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Uber And Lyft Requirements in Massachusetts: Drivers, Vehicles, And Insurance
Want to become a rideshare driver, but are not sure which company would suit you best? Read all Uber and Lyft requirements for Massachusetts
The rideshare industry is certainly disrupting traditional forms of transportation as public transit services and taxis continue to feel the heat from popular unicorns, Uber and Lyft.
However, it is not just public transit authorities and taxi companies paying close attention to this relatively new travel trend.
In the United States alone there are more than 150,000 rideshare drivers and 1 million rides completed daily between Uber and Lyft.
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Numbers like this prove that the general public has picked up on this this alternative travel option as well and are running with it--or should I say driving with it?
Is it better to drive for Uber or Lyft?
Are you looking to earn some extra cash by becoming a rideshare driver, but are not sure which company would suit you best?
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First, you'll want to compare the individual driver, vehicle, and insurance requirements set by the two companies.
Specific requirements, such as the acceptable vehicle model year, may vary slightly by state and city. However, most people are eligible to drive for both Uber and Lyft.
During my research for this article, I found that Lyft's website is much more transparent with their potential drivers.
Lyft provides firsthand, detailed information for every step of their application process including local regulations and which documents must be in your name. I had all my questions answered before I even clicked "Sign Up."
Their required documents, even the tedious local level ones, can be signed and delivered right from their website.
Uber's website, on the other hand, was a bit more cryptic. They do not directly plot the steps of their application or vehicle inspection process.
Luckily, the internet is full of past and present Uber drivers who are happy to give up this information for those going through the driver sign-up process.
How much money does an Uber or Lyft driver earn?
A straightforward answer to this question is hard to find. There are many variables when it comes to earnings for rideshare drivers, such as location and external expenses.
The national average earning per trip for Uber or Lyft is $12.95. Specifically in Boston, UberX drivers earn an average of $12.80 per trip while Lyft drivers earn $12.76.
Uber and Lyft's PR departments rarely publish any company data -- especially if it could dissuade drivers from signing up or continuing to work for their platform.
This lack of transparency does not provide drivers with a standard in which to compare their current earnings over time. This becomes more of a concern when Uber or Lyft decides to lower their per mile rates in an effort to increase passenger demand.
Even with this assorted data, concrete conclusions cannot be drawn about which city or which rideshare company is best.
Rate and earning variations are not the same nationwide. Each city has its own surge pricing, hourly guarantees, company incentives, natural factors like severe weather, as well as differences in geography and population density.
UberX and Lyft drivers make relatively the same in cities across the United States. However, New York City is an extreme outlier possibly due to larger population density.
Other factors that affect a rideshare driver's true income value include external expenses not covered by Uber or Lyft. This includes things like gas, insurance, vehicle maintenance and registration.
Drivers should make sure their rideshare operating costs don't exceed their annual earnings.
Car insurance for Uber, Lyft, and other rideshare companies
Insurance company coverage
Because Uber and Lyft drivers are considered independent contractors, drivers need to have and pay for their own personal car insurance policies.
With the growing popularity of rideshare services, insurance companies have begun to see the value in catering to this niche market. Your company may already sell policies tailored to rideshare drivers.
Currently in Massachusetts, only USAA offers ride share insurance coverage.
Uber and Lyft coverages
Uber and Lyft offer additional coverage such as liability, uninsured motorist, collision, comprehensive, and personal injury protection to their on-the-clock drivers and their accompanying riders.
Both Uber and Lyft have broken down this added coverage into stages of the pickup process which include offline, available, en route, and on trip.
If you can't decide whether to work for Lyft or Uber, many people do work for both throughout a shift so that they don't miss any possible fares on a slow night.
However, Uber has been known to frown upon their drivers who work for other rideshare companies.
Step-by-step application process to become a Lyft driver
1. Start an application
Apply to drive for Lyft online by first filling in some basic information about yourself.
2. Upload the necessary documents
Lyft's application requires proof of a few separate documents from potential drivers including your driver's license, vehicle registration, proof of insurance, etc. Simply share photos of the required documents by uploading them to the online dashboard.
You will need to create a Lyft account or sign in with Facebook to access the dashboard.
Some states or cities may require additional documents like vehicle inspections by a mechanic.
Lyft driver requirements
You do not have to worry about figuring out additional state requirements on your own.
You will receive emailed instructions during and after the application process about these specific requirements in your region.
Lyft driving record and background check
Lyft reserves the right to disqualify driver applicants for any of the violations listed in the table or any other safety related reason they deem unacceptable.
If you do not pass your Lyft background check, you will receive a rejection form and instructions for how to challenge the decision via email.
DMV Check
Lyft uses local DMVs as a third party to check every applicant's driving records. The DMV checks for things like moving violations and convictions.
Background Check
Lyft's criminal background check is also provided by a third party service which includes national and county-level databases. In some cases, local courthouse records may also be checked back a minimum of 7 years in California or other locations.
