The burgeoning sharing economy has paved the way for individuals to rent out their cars as a source of income. If you’re contemplating making your car available on platforms like Turo, it’s imperative to address the insurance aspect directly with the service. Notably, many auto insurance providers don’t encompass car-sharing within personal policies. Therefore, if an incident involving your car arises while it’s rented out, compensation will primarily be directed to the entity from which you lease the car.
How do I safeguard my car during rentals? Renting out your car poses unique risks. Typically, when another individual drives your car, your personal auto policy might not come into play. This is because your insurance is tailored to your circumstances, such as your driving record, age, and place of residence.
Standard auto insurance usually doesn’t cover business-like operations, including ride-sharing. Some insurers might even nullify your coverage in rental scenarios.
While car-sharing platforms often have liability coverage in place, it’s crucial to take measures to safeguard your vehicle. If you’re leaning towards renting your vehicle:
- Conduct a comprehensive check for damages each time your car is returned, ensuring any issues are promptly reported to the platform.
- To mitigate excessive usage, set a cap on available days and mileage.
- Having an EZ Pass can aid in tracking tolls, ensuring you can seek repayment from the renter if needed.
Is it possible to rent my car without having insurance? Before listing your car on peer-to-peer platforms like Turo, you must have personal auto insurance that meets state guidelines. On Turo, hosts have to opt for a protection plan, which covers third-party liabilities. Conversely, platforms like Getaround provide a default protection plan. If you possess commercial insurance (usually suitable for those renting out several cars), these prerequisites might be exempted.
Am I insured by my policy when I rent a car from a ride-sharing platform? For the most part, yes. Your standard auto insurance usually extends to cars you rent. Consequently, the terms, including deductibles and limits, that apply to your policy would be applicable to the rented vehicle as well. For instance, if you have both collision and comprehensive insurance, they would be in force when driving a rented car.
Furthermore, if you lack personal auto insurance or wish for added short-term coverage, many peer-to-peer platforms offer the option to avail insurance during the rental period. The rates can vary based on the chosen coverage level and the car’s value.
Always revisit your insurance policy for in-depth insights, or seek advice from a local Bolder Insurance Advisor.