A recent article on car sharing by AOL News warned that letting others take your car as a source of revenue could end up costing you more than you make. It’s not uncommon.
Some drivers let others drive their car or car share. The University of California Berkeley finds about 8,000 vehicles are used this way by a half-million people who partake in 27 programs across the U.S.
The programs are largely found in urban centers where Jolly Wheels, Getaround, and Relay Rides are based and help people connect to others who may want to rent their car for a short while.
The problem – your own auto insurance may not cover someone else using your car. The article said the insurance industry wants to discourage using your car for income because of the additional risk of an auto accident injury by renting your car to strangers who may not have good driving habits. They also may not know the roads or be out in inclement weather.
However, there are additional insurance policies to consider to be covered in a peer-to-peer car lending situation.
A $1 million personal umbrella policy will offer coverage when your standard auto liability coverage is exhausted. The cost is about $150 to $300 a year for the additional coverage. The umbrella liability is especially important if you have assets you want to shield, which can easily be exhausted following a devastating auto accident with injuries or death. This is true whether or not you share your vehicle with others.
The Clearwater auto accident lawyers at Farah & Farah recommend the million dollar umbrella policy under any circumstances because an unexpected auto accident can change your life forever. If you or a loved one is injured in a car collision, call us at (800) 533-3555 so we can help you decide the best course of action for your future.