Airbnb for Cars: Car Sharing Platforms

Renting out personal vehicles is often referred to as Airbnb for cars. You can use platforms to list your car for rent, set your own price, and choose the rental duration.

There are two platforms that you can go through to attract customers.

Turo: Earn Passive Income

Turo is an international platform where guests book any car they want. The hosts can build a successful business by sharing their vehicle.

It operates in 12,000 cities worldwide and has over 3.2 million guests.

You can share as many cars as you wish and scale your business up or down. If you’re sharing your main car, you can commit a little or a lot depending on your schedule. You can also quit at any time; there's no contract with Turo.

According to Turo, the average income of one car is $10,868. If you scale up, you have the potential to earn even more. Nine cars will pull in roughly $97,814 annually.

You will have access to up to $750,000 in third-party liability insurance from Travelers. But this doesn’t include damage to your car.

You can purchase an array of protection plans that include varying levels of reimbursement for car repairs up to your car's actual cash value.

Turo’s easy app lets you manage your business. You’ll be able to:

• manage your bookings
• manage trips
• tweak pricing
• message guests
• Turo also gives you 24/7 roadside assistance and customer support for your guests.

Getaround: Extra Money

Getaround is the smaller of the two companies. They have over 1.6 million guests.

They do have a unique way to share your vehicle. You can either exchange keys by meeting up with the driver or have the driver open your car with an app.

With the app, the guest only has to:

• Book
• Locate
• Unlock

The car could be anywhere, and you don’t have to be there.

The meet-up is suitable for car sharing outside the Getaround Connect eligible zones.

Once a guest has gone through an identity check, they can book your car. They can only book your car when you make it available. The driver is required to take eight pictures of your car from different angles using the app.

You’ll receive a bank transfer five working days after each rental. This includes compensation for extra fuel or mileage.

Getaround provides comprehensive insurance for all trips, ensuring that users are automatically covered as soon as their trip begins. This replaces your own car insurance as soon as the Getaround trip starts.

You set the daily rate so you control the income you earn.

What’s Behind the Car-Renting Trend

The car-renting trend has gained significant momentum in recent years, driven by the growing sharing economy and the gig economy. With the rise of car-sharing platforms like Turo, Getaround, and Avail, car owners can now monetize their underutilized assets and earn extra money. This trend is particularly popular in urban areas where public transportation is readily available, and car ownership is less necessary. The convenience and flexibility offered by car-sharing platforms have made it an attractive option for those looking to make money renting out their cars.

Benefits and Risks of Renting Your Car Out

Renting out your car can be a lucrative way to earn extra cash, but it’s essential to weigh the benefits and risks involved. On the one hand, car-sharing platforms provide a guaranteed income stream, allowing car owners to earn passive income. Additionally, these platforms often offer insurance coverage, which can provide peace of mind for car owners. On the other hand, there are risks associated with renting out your car, such as potential damage or theft. Car owners must also consider the impact on their personal finance and car insurance premiums.

What You Need to Know About Renting Your Car

There are some best practices for renting out your car. If you know and follow these, it may help protect you from vehicle damage and unforeseen expenses.

If you are leasing your car or have a loan on it, you’ll need to check that your contract allows you to rent out the car. It may not be permissible.

If you’re on one of the car sharing platforms, ensure you read all the rules. For example, Turo requires exclusivity on your vehicle.

You’ll also need to establish rules, like limited mileage or whether you’ll allow smoking in your car.

Preparing Your Car for Rental

Before renting out your car, it’s crucial to prepare it for the rental market. This includes ensuring that your car meets the eligibility and requirements set by the car-sharing platform.

Eligibility and Requirements

Car-sharing platforms have specific eligibility and requirements for cars to be listed on their platforms. These requirements may include:

• Age and mileage restrictions

• Vehicle type and condition

• Insurance coverage and liability

• Maintenance and safety standards

Car owners must ensure that their vehicle meets these requirements before listing it on a car-sharing platform.

Car Insurance and Liability

Car insurance and liability are critical considerations when renting out your car. Car-sharing platforms often provide insurance coverage for the rental period, but car owners must also consider their personal insurance policy and liability. It’s essential to understand the terms and conditions of the insurance policy and to ensure that you have adequate coverage in case of an accident or damage.

By understanding the benefits and risks of renting out your car and preparing your vehicle for the rental market, car owners can make informed decisions and maximize their earning potential.