Does car sharing affect insurance?

Yes, car sharing affects insurance. Most car sharing companies, such as Turo and Getaround, provide insurance that covers the shared vehicles, but car owners who participate in these programs should still notify their personal insurer that their car is being used by other drivers through a car sharing platform. In most states, car insurance companies can drop policyholders who use their vehicle for car sharing, since it’s often excluded from policies. The exceptions are California, Washington, and Oregon, which do not allow insurers to drop customers just for car sharing.

If you are a vehicle owner and participate in a car sharing program, you can reach out to your insurer directly to learn about their rules and your state’s laws. Some insurers may require you to buy a commercial car insurance policy, but it will depend on your exact situation.

It’s also important to note that car sharing companies are different from ridesharing companies like Uber or Lyft, which require drivers to use their own vehicles.

Car Sharing Insurance for Car-Renters

If you don’t own a car and are using a car sharing service like Zipcar, Turo or Getaround, you are not required to have your own insurance. However, details can vary between companies, so be sure to read the company’s insurance FAQs. For instance, Zipcar and Getaround vehicles automatically fulfill each state’s insurance requirements, but Turo drivers without insurance will need to opt-in to the company’s protection plan.

To learn more, check out WalletHub’s guide to car sharing insurance.