Car Sharing Insurance

Today, we’re going to be talking about car sharing insurance. Car sharing insurance is coverage that protects a driver when they rent a vehicle from a car sharing service or peer-to-peer rental service. Unless explicitly stated otherwise, your personal car insurance policy will usually extend to cars rented through these services. 

Major car sharing companies, like Zipcar and Enterprise Car Share, automatically include the minimum required car insurance in all of their rentals. Additionally, if you pay for the rental with a credit card, you may automatically get some level of coverage for theft or damage to the vehicle. Peer-to-peer car sharing services, like Turn and Getaround, work a bit differently. These companies allow private car owners to rent out their personal vehicles to strangers. If you’re renting a car with one of these companies, your personal insurance policy will act as primary coverage, meaning that it will be used first if you get into an accident. 

The major peer-to-peer companies also provide supplemental insurance that can be used as primary coverage if you don’t have a personal policy. If you’re the owner of a car on a peer-to-peer service, you cannot rely on your personal car insurance to cover you, since it usually won’t apply for public rentals.  Instead, you’ll need to use the insurance offered by the peer-to-peer service. For drivers thinking of joining a car sharing service or peer-to-peer service, here are a few things to keep in mind. 

First, if you don’t own a car, non-owner insurance is an affordable option if you want higher insurance limits than what you’re automatically given. And if you can’t afford to pay the deductible that’s charged in the event that the car is damaged, you should consider getting the collision damage waiver. Next, check for any damage before you rent a vehicle. This ensures that you don’t get blamed for damage that you didn’t cause. 

Finally, be sure to officially end your rental so that you’re not liable for any subsequent damage. If you want to purchase your own coverage for car-sharing or peer-to-peer services, we can help you get started. I hope you enjoyed this session on everything you need to know about car sharing insurance. So always be sure to contact a professional before making any financial decisions.