Uber And Lyft Requirements: Drivers, Vehicles, And Insurance

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.

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?

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 table above outlines the average gross earning per trip in May 2015. 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.

As you can see in the table, 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.

These endorsement policies are a fairly new development in the auto insurance industry. Therefore, only a handful of insurance providers carry these specific coverages.

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:

1. Foot brakes


2. E-brake


3. Steering mechanism


4. AC/heat


5. Front and rear window, and other glass


6. Windshield wipers


7. Headlights


8. Tail lights


9. Turn indicator lights


10. Brake lights


11. Front seat adjustment mechanism


12. Doors (open, close, lock)


13. Horn


14. Speedometer


15. Body Damage


16. Muffler and exhaust system


17. Condition of tires, including tread depth


18. Interior and exterior rear view mirrors


19. 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:

1. Maintain a 4.7 rating or higher


2. Drive an approved vehicle for your specific city

Lyft New York City Premier requirements

Lyft Premier requirements in other cities

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:

1. Headlights


2. Taillights


3. Turn indicator lights


4. Stop lights


5. Foot brakes


6. Emergency/parking brake


7. Steering mechanism


8. Windshield


9. Safety belts for driver and passengers


10. Rear window and other glasses


11. Windshield wipers


12. Front seat adjustments


13. Doors


14. Horn


15. Speedometer


16. Bumpers


17. Muffler/Exhaust system


18. Tires, including tread depth


19. 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.