Specifically in New York City, DMV and criminal background checks are completed by the Taxi and Limousine Commission (TLC) according to their licensing standards.
Lyft mentor session
In most cities, the last step of Lyft's driver application process is a vehicle inspection. Lyft refers to their vehicle inspections as "Mentor Sessions" because they are conducted by an experienced Lyft driver (select cities excluded).
Steps of a mentor session
Prepare your car for inspection by cleaning the interior and exterior.
Schedule a session with your mentor. A session can last up to 45 minutes. Your requested appointment time will be sent to and confirmed by one of Lyft's Mentors.
Meet with your Mentor at the specified time and location. Your session will include a vehicle inspection, practice ride, and chance for you to ask any questions you have about Lyft.
Lyft's 19 step vehicle inspection will cover the following:
- Foot brakes
- E-brake
- Steering mechanism
- Front and rear window, and other glass
- Windshield wipers
- Headlights
- Tail lights
- Turn indicator lights
- Brake lights
- Front seat adjustment mechanism
- Doors (open, close, lock)
- Horn
- Speedometer
- Body Damage
- Muffler and exhaust system
- Condition of tires, including tread depth
- Interior and exterior rear view mirrors
- Safety belts for driver and passengers
If any one of these items on your vehicle fail to pass inspection you will have to repair them and submit photos of each repair with a receipt. You can submit photos and receipts through Lyft's help page.
Lyft drivers are required to have annual vehicle inspections in order to continue to be eligible drivers.
3. Become an approved Lyft driver
Lyft will notify you via email when you've been approved. Until then, you can check your application status on their website.
Display the Lyft emblem on your car
Once you're approved you are required to print and display a colored Lyft emblem on the windshield of the approved vehicle.
You will receive an official welcome packet in the mail with an official sticker emblem.
It is strongly encouraged that you display the emblem in the lower right hand corner of your dashboard while you are working for Lyft.
In a few states and cities, identified in the table, it is required by government regulations that you have the Lyft emblem displayed on your car.
It is also recommended that you remove it when not working in order to avoid citations.
Lyft vehicle requirements
Lyft requires all potential vehicles to meet their own standards, listed in the table, as well as your local city and state's requirements.
Like Uber, Lyft also offers varying levels of ride services including Lyft Line, Lyft, Lyft Plus, and Lyft Premier.
Lyft Line is a shared ride with a maximum limit of 2 riders per request.
Lyft is the equivalent of UberX and can seat up to 4 riders.
Lyft Plus calls for a vehicle, like an SUV, that can seat up to 6 riders.
Lyft Premier vehicle and driver requirements
Lyft Premier calls a high end vehicle that can seat up to 4 riders. Premier drivers earn more than basic Lyft drivers.
Lyft Premier is currently available in Atlanta, Baltimore, Boston, Chicago, Dallas, Denver, Las Vegas, Los Angeles, Miami, New Jersey, New York City, Orange County, Philadelphia, Phoenix, San Diego, San Francisco, Seattle, Silicon Valley, and Washington, D.C.
In order to drive Lyft Premier you must:
- Maintain a 4.7 rating or higher
- Drive an approved vehicle for your specific city
Step-by-step application process to become an Uber driver
1. Start an application
Apply to drive for Uber online by first filling in some basic information about yourself.
2. Upload the necessary documents
Uber requires proof of a few separate documents from potential drivers including your driver's license, social security number, vehicle registration, proof of insurance, etc. All of these documents can be uploaded online through your Uber account.
Uber driver requirements
In certain areas, drivers must comply with additional requirements set by their city or state governments.
You will receive emailed instructions during and after the application process about these specific requirements in your region.
Uber vehicle inspections
Differing from Lyft, Uber requires that ALL vehicle inspections be conducted by a pre-approved auto repair shop or one of their official activation centers.
Uber's activation centers are located in partnered gas stations, parking lots, or mechanic shops. A list of these locations can be found on Uber's help section.
Inspections at the activation centers are free.
Uber's 19-point inspection covers:
- Headlights
- Taillights
- Turn indicator lights
- Stop lights
- Foot brakes
- Emergency/parking brake
- Steering mechanism
- Windshield
- Safety belts for driver and passengers
- Rear window and other glasses
- Windshield wipers
- Front seat adjustments
- Doors
- Horn
- Speedometer
- Bumpers
- Muffler/Exhaust system
- Tires, including tread depth
- Interior and exterior rear view mirrors
Uber drivers are required to have annual vehicle inspections in order to continue to be eligible drivers.
Complete a background check online
Uber's background check scans the last 7 years of both your driving record and criminal history to ensure you meet the company's safety criteria.
Uber's background checks require your social security number and license number.
Uber uses a third party, Checkr, to conduct their drivers' background checks. The screening process usually takes 3-7 business days, however it may take longer due to high volume.
