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In today’s high-tech world, there are arguably more side hustle opportunities than there have ever been before. If you have some spare time and you like to drive, Lyft might be an appealing option for you to earn some extra money.
Driving for companies like Lyft can be a good source of extra income. You can make instant cash whenever your schedule allows. But if you plan to be a Lyft driver, you’ll need ample auto insurance, and you’ll have to understand how this service works. That’s why here you’ll find the lowdown on Lyft’s requirement’s for insurance, car, and driver requirements.
Lyft Insurance Requirements
When you’re a Lyft driver, you must carry your state’s minimum insurance policy. On top of that, Lyft provides an additional insurance policy for free. Lyft offers $1 million in liability protection, which protects the company if a passenger is in the vehicle at the time of an incident.
Lyft provides four coverages – contingent liability, primary automobile liability, contingent comprehensive and collision, and uninsured/underinsured motorist. Contingent liability coverage applies to accidents that happen when the app is active in driver mode, but before the ride request. That policy comes with a $100,000 limit for every accident.
Lyft Car Requirements
Any car used to provide Lyft rides need to have four outside door handles and at least five seat belts. The company requires a 19-point inspection of your vehicle to make sure it’s up to snuff. They’ll be checking for things like functional windows, windshield wipers, and healthy tire treads.
Every vehicle driven for Lyft must be registered in the driver’s state. The age of the vehicles driven vary from state to state, but usually they must be at least a 2003 model or newer.
Lyft Driver Requirements
Lyft won’t allow just anyone to drive for them, so the drivers must pass certain standards. Drivers must be at least 21 years old, and they have to own an Android or iPhone phone. Before a driver is approved, their record with the Department of Motor Vehicles will be examined. Of course, any Lyft driver should have a clean driving record. If you have a lot of tickets or traffic violations, you could be denied.
In addition, drivers undergo a national and county background check to ensure passengers will be safe. Lyft requires a Social Security number and an in-state driver’s license for a background check.
Lyft as an Ideal Side Hustle
Lyft, a competitor of Uber, is a transportation service that offers ride to customers. It’s based out of San Francisco and was launched in 2012. Now it operates in 300 U.S. cities, giving some 18.7 million rides to customers every month.
If you live in a metropolitan area, you’ll likely be able to drive for Lyft as most major cities are in their service area. But if you live in a small town or a rural area, this revenue stream will likely be out of your reach.
How much drivers can earn depends upon how many hours they can spare during the week. Lyft doesn’t ask for a certain number of hours – there’s no set requirement about how much time you have to dedicate to it.
Lyft drivers earn money for every minute they are behind the wheel, but there are other ways to earn. According to Lyft, its drivers have received more than $200 million in tips collectively. They can even earn money without logging a single mile – they can get paid for referring others to drive for Lyft.
The Bottom Line
Lyft can be a great way to earn a substantial side income. Some drivers make hundreds of dollars just driving on the weekends. If you’re interested in joining the ranks of drivers, you can sign up online. If you qualify, it won’t be long before you’re using your spare time to start a potentially important revenue stream.
With Lyft’s insurance, you can rest assured your passengers will be financially covered in the event of a costly accident.
Author: Shannon Serpette