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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? Will they be covered by my insurance?
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Yes! You can rent your car to your friend—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 drive the vehicle. If so, your insurance should cover your friend. But just to be safe, you should probably check with your insurance company first.
You should also decide beforehand how you would handle the situation if your friend
gets into an accident
. For instance, you might 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.If all of that seems like too much trouble, you can also use a car rental app like Turo to make the process simpler. They provide their own liability insurance, but you can purchase additional
insurance from Turo
to protect your vehicle as well.View full answer
- Gregory R.
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