Car rental insurance: how to rent a vehicle between individuals?

Car rental insurance: how to rent a vehicle between individuals?

A vehicle is not just an expense item: it can also become a source of income for its owner, through car rental between individuals. This new practice is made possible by specialized Internet sites which allow supply and demand to meet, and also to organize and facilitate the service by undertaking, for example, to include a Car Insurancespecific.

Specialized sites and applications for the rental of vehicles between individuals: where to find around me?

City car, 4×4, utility, sports car, luxury, traditional or collector’s car… It is possible to rent out your private vehicle on specialized websites such as Getaround (formerly Drivy) Where Roadster. These intermediary platforms connect landlords and tenants. To rent a car, one hour or several days, the procedure is simple since the owner only needs to:

  • write a description of your vehicle
  • to specify the periods during which it will be available for rental

Once an individual selects the car he wishes to rent, its availability differs according to the operators. This can vary from the box set up onboard the vehicle to control the opening of the doors and the start, to the handing over of the keys in person for a more direct link between individuals.

Note that without an intermediary, it is strongly advised not to rent a car from an individual.

Is peer-to-peer car rental profitable and cheaper?

The car rental between individuals is an exchange of good processes win-win financially for both parties. A little wheeler finds in renting his car a way to make his investment profitable, to finance car maintenance or insurance for his car, for example.

For the renter, it is the possibility of benefiting from inexpensive car rental, while having a greater choice of vehicle, location, and availability times than for car rental from a professional renter and rental expert.

Renting a car between individuals: how does it work on the insurance side?

Theft, accident, violation of the highway code… Renting a car to a private individual involves certain risks. What insurance comes into play in the event of a claim in the context of car rental between individuals?

  • Rent through a rental company
  • Rent without intermediary

Most of the time, peer-to-peer car rental sites include car insurance in the rental contract, which includes:

  • compulsory civil liability insurance
  • warranties that cover material damage to the vehicle, the risk of fire and theft

This car insurance replaces that of the owner of the rented car. The cost is thus borne by the renter driver who is thus insured for the duration of the rental.

As in conventional car insurance, the guarantees provided for compensation ceilings and a deductible, the amount of which is the responsibility of the driver. The owner of the vehicle, therefore, retains his bonus in the event of an accident.

Before renting from a private individual, check the car insurance offered by the rental site, in particular the content of its guarantees and the conditions. It must be protective enough for both the driver and the vehicle.

Please note, if the conditions are not met, the insurance may refuse to cover the damage suffered by the vehicle and the driver.

Note that some rental platforms also provide 24-hour assistance coverage in the event of a breakdown or accident.

The rules of compensation in the event of a problem

In the event of an accident, the lessee of the vehicle must immediately contact the intermediary rental company with which he made his reservation. She will provide him with the instructions to follow with the insurance.

The amount of compensation for material damage will be calculated according to the guarantees taken out with the insurance company of the intermediary platform.

The amount of compensation for bodily injury to third parties will depend on the vehicle owner’s liability coverage.

What about the price of car rental between individuals?

Rental prices vary according to:

  • the price per day, determined by the owners
  • the duration (hour, day…) of rental and the reduction according to the duration
  • compulsory insurance and more or less extensive insurance guarantees chosen by the tenant
  • service fees (which ensure the operation of the platforms)
  • any supplements (additional insurance, young driver, additional mileage, etc.
By aamritri

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