“We are seeing a Nationwide car rental shortage that is driving up prices and pushing down availability. The simple laws of supply and demand are coming into play, and as always, necessity is the mother of invention. This is Commissioner Troy Downing.
The high costs and low availability of rental cars have led to increased peer-to-peer car rental businesses. In other words, there are new programs that allow people to rent their personal automobiles to strangers and earn rental income. An example of a peer-to-peer car-sharing program is a company called Turo. Turo is a company that allows you to rent your car to a stranger, much like renting your home through Airbnb.
This may be a way to earn extra income, but it is not without risk. Your personal auto insurance policy will likely not cover loss or damage that occurs while the vehicle is rented.
Third-party peer-to-peer rental companies may provide limited liability insurance protection but often do not offer insurance coverage for damage or loss to your vehicle. Some programs offer protection plans, but it is important to note that a protection plan is not insurance and does not have the same level of protection or oversight as a traditional insurance policy. If you rent your car to someone and there is damage, it is very likely you won’t be covered.
Make sure to understand the risks before renting your vehicle.
If you have questions, please contact our team of insurance specialists at 444-2040 or by going to CSIMT.gov.”