Learn How Peer-to-Peer Car Rental Insurance Works

Does my insurance cover my car if I rent it out through a P2P car-sharing program?

Normally, no, unless you have a commercial auto insurance policy rather than a personal auto insurance coverage. However, personal policies are now being drafted to exclude peer-to-peer car-sharing networks expressly.

 

Are more insurance companies offering riders to accommodate peer-to-peer automobile sharing (like they do now for ridesharing services like Uber or Lyft)?

“No, I’m not seeing as many options for P2P car-sharing systems as I am for ridesharing drivers.” “It is an area where we may see some growth soon because vehicle insurers have increased their policies with specialized ridesharing coverage or endorsements because they discovered a market for once Uber and Lyft took off,” Gusner adds.

“Alternatively, insurance firms may simply advise customers renting out their automobiles to obtain a basic commercial policy.” If your policy does not cover the rental,’ the only option for the driver appears to be purchasing coverage from the firm running the P2P service, such as Turo.”

How do liability, comprehensive, and collision coverage work in company insurance policies?

Liability automobile insurance compensates for damage you do to another vehicle and medical expenses for anyone wounded in an accident you cause. However, responsibility does not cover the car you are driving or compensate you for your injuries. Collision coverage pays for damage to your automobile regardless of fault, whereas comprehensive coverage pays for vandalism and theft, as well as damage from hail, flooding, and fire.

 

“As for physical damage coverage (collision and comprehensive) from the firms running the P2P services, my understanding is that you only obtain collision and comp coverage with Turo if you pay for premium or basic host or guest insurance protection packages,” Gusner explains.

“It looks that there is a policy for Getaround that is a combined single limit, which means that liability and physical damage coverage are all packaged into that one maximum of $1 million,” she explains. “As a result, all claims are assessed against that single maximum limit amount.”

Should I get commercial insurance if I use peer-to-peer car-sharing services?

“I’d recommend speaking with your auto insurance company before engaging in a P2P car-sharing scheme to ensure that you’re fully covered.” Your insurer will inform you of what your policy covers and whether you need to upgrade to business coverage. “It’s preferable to be proactive, so you don’t find yourself in a financial situation because you don’t have the coverage you require,” adds Gusner.