With significant growth & popularity of services such as Uber, Lyft, AirBnB, etc., peer to peer sharing has become all the rage. One of the newest trends in our sharing society is peer to peer car sharing.
If you are a resident of the DC metro area, you may even have recently seen TV commercials from a company called Turo that showcases how easily you can monetize your vehicles that may otherwise be sitting around in your driveway and costing you money in the form of loan payments, insurance, depreciation, maintenance, and so forth.
If you are tempted by the peer to peer car sharing concept and are considering dipping your toe in it by renting your vehicles through one of these services, McLean insurance would like for you to consider the following before diving in head first.
McLean Insurance’s Personal Lines Manager – PJ Baker – says “ The insurance world has not yet adapted to the peer to peer car sharing trend.” She goes further to say that in the world of insurance, renting your car to someone else is often classified as a business by insurance carriers.
The moment you accept payment for any usage of your vehicle, your auto insurance coverage is rendered null and void. Therefore, if you currently have an individual auto insurance policy, your rented vehicle will not be covered by insurance if it were to get in an accident. This would leave you stuck paying out of pocket for the damages and injuries.
PJ mentions that a few carriers are slowly getting used to the idea of personal vehicles being rented out and have recently begun offering ride sharing endorsements to the personal policies. She recommends that if you are interested in getting involved in a peer to peer car sharing program, you should talk to your current carrier or agent about it and don’t be surprised if they require you to carry a commercial auto insurance policy. This policy will cover your carsharing activity and allow you to be appropriately covered in case of an accident.