We live in a world where there are more opportunities to make and save money than ever before. Need to make some extra money? Just drive for Uber, Lyft, or a courier service. Don’t have a car? Just summon an Uber or Lyft ride with your phone, or rent a car by the hour using one of the many peer-to-peer car rental services.
One such car rental service that is especially exciting for both car renters and car owners is Getaround. The company allows private car owners to rent out their vehicles by the hour, day, week, or even month. This can result in rental earnings of thousands of dollars per year.
On the renter side, Getaround represents an exciting new alternative to traditional car rental. No more standing in long lines, paying high rental fees, or dealing with bloated, outdated companies. Just easy car rental when you need it.
When someone is renting out their car to another person, however, questions of insurance coverage are bound to come up. What kind of coverage does the renter have if they’re in an accident? Does Getaround provide coverage to repair or replace the owner’s vehicle if it’s damaged? Do renters still need to have personal auto insurance policies?
In this article, we’re going to address these questions. We’ll look at how Getaround insurance works from both the perspective of car renters and car owners. This way, you can feel informed before you rent or list a car.
You’ve learned about how Getaround is a promising alternative to car rental companies, and you’ve decided to use the service. You pick up the car without any problems and begin your trip. As you’re approaching a red light, however, you don’t see the car in the left lane merging in front of you until it’s too late.
You rear-end them, breaking the front windshield of the car you’re driving and cracking the other driver’s bumper. Luckily, no one got hurt, but you’re wondering if you’ll have to pay for any of the damages to your or the other driver’s car.
Situations like these are why Getaround provides insurance to renters. What exactly does Getaround cover? As a renter, you should know that Getaround provides the following insurance coverages:
- Liability Coverage — You’ll be covered up to the liability limits carried by the vehicle owner or three times the state minimum (whichever is greater).
- Comprehensive and Collision Coverage — In the event of an accident, theft, fire, vandalism, or weather damage, the owner’s vehicle is covered up to its actual cash value.
- Medical Payments Coverage — You’re covered up to $1,000 for injuries arising from a car accident. Note that, in the scheme of things, this isn’t a particularly high amount. It’s meant to serve as a supplement to your regular health insurance coverage, which you should have anyway.
However, the above protections do come with some caveats. To start with, you’ll have to pay a damage fee fo $1,000 for any accident you’re involved in while driving the vehicle, even if it wasn’t your fault. If you’re driving a classic or exotic vehicle, you’ll pay a fee of $2,500. If you violate Getaround’s terms of service when you’re involved in the accident, then you may have to pay the full amount of the claim.
You’re not required to have a personal auto insurance policy when renting a vehicle with Getaround. This is one of the perks of the service, just as it would be for renting a car through any service.
Now that you understand the coverage available to renters, let’s look at how things are from the perspective of a Getaround car owner. As someone renting out your car on Getaround, you’ll have the following kinds of coverage:
- Liability Coverage — As a vehicle owner, you’re covered up to a combined single limit of $1,000,000 for liability. This includes personal liability for the renter, third-party liability for passengers and other affected parties, and third-party property damage arising from a car accident.
- Comprehensive and Collision Coverage — You can rest assured that you’ll be taken care of if your car is damaged or totaled. You’re covered for theft, fire, vandalism, weather damage, and any damage to the vehicle in the event of an accident up to the actual cash value of the vehicle. If you owe more on your auto loan than the vehicle’s actual cash value, then consider getting gap insurance to make up for the difference if the car is totaled.
- Uninsured and Underinsured (UI/UM) Coverage — In California, Oregon, Texas, and Virginia, UI/UM limits of $30,000 per person and $60,000 per accident are provided. UI/UM limits of $25,000 per person and $50,000 per accident apply in Illinois. In Texas, UM/PD limits of $25,000 are provided. In Virginia and Oregon, UM/PD limits are $20,000 (if you live in a state where any of the above apply, then you’ll understand).
- Personal Injury Protection (PIP) — The law requires that you have this type of coverage in both Oregon and Texas. In Texas, PIP coverage is $2,500. In Oregon, it’s more comprehensive, including $15,000 in Medical and Hospital expenses, $3,000 per month in Income Continuation expenses, $30 per day in Loss of Service expenses, $5,000 in Funeral expenses, and $25 per day (up to a maximum of $750) in Child Care expenses.
While those are the basics of the coverage, you should be aware of specific cases in which the coverage may be different or may not apply at all.
First, note that while Getaround does cover excessive wear and tear resulting from a rental, they do not cover normal wear and tear that comes with large amounts of driving. As a vehicle owner, you’re responsible for maintaining your vehicle and dealing with all wear and tear that arises during the course of normal vehicle use.
Also, note that Getaround does not insure any personal property left in the car. This includes CDs or other audiovisual equipment owned by either the car renter or the vehicle owner. Be sure to remove anything you don’t want damaged, lost, or stolen from the vehicle before the rental.
Furthermore, you need to report all incidents that occur during a rental within 48 hours of the end of the renter’s trip. If you don’t do this, then you may forfeit any coverage on the part of Getaround and be responsible for covering the full cost of repairs and any loss or liability arising from the incident.
Finally, you should check with your auto insurance company to ensure that renting out your vehicle through Getaround won’t affect your auto insurance policy. Getaround’s policy applies before your personal auto policy in the event of any incident.
Drive and Rent With the Assurance of Insurance
There’s no need to worry when renting a vehicle with Getaround. The company’s insurance covers you in the event of accidents (though you do have to pay a fee for damages that occur). Likewise, you’re covered as a vehicle owner for both any liability issues that arise and for damages that occur to your vehicle.
Please note that this post is for informational purposes only, The specifics of Getaround’s insurance policy are subject to change without notice and vary based on state. Also, every claim is different and is assessed on a case-by-case basis, so you should use this information only as general guidance.
To learn more about how to get started using Getaround as a renter or vehicle owner, check out our complete guide.
Brett Helling is the owner of Ridester.com. He has been a rideshare driver since early 2012, having completed hundreds of trips for companies including Uber, Lyft, and Postmates. In 2014 he acquired Ridester.com to share his experiences with other drivers. His insights are regularly quoted by publications such as Forbes, Vice, CNBC, and more. He is currently working on a book about working in the Gig Economy, expanding his skill set beyond the rideshare niche. Read more about Brett here.