From the start of the pandemic to now as inflation rises, searching for a side hustle has grown in popularity. People are finding new ways to make extra money on the side to make up for it through means like working for Shipt.
While side gigs don’t always have major commitments to them, in some cases there will be insurance considerations. We’ll take a look at 5 different ways you can make more money in 2023, as well as what to consider when it comes to insurance.
#1 – Become a Delivery or Gig Driver
Working for Uber or Lyft can give you some extra cash while being fairly low maintenance. Exactly how much money you can make depends on the population of your driving area, vehicle expenses, and which company you are driving with. For example, Uber drivers can make $15 to $30 per hour, while Lyft drivers can make $20 to $28.
There are some requirements for becoming a gig driver, and they vary from each company. In general, you’ll need a valid license and insurance, a clean background check, and at least one year of driving experience. In some cases, the age and condition of your vehicle and the number of doors matter as well.
Before expecting a ton of cash to roll in with a gig driving job, there are some expenses you have to keep in mind that will end up taking away from your income. Gas, vehicle maintenance, insurance, car or lease payments, taxes, and toll fees are just some of the extra expenses you have to factor into your income.
Is insurance necessary?
Rideshare insurance is something that you will benefit from as a driver. If you were to get into an accident while on the clock, your regular insurance likely won’t cover any of the claims.
Many rideshare companies do provide liability insurance, but they also have high deductibles, so it’s not smart to rely solely on that coverage. Most major insurers can offer rideshare insurance as an addition to your regular insurance policy.
However, food delivery isn’t the same as ridesharing when it comes to insurance. In comparison to other gigs, food delivery is fairly new, so delivery-friendly policies have not been implemented yet. You could still talk to your insurance agent to see what they can do for you.
#2 – Get Paid for Your Creativity
If you’re a person who has creative skills or hobbies, monetizing them could be a good side gig for you. Etsy is a website that sells a large variety of handcrafted or vintage items. Many people buy wall decor from Etsy, so if you’re an artist or graphic designer, you can make printables to sell as well.
Keep in mind that you’ll have some extra costs for shipping and keeping up with your inventory stock. But if you have a unique and desirable craft, you should be able to make a decent amount.
Is insurance necessary?
When it comes to Etsy, insurance isn’t necessarily required. Although it’s not a requirement, someone who plans to start their own business on Etsy should assess the need for insurance. It can still be a smart business move to purchase insurance.
Some other insurance policies to consider are:
- Business property insurance protects business property, such as equipment and inventory.
- General liability insurance covers any bodily injury, property damage, or personal injury claims.
- Product liability insurance covers the legal costs associated with injury or damage claims caused by your product.
You may also need to add an endorsement to your homeowners’ policy. This is called an incidental business endorsement, and it can help you if your equipment or inventory was destroyed in something like a house fire. Your normal homeowners’ policy would most likely not cover anything related to your small business.
#3 – Become a Private Tutor
Tutoring is a pretty flexible side gig since you can do it either in person or completely online. You’ll make your money depending on your experience, knowledge, and what’s needed right now. This job could be a slower start than others since it relies on students needing help with something.
Sites like Tutor.com, TutorMe, Studypool, Care.com, and even Craigslist are good ways to get started on your search. If you’d prefer in-person tutoring, you can advertise yourself at local schools and community centers.
It’s important to be careful when searching for tutoring gigs, though. Sometimes the site users are just looking for someone to do their homework or essays for them, which isn’t beneficial for either of you.
Is insurance necessary?
Similar to selling your work on Etsy or Fiverr, it’s not necessarily required to have insurance. However, it’s beneficial for you to find general and professional liability insurance in case of an accident.
#4 – Become a Social Media Manager
Some smaller companies with few employees could struggle with having a strong and consistent social media presence. Even larger companies can struggle to balance social media with all their other tasks. This is where hiring a social media manager is a huge help for them.
If you’re someone who is social media savvy, this may be a perfect option for you. However, you may still need to take a course that teaches you the necessary skills. Creating your own website and building up your own social media channels is also helpful, so this can take more setup than the other options listed.
Is insurance necessary?
If you’re getting hired by another company to be a social media manager, they will likely have coverage for you. If you’re doing this freelance, however, you should still consider getting business insurance to keep yourself safe from any claims.
#5 – Rent out That Extra Room
If you have a spare room in your home that stays empty most of the time, renting it out could be a good way to make some extra cash. The success of renting out a room in your home really depends on your area. If you live in a city that’s home to a major sports team or relatively close to an amusement park, you’ll likely have a higher demand.
Like being a rideshare driver, there are some extra expenses to keep in mind. For example, you’ll have to clean and keep up your home, replace home goods, and pay some service fees. You should also take a look at your rental agreement before you get started on this endeavor.
Is insurance necessary?
When working with Airbnb, you’ll have accidental property damage coverage and host protection insurance through them. These policies will help you in case of an accident, but renters insurance is still a benefit to you. You will also benefit from informing your insurance company that you plan to rent out a space in your home.
Luke Williams writes and researches for the auto insurance comparison site, AutoInsurance.org. His passions include best practices for insurance and profitable side hustles.
