Have you considered purchasing a vehicle but just can’t afford the additional payments and extra costs? Or in contrast, are you looking to get rid of your vehicle and rely on other means of transportation? Regardless of which situation applies to you, peer to peer car sharing might be the solution for you.
In case you aren’t familiar with the term, peer to peer car sharing is a growing trend that allows drivers to rent cars from private car owners, and car owners to rent out their vehicles for payment. (Similar to Airbnb) This is all being made possible through peer to peer car sharing apps like Turo or GetAround.
Peer to peer car sharing is considered more convenient than renting through traditional channels. With apps like Turo or GetAround you can find a car nearby, reserve it and pay for it, all from your phone. It’s a seamless easy transaction compared to the standard car rental scenario where you stand in line, fill out paperwork, do an inspection and endure a sales pitch for extras like insurance.
If you are considering a peer to peer car sharing rental, McLean Insurance advises you to keep these things in mind:
- Before you rent, call your risk management agent to see what type of coverage is included in your personal auto insurance policy. If you’re renting a car of similar value as your personal car, your current insurance coverage might be adequate for the rental. But if you own a 2008 Chevy Tahoe and planning to rent a Porsche 718 Cayman, it is likely that you will need additional insurance coverage to protect yourself in case of an accident.
- If you have dropped collision and comprehensive coverage from your auto insurance policy on an older car to save money, you will not be covered on any rental vehicle. You will need to purchase additional insurance coverage when you rent a car to be covered in the event the car is damaged or stolen.
- Call the credit card company that you’ll be using for your car rental. If there are any gaps in coverage with your auto insurance policy, the credit card company could provide secondary coverage.
- It’s important to know that peer to peer car sharing services may impose unexpected fees. Be sure to check the fine print of any agreement you sign.
McLean Insurance’s risk management agents appreciated the many environmental, logistical, and financial solutions peer to peer car sharing provides, we just advise you to be sure you are properly covered. If you have any questions, we welcome you to contact one of our agents by clicking here.
Do you want to rent out your car through a peer to peer car sharing program? Read this article before getting started.