Can I Ever Drive for Uber Again After Being Rejected for Having a Bad Driving Record

Driving for Uber seems like a pretty easy way to brand some extra coin, only at that place are a handful of factors that make it more complicated than you might await.

RELATED: How to Run across Your Uber or Lyft Rider Rating

Many Uber drivers do make a decent living from driving people around, whether they do it total-time or simply part-fourth dimension on top of their principal income, but information technology'south important to keep in listen that at that place's more to driving for Uber than just signing up, getting approved, hopping in your car and driving people around. Hither are some things to keep in mind if yous're thinking about becoming an Uber driver.

Automobile Insurance Tin Exist a Mucilaginous State of affairs

When I looked into becoming an Uber driver, auto insurance didn't even come to mind, but my brain clicked as soon equally I saw the word "insurance" during the sign-upward process. Information technology turns out, most insurance companies don't offer coverage if you're using your motorcar as a taxi of sorts.

All the same, Uber does automatically give y'all its own auto insurance coverage, but information technology's the blank minimum coverage that most drivers usually wouldn't want (there's a $1,000 deductible for collision coverage). This still may seem fine and dandy, but Uber's insurance will just encompass you lot if your personal insurance doesn't.

What's the problem here? The trouble is that when you file the incident report with Uber, they'll call your personal insurance visitor first to check if you take comprehensive and collision coverage (considering Uber won't offer information technology for you if y'all personally don't take information technology), and when your insurance company finds out that you were driving for Uber at the time of your blow (or that you're driving for Uber, period), a lot of experienced Uber drivers say that they'll probable drop you like a rock and cancel your entire policy with them for violating terms. It turns out that well-nigh insurance companies don't like it all if you bulldoze for Uber.

This tin can get in a lot harder to detect a new insurance company without your premium getting hiked–getting dropped by an insurance company is a lot like your credit score taking a swoop.

And so what are your options? At that place are a small handful of Uber-friendly insurance companies who don't listen that y'all drive for Uber, but they could notwithstanding deny your claim. Withal, there are some insurance companies that offer specific policies that give drivers full coverage while driving for Uber, simply these companies are few and far between depending on what state you live in. In Indiana, for example, Erie Insurance and Geico both offer a policy aimed at Uber drivers, but I personally take however to notice an insurance company that can give me a quote that isn't astronomically more expensive than what I pay now.

Yous tin also purchase commercial/business organisation insurance pretty much from any insurance company, even if they aren't Uber-friendly with their personal policies, only these types of policies are, again, usually really expensive.

Uber Takes a twenty% Cut

While this isn't likewise surprising to hear, it's oft something that y'all don't think about. Uber has to brand money somehow, and information technology does that by taking a small portion of your earnings.

20% isn't a whole lot, but it can add up. If you give a ride that ends with a $15 fare, Uber takes $iii of that, leaving you with $12 in common cold-hard income. That's nevertheless a decent corporeality, though, just if y'all end up grossing $600 per month in fares, Uber takes a whopping $120 of that. And then don't base your income solely on what the fares themselves are.

Yous Pay All of Your Own Taxes

On top of Uber's 20% cut, yous also have to pay 100% of the taxes owed on that income. Welcome to the life of an contained contractor!

When you lot're an employee at a visitor, they'll pay around half of your FICA taxes while you pay the other half (on elevation of your income revenue enhancement that you'll need to pay, which is probable withheld). Nonetheless, if you lot're an independent contractor, y'all have to pay every penny of your FICA taxes. You'll receive a 1099 when taxation flavour approaches, instead of a W-2.

You can do a handful of things to minimize your tax payments, like making sure to write off every possible expense that you can. Information technology might exist best to talk with an accountant about your options.

Your Motorcar Must Be Newer and Accept Four Doors

If you've always wondered why you only see Uber drivers driving newer cars, that'due south because Uber requires drivers to do then.

At the fourth dimension of this writing, your car must exist a 2005 or newer, and information technology besides has to accept four doors, so y'all're out of luck if yous drive an older vehicle or a coupe, as Uber won't allow you use a car similar that.

Your motorcar must also not have any cosmetic impairment or mechanical issues. This isn't a requirement per se, but it could impact your commuter rating if a passenger is put off by those squeaky brakes.

The Approval Process Tin can Accept a While

When you go to sign up to be an Uber driver, you lot'll demand to go through a background check and a driving history check. These things aren't instantaneous, and then information technology will take at least a few days to get approved to drive, and sometimes even longer.

Some Uber drivers take told me that it took months to get them approved considering something came up on their groundwork check and Uber had to cheque up on it through other sources. It usually turns out to be nothing, but information technology's just Uber doing their due diligence.

Your Motorcar Maintenance Costs Will Go Up

You lot probably know that you'll be spending more on gas when you start driving for Uber, but with gas prices this low, that might non be a big concern for you. Withal, what should be a big concern is your car'due south maintenance costs.

These costs will go up the more yous bulldoze your car effectually. Yous'll need to become oil changes more often, and you'll need to get parts replaced more than often than normal. Plus, when you put more miles on your car and drive it around a lot more than you accept been, the chances of something breaking down increase significantly.

My advice? If yous program on driving for Uber, discover a reputable mechanic and become his friend.

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In the end, it's not quite as unproblematic to sign upwards for a ridesharing service like Uber or Lyft, but it's non too overly complicated either, just as long as y'all can get the whole insurance mess figured out. Lyft has been known to be a bit easier to sign upwardly for and become canonical, but they also have a college deductible on their insurance ($2,500 instead of $1,000), then keep that in mind.

Image Credits: Uber, Pictures of Money/Flickr, Sean McMenemy/Flickr, Chris Potter/Flickr, Ryan Ruppe/Flickr, Bob n Renee/Flickr

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Source: https://www.howtogeek.com/264444/what-you-need-to-know-about-driving-for-uber/