While listening to NPR yesterday, I learned more and more people are making extra money by letting complete strangers (Yikes!) drive their cars for a fee. The people who are renting out their cars are doing so through car-sharing start-ups.
A college age woman told NPR she makes an extra $150 a month. That’s $1,800 a year. Nice! Before you start making money off your ride, here are some things you need to know to protect yourself and your wheels.
- Before handing over your keys, check with the company to see if it provides commercial auto coverage. This type of policy provides coverage to repair or replace a vehicle damaged in an accident and it will pay the claims of any third-party injured in the accident.
- Ask the company how they evaluate who can rent your car. Do they make sure drivers have a valid license? Do they check their driving record?
- Make note of all dents before and after the car is rented out and bring them to the attention of the start-up company.
- If the company doesn’t offer insurance, make sure you know what your insurance policy covers. Many drivers just have liability insurance and it will only cover the damages made to the other car.
- Check that your policy is valid when someone else drives your car. Note, that many personal policies will not cover your car if you’re not the driver.
I don’t have a car. If I did and it was just parked, I’d sell it. By renting out your car, you end up taking on too many risks. I mean, what if you end up losing money instead of making extra cash? I’d be too paranoid. Would you let strangers drive your car so you could make extra cash? If renting your ride for cash is not for you, then check out my post about other ways to make more money.