- Guest Contributor
- March 30, 2021
If you’re a gig worker or independent contractor and you’re thinking about renting a vehicle to drive for a ridesharing company or do deliveries, the first thing you’re probably asking is this:
Can I rent a car and use it for ridesharing or other gig work?
The answer is yes, with conditions. For example, Lyft only allows renting a car through one of the rental companies taking part in its Express Drive program. Uber only permits rentals from its vehicle marketplace vendors. If your gig platform doesn’t specify a rental vendor, you can also use a service like HyreCar to get your gig work on wheels going.
Do You Have a License and Insurance?
To legally rent a car, most auto rental companies require you to have a valid driver’s license and be able to show proof of insurance. Be aware that some companies won’t rent vehicles to drivers under the age of 25 or, if they do, will charge a young driver fee – which can be as much as $35 a day.
If you’re going to rent a vehicle, remember that you’ll still need to carry adequate insurance. If you’re going to be renting a car or truck for business use, make sure you’ve talked with your insurance carrier first. Not all policies will cover you for business use.
This may also be a good time to shop around for auto insurance to make sure you’ve got the best deal. Jobble Auto is a good place to start. It allows you to search for auto insurance offers in your area.
Is Renting a Car a Good Idea Financially?
It depends. You’ll have to balance the cost of renting a vehicle against your schedule for gig work and your costs. If you’re driving a lot, a rental fee can cut into your profits but can be offset by picking up additional rides. You’ll want to compare the cost of renting to the cost of buying a car to see which is a better fit for your needs.
Renting a car can be helpful if you’re doing a gig job as your primary income and your personal vehicle needs repairs or is sidelined for another reason. It keeps the cash flowing as long as you’re making enough to cover the rental costs and earn the rates you need.
What’s the Commitment for the Rental?
You can rent vehicles by the day, week, month, or longer. There’s no commitment for a long-term rental although you’re likely to get a better daily rate if you rent for longer periods.
Renting a car may also be an option if you’re driving part-time. For example, if you’re only doing gig work on the weekends and don’t want to put the miles on your personal vehicle, it might make sense to rent. It saves wear and tear on your car, which can extend its life.
Decide if it’s a Good Fit
If you’re unsure whether it makes sense if renting a car is right for you, you may want to try it for a week or two and do the cost analysis. You might need to be comfortable to spend money to save. Where you live can also impact your success doing gig work with a rental car. At the end of the day, we recommend that you consider the costs and your earning potential and do what’s best for yourself in the long run.
About the Author: Paul Dughi has an MBA in Business Administration and has held executive management positions in the media industry for the past 30 years. He is an Emmy® Award winning Producer/Writer and has authored two books on Marketing, Management, and Sales. You can find him on WriterAccess.
