legal, insuranceI was taking a look at this website’s How It Works page recently and was a bit puzzled by this particular section:
You’re covered by our insurance, as well as 24-hour roadside assistance, so enjoy your trip knowing you’re protected.
I was wondering how does this insurance scheme work given that the company does not own the cars but rather they are provided by the users of the website. Do car providers sign for some sort of insurance when they register the cars? Can anyone provide more details on how you think this works?
The company can negotiate directly with an insurer to insure their activities. In that case, peer-to-peer rental.
It’s possible but expensive, which is why most startups try to find some way for you to “bring your own insurance”. It’s expensive because the insurance company has a really hard time evaluating what kind of drivers you’ll be getting and what kind of cars you’ll be renting. The worst scenario of course is renting very expensive cars to reckless drivers…
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