If you’re going on holiday and don’t need your car, you could hire it out and make some money while you’re away.
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How does renting out your car work?
Think of it as ‘Airbnb’ for cars, with companies like Car & Away, hiyacar or Drivy all in the market of matching up people who need wheels with those who’ve got them to hire.
As a vehicle owner, setting out your pitch using one of the online rental companies is easy.
You list your vehicle details plus rental price, availability and location and wait for potential borrowers to get in touch.
Some companies offer ‘keyless’ technology so you don’t even need to be around to hand over the keys.
And when it comes to insurance, your car’s covered by the rental company insurance, (instead of your own), while it’s hired out, and the usual deal is that cars should come back in the same condition and with the same level of fuel in the tank.
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Your rental options & how much each will pay/charge
Car insurance considerations before you sign up
Is this a hazard for your own insurer?
“If you’re thinking of renting your car through these services, you should tell your insurer”, says Direct Line’s Chloe French.
“What one insurer will be happy with, another may not be”.
And even if your vehicle comes back looking clean with fuel in the tank, you need to consider the ‘wear and tear’ on your vehicle along with any increased mileage warns Aviva’s John Franklin.
“Vehicle mileage is one of many factors affecting insurance premiums and a higher mileage can potentially impact your future insurance risk”.
Check you’re protected
All the companies listed provide their own insurance cover, through the likes of Axa, Admiral and Allianz.
This works in place of your own policy and covers the cost of any damage while your car’s hired out.
“Do check the precise level of cover and any limitations”, warns Aviva’s John Franklin, “as you may be disadvantaged in the event of an accident, if a courtesy car is not available while yours is being repaired”.
Most companies do offer a ‘courtesy car’ as standard, but with Drivy, courtesy cars are only available if owners opt for ‘Collision Damage Waiver’ which increases the borrower’s bill.
And even with companies using ‘keyless’ technology, if you’re being asked to leave a spare key in the car, your own insurer may not be happy.
Nick Ansley, head of motor at Co-op Insurance warns that “leaving keys in cars tends to be one of the main exclusions under insurance policies, in the event of the car being stolen”.
And that's about it. Head this way for more ways to make money from your car.