I've been reading about companies that will allow you to rent your car out to others. Think of it as an Airbnb for your car. Like everything new, it sounds like a great idea. The companies in this business promise easy money for people. The only catch is that you're trusting your vehicle to complete strangers. While companies state they protect you and your vehicle with their insurance, it doesn't always work out that way.
Andrew J. here in South Florida learned the hard way that renting out your car to strangers can cause huge financial problems. Andrew rented out his vehicle through an app that promised to protect him with a $1 million insurance policy. Let's just say that didn't work out!
Here are the details. Andrew rented out his vehicle to an approved renter through the rental company's app. The renter, named Junior, then loaned the rental car out to his cousin Bubba. Bubba then loaned the car to a guy he knew as Sucky (in case you're wondering, I didn't make this up – my source is WSVN-TV news). It might not come as a surprise that Sucky cannot be found. And neither can Andrew's Lexus!
The car rental company has told Andrew that their $1 million policy does not cover this theft because there was an error with the check-in. Andrew states that the app had Junior listed as the driver, the rental company disputes this. Andrew's personal auto insurance claim was denied because his Lexus was being used as a commercial vehicle. The bottom line is that Andrew still owes $29,000 on his missing Lexus. He did earn $79 for renting it out though.
Let the big, well-funded, car rental companies risk their money on the roads of South Florida. Even if your car doesn't get stolen, drivers make mistakes. Do you really want to drive to work in a car that recently was driven up a curb or through a fountain? Don't risk your personal financial future and your credit rating on a get-rich-quick app. There's no such thing as easy money!