The Unexpected Reason Using This 'Airbnb For Cars' App Could Be A Wildly Expensive Mistake

The sharing economy, for good or ill, is inseparable from modern commercial life. Pioneered by Airbnb in the accommodation sector, and Uber in transportation, shared-goods-and-services models have appeared in a broad range of industries. There are apps for renting out dogs, using communal e-bikes, sharing food to mitigate waste, and leasing storage and parking spaces in other people's homes. So, it was only a matter of time before this model disrupted the car rental space, which can be notoriously pricey. In fact, customers often pay in excess of $100 a day for a standard vehicle before hidden costs and extras are tacked on. Never mind the fact that it costs more to rent a car at an airport, and that excessive charges for damaged rental vehicles are one of the most common scams unsuspecting travelers usually fall victim to.

Turo is one of the most popular car sharing apps today. An "Airbnb for cars," it bypasses rental companies and, instead, connects renters directly with guest-rated cars and hosts through an app. This also suggests you won't be lumped with excess insurance or damage protection costs. However, don't be lured into a false sense of security. In business, there is always fine print. 

The main mistake that users of Turo and similar apps make is assuming that their existing car insurance extends to car-sharing platforms, which isn't the case. To make matters worse, fraudulent claims are not uncommon on car-sharing apps. That said, to ensure you're covered in all eventualities, you'll likely need comprehensive damage waiver and third-party liability insurance — the second of which is mandatory in most states. 

Making sure you're fully covered requires due diligence. First of all, if you're insured through a credit card company or a private insurer, be sure to double-check the nuances of your policy before using an app like Turo. Also, bear in mind that insurance policies aren't one size fits all. Some don't apply to rental cars, and others require you to meet a laundry list of criteria. This includes things like being a minimum age, as well as having a clean record or proof that you've been driving for a number of years. Furthermore, some regulations only apply in certain states, while commercial use of a vehicle will require a different policy altogether. Ultimately, it's also a good idea to start exploring non-owner vehicle insurance options, catering specifically to people who often rent cars.

Beyond ensuring you're covered in case of an incident, there are some other basic items on your car rental checklist. First, read vehicle host reviews. Additionally, always take photos of any damages, and report said damages to Turo before driving the car. If a fraudulent claim is still leveled against you, companies like Consumer Rescue and Elliott Advocacy, two consumer advocacy organizations, can help you contest them. Alternatively, you can always just skip car rental hassles altogether and use this clever transportation app instead.