Car owners are always in need of extra money, and the majority of them are considering listing their vehicle in a car-sharing service program. Online companies are offering drivers the option to rent their automobile to another licensed driver who is in immediate need of transportation. Each transaction is set up through an online service that matches renters with car owners in the same market. The outline of the car-sharing program is simple: the more days you make your car available on the app, the more money you stand to earn each month.
However, the thought of allowing a total stranger to have access to your vehicle can become an uneasy situation. Most of the concern lies in the area of who is liable if an automobile accident occurs. Car owners must get verification on which party is responsible for the repairs.
Individual Auto Insurance Policies Won’t Cover Car-Sharing Programs
It’s not shocking to learn that most car insurance providers will not cover an automobile used in a car-sharing program. Their biggest complaint is not knowing the driving history of the individual behind the wheel. Also, providers may have a problem with insurers using their vehicle in a money-making adventure. Agents from NY Twin Bridges Insurance Agency in Albany, NY can explain how expenses could exceed the cap set within an individual auto insurance policy. They will show how commercial auto insurance might be a better option for this style of driving.
Car-Sharing Companies Offer a Wide Range of Insurance Coverage
The terms and policies may differ between each car-sharing companies, but all do offer auto insurance (collision, liability and comprehensive) coverage to car owners, renters, and third-party victims. The primary coverage goes into effect during the period when the owner delivers the vehicle to the renter for use and concludes when the automobile is returned. Collision and comprehensive coverage safeguards against theft, vandalism and other damages to the car. Having liability insurance will come in handy if the vehicle is involved in an accident and the renter is ruled to be responsible for the crash.