Marie-Claude Dulac

By Marie-Claude Dulac

July 22, 2016


Peer-to-Peer Car Sharing and Auto Insurance

Article revised on 3 August 2018

In North America, car sharing has been available for over 20 years from well-established companies such as Communauto. But “peer-to-peer” car sharing, as part of the sharing economy, has experienced tremendous growth over the last few years and has become a popular choice among individuals. But what’s in it for users and how can they protect themselves? Interested? Keep reading!

Car sharing and auto insurance: What you need to know

The insurance industry has gradually been adapting to the growing trend of the sharing economy. Insurers must be proactive in this peer-to-peer car sharing marketplace, because users of sharing platforms expose themselves to potential risks from a damage, legal and security standpoint.

Renting your vehicle or residence for money is a commercial activity which is generally excluded from standard insurance coverages. So it would be wise for those who want to join the craze to take certain precautions:

  • Check the insurance coverage provided by the platform being used. If the platform doesn’t provide insurance coverage specifically for the commercial use of your vehicle, you must take out this coverage so that you are covered in the event of an accident when your vehicle is rented by a third party.
  • Notify your auto insurer. The insurer will note that you intend to use your vehicle in a commercial capacity, and let you know what’s covered and what isn’t by your individual auto insurance. The insurer can also advise you on required commercial coverage or the recognized car sharing Some of them include adequate insurance coverage in their service offering.
  • Make sure the services offered are legal.Some services cannot be offered legally by individuals who don’t hold required permits and authorizations. If you have any doubts, ask your insurer!

Turo: The safe car sharing option

Turo offers a peer-to-peer car sharing platform which allows individuals to rent out their cars to other individuals for a day, week or month. Founded in 2009 in San Francisco, this free and safe car sharing service is gradually becoming more accessible in Quebec thanks to agreements signed with some Canadian insurers, including La Capitale!

When you rent out your vehicle on this platform, it’s automatically covered by Turo’s commercial insurance coverage and roadside assistance during each rental period.

Are you a fan of the sharing economy? Find out more by reading our other articles on the subject!

Uber drivers: Are you covered under your auto insurance policy?
Renting with Airbnb? Check your home insurance!

Looking for Car insurance?
Find out more about the benefits La Capitale has to offer!

Find out more

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