The sharing economy is rapidly expanding into new areas. People offer their assets, such as their home, cars or services, like being a driver, to others through online platforms. Mobile and online platforms, such as Airbnb and Uber, provide home rentals and taxi services respectively and are great examples of this new economy.
Now comes Turo, a peer-to-peer car sharing platform, which allows car owners to list their personal vehicles online and rent them out to others.
This is a great opportunity for people, who hardly use their car, to earn a little extra money. All you need to do is get your car registered with Turo. Then you can allow or not, as the case may be, any approved Turo renters that wish to use your car.
The only issue is whether or not your current car insurance provider will allow you to put your vehicle into the peer-to-peer car rental marketplace. Currently, Intact, Novex and Jevco car insurance policyholders are permitted to join Turo.
If you are interested in participating in the car sharing initiative talk to your broker to make sure your car insurance provider allows it under their policy. Under normal circumstances the personal auto insurance policy in Ontario specifically excludes renting a car to a third party.
Once you’re up and running Turo takes a 25% commission from every rental that’s booked through their service.
What if the renter drives your car through a red light and gets into an accident?
Turo has a commercial insurance policy in place with Intact which provides coverage for your vehicle both during the rental period and the delivery period.
At that time the commercial insurance policy offers the following coverage”
- $2 Million Liability coverage
- Standard Accident (Injury) Benefits
- Collision and Comprehensive damage coverage for the vehicles
- Replacement cost coverage for vehicle up to 4 years old
This commercial policy will respond to any accidents with the car while it is being rented. This way your personal insurance policy should remain unaffected by a claim. Any claim or damage to the car is reported directly to Turo or to Intact.
Renters who become injured as a result of a car accident with the rented car have access to the standard accident benefits through the commercial policy under Intact.
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