Every day their seems to be a new company (Turo & Uber) or service being introduced to the marketplace that’s part of our increasing demand for a more sharing economy. If you have extra resources that aren’t being used you might as well get some money for them. For example, have you ever wondered what it costs to operate a vehicle for a year? Well, it’s estimated that the average annual cost of running a 2013 Toyota Camry, 18,000 kilometers a year, with the cost of gas set to $1.23/liter, with regular maintenance and repair, you’re looking at $10,456 a year. That’s a lot of money in one year!
To take it one step further, the average Canadian only uses their vehicle an estimated 10 hours per week according to Statistics Canada, which leaves your vehicle parked for 94% of the year. At this usage, and the annual cost to operate a vehicle, you’re looking at an hourly operating cost of $20.11 – Math.
I’m not sure about you, but I’m seriously starting to rethink the idea of vehicle ownership. I already knew that owning a vehicle was a huge money pit, but I’ve never actually sat down a gone over the numbers before. Suddenly I’m starting to realize why the sharing economy has started to take off, to help you retain a bit of that lost money from expenses.
In steps Turo. Who are they?
Founded in 2009 and headquartered in San Francisco, Turo is a car rental marketplace where people can rent any car they want, wherever they want it, from a vibrant community of car owners. You can choose from a totally unique selection of nearby cars, while car owners earn extra money and help fuel their adventures. Whether it’s an F-150 truck to help out on moving day, a Tesla for a luxurious weekend away, or a classic Volkswagon bus for a picture-perfect road trip, you rent the car and own the adventure.
How does it work?
List your car at the Turo website. It’s free to register and you set the pricing and availability. Once listed, your car can be viewed by a community of Turo renters. When someone chooses to rent your vehicle, a request will be sent to you for approval. You can then coordinate when and where to meet the renter for vehicle drop-off and to get the rental period underway. Please carefully read Turo’s Terms of Service, as well as all other relevant information about Turo.
What about the insurance?
Gaps in insurance coverage is always a big concern of ours with the sharing economy services. If you’re using your vehicle or home in a manner that wasn’t disclosed at the inception of the policy, you could be left without proper insurance coverage. Personal lines insurance policies aren’t typically issued with the intention of sharing your possessions. This was the big issue for the Uber product, as written about in our blog post: Insurance Risks For Uber.
As a Turo renter or vehicle owner, you can relax knowing that you’re properly covered. Turo has partnered with Intact Insurance, one of HMS Insurance’s offered companies, to provide a comprehensive commercial auto policy. The policy is triggered when the vehicle is being delivered to the renter and during the rental period. When the vehicle is not being delivered or rented, you’re protected as usual, under your Intact personal auto insurance policy. If you plan to participate in the Turo car rental program, you must inform your insurance broker. Once we receive your notice that you’re renting the vehicle through Turo, we notify Intact and the make a note on your policy, all done at no extra charge to you.
For more information, please see Intact’s Frequently Asked Questions, or contact your HMS broker.