Better Consider the Cost Before Signing Up with an Auto Pool Agency

In the past few years companies such as Turo and Getaround have opened up a hew market for auto owners to take advantage of. These companies act as agencies for car owners who want to rent out their unused or seldom used autos to earn extra income. Both companies are hesitant to release actual numbers, but each of them does state that they have thousands of autos listed in their respective car pools. Turo tries to entice owners by advertising the fact that they can "put a dent in their monthly payments" even covering those costs by renting the vehicle as little as nine times a year! But what affect do these ventures have on the cost of car insurance in Salt Lake City and around the country?

When these types of companies began forming around 2012, the majority of insurance companies expressed skepticism regarding owners renting out their cars to strangers. Originally these businesses operated without legislation, especially Turo which was originally called Relay Rides but changed its name in 2015. At first insurance companies had the right to drop your insurance if you rented out your car, although Oregon, California, and Washington were the first states to make laws which prevented insurance companies from doing so. The reason for this legislation was to protect naive owners such as Liz Fong-Jones, whose car was the cause of an accident which injured four people and killed the renter.

Although the agencies provide liability insurance up to one million dollars, the lawsuit that followed the accident in which Ms Fong-Jones's car was involved in threatened to exceed that amount, though later all claims were settled for less. It was an insurance nightmare however, and could have been a personal one for Liz Fong-Jones as well. There have since been instances that have caused both car owners and insurance providers nightmares, and some states like New York have made it difficult for these companies to do business there, though Turo is up and running in Utah.

If you do decide to rent out your car with Turo or a similar company, there are some insurance issues you need to know about. When you rent a car from a traditional company like Avis, you can use their insurance or your own if it covers car rentals. With Turo it's a bit different. Turo actually provides three different plans for owners renting out their vehicles. All of the plans contain liability insurance and wear and tear, which covers scratches, dents and such blemishes that are three inches or less in diameter. Maintenance issues are another matter however, and if your car suffers engine failure due to a malfunctioning or old or worn part, you are responsible for repairs.

The Standard and Premium plans offered by Turo are different than the deductible plans offered by traditional insurance companies; in fact, they will cover repair costs up to $125,000 and you can take your car to the garage of your choice. A third party administrator initially assesses the value of your car; that information is then fed into a computer where specialized software compares your car to others like it and in use by the company, giving your auto a final value.

The coverage provided by these companies is quite fair, and renting your car can earn you extra money Knowing that it won't affect the cost of your auto insurance in Salt Lake City could make this a viable option if you are in need of extra income.

ASA Insurance provides excellent coverage for car and home insurance in the Salt Lake City area with the lowest rates to the English and Spanish communities. Affordable rates and superior service for all home, auto and business/commercial insurance needs.

Asa Insurance provides excellent coverage for auto insurance in the Salt Lake City area with the lowest rates to the English and Spanish communities. Affordable rates and superior service for all home, auto and business/commercial insurance needs.