The sharing economy is a growing industry, and cars are a valuable asset that people can rent to others. Let's say you're thinking of renting out your car from a peer-to-peer rental network like Turo: you'll need to work out insurance coverage directly with the rental service. Most auto insurance companies do not include car-sharing services in individual policies, so unless you are the outright owner of the vehicle, reimbursement will go to the company through which you are renting in case of accident, theft, or damage to your car. involving a tenant.
How can I protect my car if I rent it?
If you rent your car to others, your auto policy generally won't cover the vehicle while it's being driven by someone else. This is because your coverage is unique to you and your situation, including your driving record, age, where you live, etc.
Personal auto insurance is also not meant to include transactional scenarios like ride sharing. Some insurance companies may deny coverage if you rent your car.
Car sharing companies include liability policies, but it is essential to do everything you can to protect your car in the absence of direct car insurance. Consider taking extra precautions if you renting out your car, such as:
Every time you return your car, do a thorough inspection for any damage so you can document it and report it to the agency as soon as possible.
Consider limiting your car's mileage limits and availability days to reduce the chance of wear and tear.
Install an EZ Pass in your car; That way, you can quickly check any tolls that have been charged to your vehicle and request a refund from the driver through the app or the agency.
Some insurance companies may deny coverage if you rent your car.
Why should you rent your car?
Simply put, cars are expensive. They cost, on average, about $25,000, plus the ongoing expense of keeping them in working order. We are talking about oil changes, gasoline, routine maintenance, renewal of license plates, and periodic insurance premiums. So if you can offset those costs by renting your vehicle, why not take advantage of it?
There may be periods when your car is just sitting in your driveway, collecting dust. For example, maybe you take public transportation to work every day to avoid nightmarish traffic and parking situations. Listing your rental car from 9 to 5 while you're at work doesn't bother you in any way. The same thing happens when you leave the country on vacation for three weeks.
Finally, renting out your car could be considered environmentally friendly. If those who already have vehicles are more willing to share with those who don't, the demand for new vehicles would fall slightly. And the fewer vehicles we have on the roads, the happier the planet will be. Sure, we may be stretching ourselves a bit to get to this reasoning, but it's still a factor to consider.