ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

The Risks of Car Sharing for Renters and Owners

Updated on January 9, 2018
tamarawilhite profile image

Tamara Wilhite is a technical writer, industrial engineer, mother of two, and published sci-fi and horror author.

Introduction

Car sharing is increasing in popularity, with programs like Relay Rides and Zip Car becoming nation wide phenomena. A number of websites have popped up to help you share your car without becoming a taxi driver a la Uber or Lyft.

Car sharing promises an income stream to car owners, environmental benefits for users and financial savings for everyone. However, there are a number of risks that both car borrowers and car lenders are not taking fully into account.

When you offer your car on car sharing sites, there are a number of under-appreciated risks you are taking.
When you offer your car on car sharing sites, there are a number of under-appreciated risks you are taking. | Source

The Risks of Car Sharing for Borrowers

  1. The cost per hour for rending a car is sometimes higher than the rental car rate at national chains. The daily car rental rate is typically higher than the rental car rate from a national car rental chain.
  2. Mistreating a vehicle or leaving it a mess will hurt your reputation in the community, not just result in fines from the rental place.
  3. Rental cars at businesses have more flexible pick up times and drop off times. For example, a business is more likely to have someone available at 5 AM or 9 PM for a car pick up.
  4. Car sharing programs are still an evolving market, with local websites competing with large programs. A new car sharing service has a good chance of not being in existence in a year, whether bought out or absorbed into another program.
  5. Personal cars for rent are either underutilized or the owner is desperate to make the payments. In either case, these vehicles are less likely to be well maintained than a corporate rental car. Furthermore, if the vehicle does break down, the car’s owner is unlikely to pick you up and take you to your destination – though Hertz probably would. However, some car sharing programs like Zip Car do include roadside assistance.

The Risks of Car Sharing for Vehicle Owners

  1. Many auto insurers do not allow you to rent out your car. They are insuring you, and they may cover someone you lend the car to once in a while. However, most car insurance policies do not cover accidents when you are renting out your personal vehicle to someone else, whether as part of a car rental program or letting someone else take over the payments and drive it.
  2. If the borrower has the vehicle seized for DUI or carrying drugs in it, you’ll have a hard time getting it back. There has already been precedence in someone letting a person test drive a car getting the car impounded. As the owner, you’ll have to pay the impound fees to get it back. Police in many states have the right to keep and then sell at a profit the vehicles involved in drug crimes, even if the vehicle was not driven by its rightful owner.
  3. As a private individual, it is unlikely that you the car owner or the car sharing service have checked to see if the borrower is driving with a suspended license or under a mandate to only use a vehicle with an ignition interlock device. Renting your car then becomes a way to get around the court ordered limitations, and risks the impounding of your vehicle. Individuals generally don’t have the resources to screen potential renters except through reputations online.
  4. Red light tickets by traffic cameras are mailed to you, not the person who drove your car.
  5. Car seats and booster seats may be removed and put in the back when someone else is driving the vehicle. You cannot assume that they are correctly re-installed when the car is returned.
  6. The person driving the car will have to pay cash to get through a toll both, unless you have an RFID toll tag. If there is a toll tag, you’ll have to pay the tolls charged to your account. Unless you specify in the contract that the person has to pay the tolls they rack up, you’re stuck with the bill.
  7. Legally, you owe income taxes on the rental income from your vehicle.
  8. If the borrower loses the car, you’ll have problems finding it unless you have GPS or a built in locator.
  9. The borrower typically isn’t required to fill up the vehicle before returning it. The cost of the gas they used will offset the rental income you receive.

Comments

Submit a Comment
  • jabelufiroz profile image

    Firoz 

    8 years ago from India

    Good car rental tips. Voted up.

working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://corp.maven.io/privacy-policy

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)