Peer-to-Peer Car Sharing Service and My Auto Insurance Policy

Michigan Insurance Agent Kim Gibas

Written by Kimberly Gibas CIC, CAWC

If you’re thinking about renting your car through a P2P car sharing program like Turo or Getaround, and believe that your current insurance policy will cover the car, think again. Most personal auto policies are now being written to specifically exclude peer car-sharing networks. Whether you are the one providing the rental or if you are the one renting.

You will need to check your own policy, as each carrier has their own terms and conditions, but many personal and business auto insurance companies have added language excluding coverage for those using their vehicles as P2P rentals. Ex

Exclusionary language examples for Liability and Physical Damage: We do not provide Liability Coverage for any “insured” for damage to an “auto” as a result of an “auto” accident occurring in Michigan. For the ownership, maintenance or use of” your covered auto” while:

  • Enrolled program agreement; and in a personal vehicle sharing program under the terms of a written agreement; and
  • Being used in connection with such vehicle sharing program other by anyone other than you or any “family member”

Below is an example of the exclusions that would be on a policy:


We will not pay for:

  1. Loss to “your covered auto” or any “non-owned auto” which occurs while it is being used as a public or livery conveyance.

Frequently Asked Questions

What happens if my car is involved in an accident while being used as a P2P rental?

This is considered self-insurance- meaning you will be personally responsible for the repairs and damage caused by the accident- if you didn’t purchase the coverage through P2P car company. Also, if you neglect to notify your insurance carrier that you’re using your vehicle as a rental, you’re not only at risk of having your claim denied, but your policy may also be cancelled, which will make it more difficult to find replacement coverage, if you can at all.

If I rent a car through a P2P car sharing service, am I covered under my own insurance?

Not likely. To be sure, you will need to check your auto policy and/or call your Agent to see if you have coverage. P2P car rental is not the same as rental car coverage and may not extend coverage. 

Should I get commercial insurance if I participate in P2P car sharing services?

This is a conversation you should have with your insurance agent, preferably before you participate with a P2P car sharing service.

Key take away

As with almost every word of advice we give: it is important you speak with your independent agent regarding your situation prior to making any business decisions. This will not only help give yourself peace of mind regarding your business decision but it will ensure proper coverage in the event of a loss.