Income protection for Rideshare Drivers

04.06.2020

Worldwide self-employment is skyrocketing. In France, Germany and the UK self-employment is growing faster than employment, and 35 percent of the US workforce has been casually employed. The gig economy is a massive driver of this increase, with ridesharing companies such as Uber, making self-employment more accessible.

The gig economy has advantages for workers, allowing a high degree of flexibility. However, if you are a rideshare driver, you don’t have all of the same rights as those who are regularly employed. It’s essential to consider how you’ll pay your bills and provide for your family if you are unable to work through sickness.

What is the current situation? Am I not already covered?

Some rideshare companies and other gig economy platforms do have some form of insurance in place. Uber drivers in the UK and EU are automatically enrolled in a partnership with AXA insurance. While this offers some protection, including lump-sum payments for injuries, it’s not a replacement for income protection. If a driver is unable to work through sickness, This insurance pays out £75 per day for only 15 days. Once the 15 day period ends, you’re on your own, meaning you either go back to work while sick or lose your income.

Do I need income protection insurance? It could cost me a lot over the years.

Illness can strike anyone, so the best thing to do is to imagine how your life would be if you suddenly had no income. How long would you be able to cover your bills? Would you need to make sacrifices, do you think the financial risk could lead to you going back to work while still sick? Would you find the drop in income stressful? Furthermore, taking time off isn’t that rare. In the UK alone, one million people take time off work due to sickness or injury.

Can I afford it?

Traditional income protection is expensive for sole-traders, with the average monthly cost almost £60. It’s a high-expense, especially if your income isn’t consistent. That’s why VouchForMe has created alternative income protection for that’s perfect for the gig-economy. That gives you control over your insurance and your money at a much lower cost.

Income protection with VouchForMe

By partnering with other rideshare drivers, you can take advantage of your community and build up a fund that gives you protection if you’re unable to work. With VouchForMe income protection, each member contributes a monthly sum, building up a pot, if one driver is unable to work for longer than a month, they get a payout until their ready to get back to business. Your community is there for you during the rough times, and you’re there for them.

Unlike classical insurance, we don’t charge a premium, and the monthly contribution is yours to manage. If you decide to leave the group, the money you’ve contributed remains yours and will be refunded minus any deductions made to group members who’ve been unable to work. VouchForMe’s income protection covers users for up to two years, so you can focus on getting better.

The payouts are predefined by the monthly contribution:

  • 25 EUR monthly contribution ⇒ 750 EUR monthly payout
  • 50 EUR monthly contribution ⇒ 1000 EUR monthly payout
  • 75 EUR monthly contribution ⇒ 1500 EUR monthly payout
  • 100 EUR monthly contribution ⇒ 2000 EUR monthly payout

Interested, Get in touch

Ready to start? Get together with other like-minded drivers and contact us here. We’ll get the administration sorted, and you can carry on working with peace of mind that your way of life is safe.