If you’re thinking about making some extra cash by renting out your car on a platform like Turo or Getaround, one of the first questions you might ask is: Does my regular car insurance cover peer-to-peer rentals?
The short answer is no. In most cases, your personal car insurance policy does not cover your car when it’s being rented out through a peer-to-peer car-sharing service. In fact, in some states, your insurer may even deny you coverage if they find out you’re renting your car.
But don’t worry — that doesn’t mean you’re left unprotected. Peer-to-peer rental platforms typically provide their own insurance options to protect both car owners (hosts) and renters. Let’s break it all down.
What Is Peer-to-Peer Car Insurance?
When you rent out your car through a peer-to-peer service, you’ll usually need to purchase coverage from the platform itself. This is often called peer-to-peer car insurance.
Coverage levels vary by company, but most include:
- Liability coverage: Protects you if someone makes a claim against you related to an accident involving your car while it’s rented out.
- Repair reimbursement: Helps cover damages if the renter returns your car with eligible damage.
- Cleaning reimbursement: Covers professional cleaning if your car comes back in a mess.
- Roadside assistance: Helps if your car breaks down while being rented.
Some platforms even offer traditional coverages like comprehensive, collision, uninsured motorist protection, or medical payments.
👉 Important: You’ll still need to maintain your own personal auto insurance policy. These peer-to-peer coverages don’t replace your regular insurance — they work alongside it.
For more details, you can check out Turo’s protection plans to see exactly what’s covered.
How Insurance Works With Peer-to-Peer Rentals
For Car Owners (Hosts)
- Keep your personal policy: Your own insurance won’t cover rentals, but you still need it.
- Select coverage from the platform: When you list your car, you’ll pick a protection plan offered by the peer-to-peer rental service.
- Notify your insurer: It’s a smart idea to tell your personal auto insurance company that you plan to rent out your car. Some insurers might drop your coverage in certain states if they don’t allow this.
💡 Tip: If your insurance company drops you, don’t panic. You can shop around and compare policies using tools like The Zebra or Policygenius.
For Car Renters
If you’re the one renting a car:
- Your personal insurance may extend: In many cases, your liability, collision, and comprehensive coverage will follow you when you rent a peer-to-peer car.
- Option for temporary insurance: If you don’t have car insurance (or want extra protection), you can buy temporary coverage through the rental platform, similar to traditional rental car insurance.
This makes renting more flexible — whether you’re fully insured already or just need coverage for a weekend trip.
For an in-depth guide, check out How Car Insurance Works on NerdWallet.
Can You Rent Out Your Car Without Insurance?
Nope — you can’t list your car without insurance.
At a minimum, you’ll need a personal auto insurance policy that meets your state’s minimum coverage requirements. On top of that, the peer-to-peer platform will require you to select one of its protection plans, which includes liability coverage at the very least.
Some companies may automatically enroll you in a default plan, while others let you choose.
👉 If you plan on renting out multiple cars as a side business, you might consider commercial car insurance instead. While it’s not practical for everyone, it could save money in the long run if you’re running multiple rentals.
Key Takeaways
- Your personal car insurance won’t cover peer-to-peer rentals.
- Peer-to-peer platforms provide their own protection plans for both hosts and renters.
- Car owners need both personal and peer-to-peer coverage.
- Renters can often rely on their personal policy or buy temporary coverage.
- No insurance = no rental. Platforms require at least the state minimum coverage.
So, if you’re planning to rent out your car on Turo, Getaround, or a similar platform, make sure you understand exactly what’s covered — and what isn’t.
Final Thoughts
Peer-to-peer car sharing is a great way to earn extra income or get access to unique vehicles when traveling, but insurance is the backbone that makes it safe for both sides.
Before you jump in, review your personal auto policy, compare coverage options from the platform, and don’t be afraid to shop around if your insurer isn’t on board.
That way, you’ll have peace of mind knowing you’re protected — whether you’re handing over your keys or getting behind the wheel.
