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Airbnb for cars. Who’s liable after an accident?


The other day somebody called me and said, “I loaned my car to a fully insured driver and he caused an accident. Now the driver of the other car is suing me. Who pays the cost depends on how you loaned the car. Did you loan through an Airbnb for cars service? Or, did you loan the vehicle to a friend?

Anytime you end up in a questionable situation with insurance, your best bet is to be with one of the best insurance companies. By best, were not referring to companies with big advertising budgets. No, we’re referring to companies with a strong history of handling claims with no complaints. We list the best auto insurance companies and best homeowners insurance companies in every state. Just click the buttons below to find out the best insurance companies in your state.


If you’re considering an Airbnb for cars service, check with these companies to see if they offer coverage.

Did you use an Airbnb for cars service that includes insurance?

As an emerging market, Airbnb for cars services should provide all the necessary insurance to cover your vehicle in the event something happens. This would be typical in a new market to make it easier for car owners to embrace. However, Airbnb for cars is a rapidly evolving market. To make sure you’re properly protected by the Airbnb for cars service provider you select, you need to review the insurance policy, in detail. As with any emerging market, there may be shady offerings.

Loaning via Airbnb for Cars May be Better Than Loaning to a Friend

With vehicles the coverage typically follows the vehicle, not the driver. While there are circumstances where insurance for the driver you loaned your car to may accept responsibility, don’t assume this to be the case. Before lending your car, boat or motorcycle, consider the following:

  • Are you adequately insured to cover the risk? A lawsuit will likely be based on the estimated value of your assets, not the limits of the insurance policy. That means you need to have coverage protecting your assets.
  • Do you have a contract in place with the person borrowing your vehicle clearly stating they will cover any loss?
  • Just as importantly, are they capable of covering a loss? Their insurance company is not liable so it is highly unlikely they will be able to collect insurance money to aid you if you get sued.
  • If they do something that results in the vehicle getting impounded (e.g., reckless driving or driving while intoxicated) are you in a financial position to pay to get your vehicle back? If not, you will be without the car.

People often don’t realize when they say “I loaned my car” that they have trusted all of their financial assets (house, investments, vacation home, etc.) to the person who borrowed the car. Before loaning your car check with your insurer to make sure you have coverage adequately protecting you if there is a problem. It’s your money the person driving the car is risking, not theirs.

Do you have good quality insurance?

Find out how good your car insurance is with our free report. Get the Premium version to have their score on claims handling included. The claims handling score is a comparison of how the insurer performs compared to all other insurance companies. Click the button below to get a report card on your insurance.


Are you paying a fair price for your insurance?

Most insurance company ads talk about price. It seems the big insurers want everyone to think that price is all that matters. However, in our view, no matter how cheap the insurance, if they won’t pay a legitimate claim, it was a waste of money.

To bring transparency to insurance pricing, ValChoice built insurance calculators. Just click the button below to find out what’s a fair price for your insurance.

NOTE: ValChoice does not get paid by insurance companies for the service we provide grading their performance. No insurance companies, or people affiliated with insurance companies, have invested any money into ValChoice. This ensures our independent and unbiased view of the industry.

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