Skip the auto shop - Our mechanics make house calls

5 Essential Things to Know About Ridesharing


If you don’t know the term ridesharing, you’re sure to know the names Uber and Lyft. These companies fall under the ridesharing umbrella, which are also known as TNCs (transportation network companies). While all those ads to become a driver are enticing, there are a few essential things you need to know before you jump in and offer up your vehicle.

How It Works

Ridesharing essentially means that you are either using your vehicle to transport others to places they need to go, or you are paying a service for the ride. Many times an app is used to set up the pickup location, and the driver heads to that location, much as a taxi would do. The person hops in, is taken to their destination and pays for the transaction – usually through the app as well. If you’re the driver, your percentage of the ridesharing fee will likely be paid through the app or preset arrangements.

Know What Your Insurance Covers

While you may have insurance on your vehicle, it might not cover you when driving for ridesharing. In fact, most insurance policies have a clause that specifically states that use of the vehicle in a for-hire manner eliminates the coverage. Take the time to read your existing policy or speak with your agent – before you get in an accident. Failing to have coverage could result in your paying for everything out of pocket, especially if you’re the one that was at-fault.

Ridesharing Company Insurance Might Not Be Enough

Most ridesharing companies say that they provide insurance to their drivers. However, that insurance may not be enough coverage, and you could end up in disputes depending on when the accident occurs – especially if you don’t have a passenger in the vehicle when an accident occurs. Make sure you understand the requirements and limits before you put too much trust in the agency’s policies.

Track Everything

While those high hourly rates for ridesharing sound promising, you likely won’t come close to what the companies advertise. If you want to make sure you do, you’ll want to track your mileage, fuel costs and maintenance costs on your vehicle that occur due to your ridesharing duties. They can all be claimed on your taxes, which will help offset them since they are considered business costs.

Consider Part-Time

While you might be tempted to jump right in with ridesharing, it’s best to start out part time and keep your full time position. Some areas simply don’t have enough people using them to provide a decent full-time income, especially when you start paying for gas, insurance and the like.

The statements expressed above are only for informational purposes and should be independently verified. Please see our terms of service for more details

Skip the repair shop, our top-rated mechanics come to you.

At your home or office

Choose from 600+ repair, maintenance & diagnostic services. Our top-rated mechanics bring all parts & tools to your location.

Fair & transparent pricing

See labor & parts costs upfront, so you can book with confidence.

12-month, 12,000-mile warranty

Our services are backed by a 12-month, 12,000-mile warranty for your peace of mind.

Get A Quote

Ask a Mechanic
(100% Free)

Have a car question? Get free advice from our top-rated mechanics.

Ask A Mechanic
Over 10,000 questions answered!

Need Help With Your Car?

Our certified mobile mechanics make house calls in over 2,000 U.S. cities. Fast, free online quotes for your car repair.


Post a question and get free advice from our certified mechanics.


More related articles

Insurance Requirements for Car Registration in Kentucky
The Kentucky Transportation Cabinet requires that all drivers in Kentucky carry liability automotive insurance, or “financial responsibility” in order to operate a vehicle legally and maintain vehicle...
How to Transfer a Car Title in Idaho
In order to prove ownership of a car, you must have the title. However, when a car is sold, given away or inherited, the title needs...
Veteran and Military Driver Laws and Benefits in Idaho
The state of Idaho offers a number of benefits and perks for those Americans who have either served in an Armed Forces branch in the...

Related questions

Q: What does the check fuel cap alert mean?

When the check fuel cap alert shows up on the information display, it means that the fuel cap has not been properly tightened. When the cap is secured correctly, the alert will disappear.

Q: While pressing on brake pedal, car accelerated

Hi there, gladly you are okay after your accident. Brake failure can be a result of several different things. This can range from a failing brake booster, to air in the brake lines, to worn brake pads. Based upon the...

Q: How to keep my car run well for years?

Hi, thanks for writing in. I would suggest following the preventative maintenance schedule located in your owner's manual. Vehicle manufactures provide these for owners to follow to ensure the longevity of each vehicle. Some basic preventative items include, but are...