In the meantime, you can log in to your Checkr applicant portal to get a status update.
4. Become an approved Uber driver
You will be notified by email when you are approved to driver for Uber. Once, approved you can download and sign into the Uber Driver app.
Display the Uber placard on your car
Once you're approved you are required to display an Uber placard on the front windshield, passenger side of the approved vehicle.
You can order a placard online and it will be shipped to you in 5-7 business days. While you wait you can print and use a temporary decal so that you can begin taking trips immediately.
It is strongly encouraged that you display the decal in the lower right hand corner of your dashboard window while you are driving for Uber.
In a few states and cities, identified in the table, it is required by government regulations that you have the Uber placard displayed on your car.
It is also recommended that you remove it when not working in order to avoid citations.
Uber vehicle requirements
Uber requires all potential vehicles to meet their own standards, listed in the table, as well as your local city and state's requirements.
Uber's different service levels UberX, UberXL, UberBLACK, and UberSUV also have their own requirements.
UberX/Uberpool car requirements
- Four door sedan
- No full size vans or Crown Victorias
- Seats five or more passengers (including the driver)
- Model year 2001 or newer (varies by city)
- In-state plates
- Pass Uber 19-point vehicle inspection
- No marked, taxi, or salvaged vehicles
- Registered in state
- Insured in state
UberXL car requirements
- Four door
- Seats 7 or more (including the driver)
- Model year 2001 or newer (varies by city)
- In-state plates
- Insured in state
- No marked, taxi, or salvaged vehicles
- Pass Uber 19-point vehicle inspection
- Registered in state
UberBLACK car requirements
UberBLACK is a luxury service that requires the driver and vehicle to have commercial insurance, registration, and licensing. This includes a TCP and airport terminal permit.
- Sedan, Crossover, or SUV
- Model year 2013 or newer
- 4 door
- Great condition
- Seats 4 or more comfortably
- Black exterior
- Black interior
- Pass Uber vehicle inspection
- Acceptable vehicles include:
- Audi: A6, A7
- BMW: 5 Series
- Cadillac: XTS
- Infiniti: Q70
- Jaguar: XF
- Lexus: GS
- Mercedes-Benz: E-Class
Do I need to have a rideshare insurance policy to drive for Uber or Lyft?
Even though both Uber and Lyft offer additional car insurance coverage while a driver is using the app, it is not meant to take the place of a personal insurance policy.
Uber and Lyft's additional insurance coverage is not enough to stand on it's own in the event of an accident while operating for a rideshare company.
An Uber or Lyft driver does not necessarily need to have a policy with one of the carriers that specializes in policies for rideshare drivers.
However, these endorsement policies are the best option for rideshare drivers who don't wish to have a claim denied because their carrier did not know they were hiring out of their car.
Insurance companies have yet to release reports of how many rideshare drivers they insure with their special rideshare endorsement policies.
Because it is currently such a small market, there is really no need for drivers to concern themselves with which company is the most popular, but rather which company is available in your state and price range.
Personal auto insurance when driving for Uber or Lyft
Taking a position with Uber or Lyft runs the risk of your insurance provider denying a claim or even dropping you as a customer once they discover you've been hiring out of your car.
Ridesharing companies offer little advice to their drivers about insurance coverage levels beyond state minimum. Drivers are often left uninformed and underinsured.
It's recommended that you get the most insurance you can afford so that if an accident exceeds both your and the rideshare company's supplementary coverage, you won't have to pay out with your property or financial savings.
Commercial auto insurance when driving for Uber or Lyft
Another option for potential rideshare drivers would be commercial insurance. Typically required for taxis and other company driving services, some states and cities require ride hailing services to also carry this kind of insurance.
Commercial policies include a Commercial Driver's License (CDL) and a commercial insurance policy in accordance with their transportation company and state requirement laws.
You could be precautious and purchase this policy in a state that doesn't require it, but then you would take on the extra expenses of receiving a CDL, an average cost of $5,000 to $7,000 a year.
As you can see from the requirements table, a few cities require commercial licensing for Lyft and UberX/POOL.
Uber does require commercial insurance and CDL specifically for their BLACK, SUV, and TAXI services. So budget carefully before deciding if you want to drive for a rideshare and, if so, at what service level.
While some of Uber and Lyft's driver and vehicle requirements can be difficult to meet, purchasing an in-state car insurance policy can be done in minutes on a quote comparison site, like Insurify.com. Insurify is partnered with many of the companies that bring your rideshare endorsement policies.
Conclusion
Even if Uber and Lyft are tight lipped about their growth, you can assume that the rideshare trend itself is continuing to expand.
New technology like driverless cars and business models like the Boston-based women driven rideshare service, Safr are being created to push the idea of what ridesharing could be to its limit.
Drivers and riders alike want to be behind the wheel of this enterprise.
