A new trend is growing in popularity that allows a person to rent their car to anyone via a car-sharing website or app. According to Steven Webb, director of corporate communications for RelayRides, some renters are making between $250 and a thousand dollars a month depending on where they live and how well they market their vehicle. People can rent a car by the hour, day, or for extended periods of time.
The first question that comes to mind after considering the additional income is ‘What happens if the renter wrecks my vehicle?’ The truth is that most car insurance companies won’t cover a loss if it occurred while the vehicle was being used for commercial purposes. To get around this, the car-sharing sites often provide renters insurance and roadside assistance for the car owner.
Oregon, California, and Washington have recently passed laws that recognize car-sharing. The legislation is meant to prevent insurance companies from canceling an owner’s policy if the person is renting their vehicle and also ensures that the car-share programs provide liability insurance acceptable by the state.
One of the nice benefits of renting a car via the car-sharing sites is the variety of vehicles available. You could rent a 2007 Mercedes-Benz E-Class for only $38 a day, or a 2009 Porsche 911 Carrera for $299. It all depends on what people are willing to negotiate. Conversely, you could rent your car a few times a month and have that pay for your car and insurance payments!
Before joining a car-sharing site, we recommend you fully understand your auto insurance policy and state laws so that you are not personally held liable if your car is damaged by a renter. Comment below and let us know if you would let someone rent your car for money and remember to check out safeauto.com to see how much you can save with a free car insurance quote.