How can I rent my car out?
Before you can rent your own car out, you'll need to determine its eligibility with the company you have in mind. For example, consider the following prerequisites for listing on Turo:
- Auto insurance: While peer-to-peer car sharing companies do include protection plans and third-party liability insurance, you'll also need your own car insurance – at least the minimum required by your state – before you can actively list your car.
- Age and mileage requirements: Cars that were made over 12 years ago (unless they're "classic" cars), or have over 130,000 miles on them, cannot be listed.
- Clean title history: Your car cannot be a "salvage car," i.e., have been deemed a total loss at any point.
- Car value: Your car must have a fair market value that doesn't exceed $150,000.
It's also important to verify with your auto insurance carrier whether your policy specifically prohibits renting your car out. In some states, your carrier can drop coverage if they learn that your car is being used for commercial purposes like car sharing.
If you meet the above conditions and you're ready to list your car on a peer-to-peer sharing site, you'll register directly through the app or web page. Basic setup entails describing your car, taking and uploading photos (Getaround does this step for you), and listing the dates of availability for your vehicle. You'll be notified when your car is requested, at which point you'll either confirm or deny service and coordinate drop-off and return directly with the borrower.
What's the difference between car sharing vs. car rental?
Car sharing services and rental agencies serve the same purpose: loaning a temporary set of wheels to drivers on the go. Both services require lendees to be covered by auto insurance, whether it's a pre-existing policy or one temporarily taken out through the company. However, they have slightly different setups: Traditional car rental agencies are located in a physical location, like the airport, whereas pickup for a peer-to-peer service will often be at the car owner's home or a pre-arranged spot.
Another difference between a car rental and a peer-sharing company is cost. By some estimates, car sharing can be 30% less expensive than renting from a traditional car rental agency. However, the overall cost of renting from a car sharing vs. car rental agency boils down to how long and to what extent you're planning to use the vehicle. For example, running errands around town may be more affordable with a car sharing service, whereas traveling a longer distance may be better suited to a car rental agency; they often offer lower flat rates per day and unlimited mileage.
Running errands around town may be more affordable with a car sharing service, whereas traveling a longer distance may be better suited to a car rental agency.
Looking for more information about auto insurance? Our car insurance resource center has you covered.