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4 facts about car sharing

Published on September 6, 2022


The sharing market has become a global trend that has been growing more than ever in Quebec. Airbnb, Uber and Turo, to name just a few, are examples of companies that are part of this phenomenon. Car sharing, the automotive branch of the sharing market, has seen strong growth in the last few years.

Thinking of sharing your vehicle? The Unique General Insurance team has a few facts you should know before you jump into car sharing that will put you firmly in the driver’s seat.

Before we go any further... 

What is car sharing?

Car sharing, also known as self-service car sharing, allows you to borrow a car on an as-needed basis. This arrangement means there are less cars on the road, so it’s environmentally friendly in addition to being more practical and economical. 

1. Your auto insurance does not cover your vehicle while it is being shared

The insurance industry is modernizing and adapting to the car sharing trend. It’s become necessary because users on sharing platforms expose themselves to the risk of damage and legal problems. Renting out your car or driving passengers in exchange for money are commercial activities that are not typically covered under auto insurance policies. We therefore recommend consulting someone who is a qualified professional in the auto insurance industry

2. You will need some advice, to stay on the right track

Before using your vehicle for commercial purposes, contact your insurance company. Discuss coverage options that are available to you: 

  • Damage caused to your vehicle
  • Civil liability 

To make sure you’re fully covered, take this step before you make your car available. And avoid nasty surprises... 

3. Does the car sharing platform already provide insurance coverage?

Make sure you verify the coverage provided by the platform which may, at times, be adequate. Turo, for example, allows individuals to rent out their vehicles on a daily, weekly or monthly basis. And through agreements signed with some insurers such as L’Unique, safe car sharing becomes simple and accessible. 

When you rent out your car, it may be covered by commercial insurance. It could even include roadside assistance with each rental period. Be sure to discuss it with professionals and rest easy knowing you have the right coverage! 

4. Who needs legal troubles?

The services being offered must be legal. Some services are legally offered only if you hold the required authorizations or permits. If you have any doubts, ask a representative of your insurance company. An ounce of prevention is worth a pound of cure. 

Insurance brokers are there to help you.

Call on these professionals for guidance on all insurance- related matters. They will be able to answer all your questions.