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How Uber and Lyft Drivers Profit from Livery Insurance

How Uber and Lyft Drivers Profit from Livery Insurance

For some full time drivers, it may make sense to get your own commercial livery insurance. I have written before that livery insurance is not a good option for most drivers who are mainly part time, but after all of these price cuts and increases to the safe rides fee, it may make sense for some full time drivers to take a look at commercial livery insurance. If you are interested in doing this, make sure to get livery insurance. Livery insurance is a subset of commercial insurance in that they cover you for transporting paying passengers. The basic commercial insurance will not cover you from transporting paying passengers so make sure to talk to your local insurance agent about transporting paying passengers or that you need taxi insurance or car service insurance.

Below are the main reasons for full time drivers to consider getting livery insurance.

You get to keep the Safe Rides Fee

Personal clients outside of Uber or Lyft

Grey areas with Personal Car insurance


If you are driving full time and are able to sign up for UberBlack in your area, definitely consider them if you are serious about making money on Uber. However, I will caution everyone who goes into UberBlack to get the cheapest car you can find that meets the requirement, even for a year. Never get anything brand new for Uber, but their requirements are changing so they may only accept cars 2013 or newer (currently 2010 or newer, depending on the market), which makes it harder to save much money over buying new. Before anyone sign up for this, consider the possibility that Uber could change the rules on UberBlack and that you no longer can drive for Uber. What will you do then? Do you have a backup plan? What is your exit strategy?

Airport Pickups

For those in Boston, it makes sense to have commercial insurance because this allows you to be able to pick up from the airport, and Uber levies a $8.75 charge for picking up at the airport. Cars require commercial insurance to be able to pick up at Boston Logan airport. There is a $5 toll for commercial vehicles but the toll gets charged directly to the customer in addition to the airport fee, so essentially you are getting $8.75 for having commercial insurance. With about 100 airport pickups a month would be able to pay off commercial insurance, in the range of $600 a month, depending on where you garage your vehicle. There aren’t many airports in the US that are this restrictive and also offer such a lucrative fee for picking up at the airport, but it can be a total game changer if your airport is set up in such a way.

In my next post, I will be going over some ways to save in Livery Insurance so take a look if you are interested in pursuing livery insurance to be more independent from Uber.

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