It seems like everybody these days has a side hustle going or is looking to find the right one for them. A very popular one is to become an Uber driver and make money in their spare time. It seems fairly easy to get started and there are a number of people that make a full time income from it.
However, there are some costs involved when you are getting started that you need to be aware of. Since it does cost money in the beginning you may be working for a bit to get to even. To keep you from getting into something without knowing the process, we put together this article to help you understand the costs.
Increase in car insurance
When calculating your expenses, don’t factor in what you are paying for insurance now. Insurance costs are highly dependent on how you use your car. Think about when you call for a quote. They always ask you if your car is used commercially and how many miles you usually drive.
The fact that Fleet insurance experts at Fleetcover found out how much it would cost to insure the cars of Netflix and the numbers are unbelievable. That should help you understand how the price of insurance is tied to how to use the car.
Uber does cover some liability for bodily injury of passengers that pays up to $1 million, but there is supplemental insurance that you will need to buy to be able to drive passengers around. Your personal insurance is not going to be enough.
How much it costs depends on the state where you live and what your current driving record is like. It ranges from $60 to up to $150 per month in most normal cases.
Wear and tear
You’re going to have an increase in maintenance when you are driving for Uber, but at least they don’t come at the beginning. You will only be adding wear and tear on the car when you are actually working so you do have money coming in.
Expect to have to rotate your tires more frequently and to have to change them more often as well. Then there are tune ups that come more frequently and filters that need to be changed.
Depending on how much you work, you could be adding tens of thousands of miles to your car which will shorten its lifespan.
Upgrades
To make more money as a driver you have to make sure that your car is looking top notch and that you offer some services to make the ride more enjoyable. If you have a nicely detailed car and offer snacks and water as a perk, then this is going to cost you some money when starting out.
Many drivers can create a regular clientele by offering these upgrades because people appreciate these extra touches. Although it costs money to provide these things, it pays for itself quickly in that people tip better and will request you as a driver.