How can I rent my car to a friend?

My friend is visiting from out of town. I don't want them to pay for a rental car, but they have offered me some money to borrow my car. Can I rent my car to them?

Yes! You can rent your car to your friend, but your car insurance company would likely consider this borrowing or permissive use.
Even though your friend has offered you money to rent the car temporarily, insurance companies only care about whether you have agreed to let them do so. If so, your insurance should cover your friend.
However, you should decide beforehand on how you would handle the situation if you friend gets into an accident.
If you’re feeling ambitious, draw up a contract or agreement with your friend detailing what happens in the event of an accident. The contract could require them to submit a claim with their insurance or pay out of pocket for the damage.
Before they start driving your car, check with your insurance. In most cases, your friend would be covered, even if you’ve agreed they won’t use your insurance for a claim, but you want to be sure.
You may also want to look at your coverage levels when checking in with your insurance. If you decide you want to change or update them, you can get a quote from your insurance or use Jerry. Jerry is an app that gathers quotes from the top insurance providers to find you the best rate.
Emily Maracle
Answered on Oct 25, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.

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