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Auto Insurers Mad That People Are Renting Out Their Cars

Many people are trying to find ways to bring in a little extra income. Some people have used cars that they no longer use any more. One option that some people have been exploring is to rent out these vehicles to drivers and charge them by the hour for their usage.

Many people need a vehicle to run an errand such as pick up a large purchase, get groceries, do their laundry, or drop and pick up their kids from school. Rental cars can be expensive to rent on a daily basis so it is much more cost effective for drivers to be able to rent a car by the hour.

One issue that is coming up is that people who do this are actually putting themselves at risk. This is due to the fact that they are violating the terms of their car insurance policy. For example, if a driver that has rented takes your car and gets involved in an automobile accident then the insurance claim might not be approved. This is because the driver was not a family member or member of the household so they are not covered by the insurance policy that is in place.

If your insurance company finds out that you are renting out your car to other drivers then they have the right to cancel your policy immediately. This would end up costing you a lot of money. It is very hard to get cheap car insurance coverage once your policy has been canceled by another insurance company.

It is not really worth the headaches and the possible consequences to rent out a vehicle. It is very expensive to insure your car as a rental car and you would have to pay taxes on all of the money that you make from the transaction. It is important for drivers to understand this.

There are companies that set up drivers with cars with people who need to rent them. Just because a company handles this, it does not mean that your auto insurance company is all for the idea. This is due to the fact that drivers are unknowingly increasing their risk to their insurer. If a car is driven more miles and has different drivers using it then accidents are more likely to occur.

Every driver has a different driving record so a driver might be borrowing your car that has been involved in a lot of accidents which is why they need to rent a vehicle in the first place. Just because a person has a driver’s license, it does not mean that they are a great driver. More than 10 million accidents happen in the United States each year and most of them were actually involving good drivers who were hit by distracted or bad drivers.

You never know when your car might be involved in an accident. The auto insurance company is well within their rights to sue you for renting out a vehicle and not having the vehicle insured for that purpose. Yes, times are tough right now but people need to do their homework when it comes to money making ventures. You and the people in your immediate household that you want to insure should be the only ones who have access to your vehicles at all times.