4 Things to Consider When Becoming an Uber Driver


Uber advertises itself as a great way to make extra money by simply using your car as a taxi, but it is what Uber does not tell you that could make all of the difference. Before you decide to join the Uber app and become a driver, you need to become aware of the many legal aspects of driving for Uber that the television commercials don’t tell you. You should also be aware of how being an Uber driver might wind up becoming more inconvenient than you thought.

You Need New Insurance

If you get into an accident while driving an Uber passenger around, you are considered being involved in a business. At that point, your personal auto insurance will not cover any of the damage to your vehicle, any property damage to the other vehicle, or anybody’s injuries. You would be fully responsible for all of the expenses associated with your accident, and that could cause you to go bankrupt.

Uber does offer a $1 million liability policy that is designed to cover the medical expenses of your passenger, but that is all the insurance there will be for anyone involved in your accident. If you are going to drive for Uber, you need commercial level auto insurance.

You Need A New License

Some states do not allow people with only standard passenger vehicle driver’s licenses to drive commercial vehicles. Since your car would be considered a commercial vehicle every time you have an Uber passenger, you would need a commercial driver’s license to legally be driving. You need to check with your local DMV to find out if you need to get a commercial driver’s license to drive for Uber.

It Is Time Consuming

Forbes Magazine found out that the average Uber driver in the United States would have to pick up 60 passengers a week to be able to make $50,000 in annual income. That is 12 passengers per day for a five-day week, which averages out to around six to seven hours a day of driving. If you are looking for a part-time income, then Uber would be fine. But if you are looking to replace your full-time income, then it will take a while to build up to that kind of client base.

You Are Not An Employee

When you drive for Uber, you are an independent contractor and not an employee. That means that you are responsible for paying your own income taxes, paying for the repairs and maintenance on your vehicle, and maintaining your own health insurance. If you do the math, you might find that $50,000 per year as an Uber driver does not go nearly as far as $50,000 driving a limo for an established company.

Uber sounds like a great idea, but you have to read between the lines to see exactly what is going on. You will need a completely new type of insurance for your vehicle, possibly a second driver’s license, and take care of all of your own expenses when you drive for Uber. Many people find that it is worth it to deal with these business elements to be able to drive for Uber, while others are not happy when they find out just how much they have to do just to start making a few part-time dollars with the Uber app.