Car sharing has been rapidly increasing in popularity over the past few years, so much so that the number of car-sharing users is expected to reach 63.15 million by 2027. It makes sense as an increasing number of people are now concerned about the environmental damage caused by the sheer number of cars on the road. If you live in a metro area, it’s not uncommon to see shared cars making the rounds for practical reasons.
- It allows you to dodge crowded highways.
- You can avoid the stress of owning and maintaining your own car.
- It is less restrictive than typical car rentals.
- Car owners have to drive a lot less as most trips are within the city radius.
While a car-sharing service can be a fantastic option for many, a few things need reassurance. From insurance for car sharing to know-how of logistics for safe, hassle-free travel, we’ve got you covered.
Car Sharing – How Does It Work
Car sharing is essentially a subscription-based rental service, except a single vehicle is shared among multiple individuals. In comparison to a traditional rental car service, where you have to return the vehicle within a fixed time, shared cars promise more flexibility and convenience.
The members can reserve a particular vehicle by the hour or day, depending on their needs. Unlike a traditional car rental service, car sharing is an entirely self-service model where you pick and return the car after you’re done, and there isn’t any time-bound contract. The car keys generally stay inside, and the vehicle is unlocked using a membership card or a dedicated mobile app.
One needs to be at least 21 years old with a valid driver’s license along with a good driving record to stand eligible for car-sharing.
What Makes Car Sharing The Perfect Option For Many
Car sharing is definitely a workable solution for many. However, not everyone’s lifestyle or needs approve of it.
Car sharing might not be the best option if :
- You already own a car and have no plans to sell it.
- You drive very little.
- You prefer walking, biking, or taking public transport.
- You don’t live in a metropolitan city.
- You aren’t really good at driving.
On the flip side, car sharing can work for you if:
- You don’t own a car yet.
- You are a frequent traveler.
- You have to fly to cities for work.
- Your company pays towards your fuel expenses for travel.
- You love a road trip any day.
- You live in a metropolitan area.
- You are a good driver.
Car Sharing Insurance-Know About Your Coverage
Before you say yes to car sharing, you must comprehensively understand the insurance options offered by a car-sharing rental company. Here are a few basics of coverage to mull over.
- Liability – A typical car share insurance policy promises up to $1 million in liability coverage, including the driver who rents the vehicle and the owner. It is advised that you check the details of the time period to know when the coverage becomes active.
- Comprehensive and Collision Coverage: This coverage protects the car owner against theft and damage, except for daily wear and tear and pre-existing dents and scratches. Comprehensive collision coverage is offered to all car-sharing members, although the amount can vary from one company to another. Renters also have the option to purchase supplemental comprehensive policies if need be.
- Uninsured or Underinsured Motorist Coverage – The car-sharing company shall include motorist coverage within the policy, depending on your state. Usually, the amount for motorist coverage stays within the minimum required by the state.
- Renter Personal Injury Protection – Similar to uninsured motorist coverage, the personal injury protection amount does not exceed the legal requirements set by the state.
Save Money, Protect the Environment, And Travel Stress-Free
The Environmental Protection Agency reports that American households using a car-sharing service save at least $154 each month. Some even save over $430 a month. If you run the math, it’s more profitable than owning a car. (The average cost of a new vehicle is nearly $40,000.)
On the environment front, it checks all boxes. From less traffic to reduced carbon emissions, car sharing is a befitting solution to lessen ecological damage. Besides, it also promises absolute peace of mind for people who don’t own a car yet and generally find driving a vehicle themselves risky.
