyle, and personality. If you don’t mind working with people and you have free time to taxi people or deliver their food, then this side hustle might work well for you and help you out. to save money.
Each company has its advantages and disadvantages, so we recommend that you do your own research to determine which one best suits your needs.
Luke Williams writes and researches for the car insurance comparison site, AutoInsurance.org. His passions include insurance best practices and ways to make extra money with ride-sharing and food delivery services.
This content is brought to you by Anne Davis.