Can Car Sharing Cause Insurance Problems?

Hi Moneyguru,

Could sharing my car through car sharing clubs or apps put my car insurance cover in Jeopardy? I am a big car sharing fan and big on the environment, plus the money I can earn renting out my car is nice. I share my car out often, but I am a bit worried that maybe my insurance won’t pay if someone has an accident with my car while renting it.

Is car sharing covered by mandatory Swiss car insurance? What about supplementary insurance for collisions and damage to my car?

Hi there,

You have good reason to be concerned about the effect of car sharing on your insurance situation. Swiss insurance providers typically exclude coverage for cars which are lent out in exchange for a fee (which is the normally the case with car sharing) in liability car insurance policies.

This means that if your car is involved in an accident while being rented out to another driver and found to be at fault, you could be held liable to pay for damages out of your own pocket. In the worst case, liability for damages or bodily injury to third parties can come to millions of Swiss francs.

If the renter has personal liability insurance, their third-party liability for damages to third parties while using a vehicle which they do not own may be covered, in which case this coverage is secondary to liability car insurance. However, some Swiss personal liability insurance policies specifically exclude rented vehicles from coverage.

Note: With very few exceptions, Swiss personal liability insurance policies exclude liability for damages to rented vehicles from their "borrowed vehicle damages" riders. This means that damages to your car for which the renter is at fault are not normally covered by their insurance. You will have to claim compensation directly from the renter.

Some Swiss insurance providers (including Elvia, Axa and Generali) let you add coverage for car sharing to your policy as an optional rider. Some (like Vaudoise) include coverage for damages inflicted by the policyholder on a vehicle belonging to a member of their own household under some conditions. Ask your insurance provider if they offer this rider, and if they can add it to your existing policy. Refraining from sharing your car for a fee until you are 100% sure that your car is insured against liability claims is recommended.

If you share your car using major car sharing platforms, either you or the renter will generally be expected to take out a special insurance policy which specifically covers car sharing. This insurance generally extends your compulsory liability car insurance to cover liability for renters and typically adds collision and comprehensive insurance coverage. It may also cover losses of claim-free discounts affecting your car insurance when an accident by a renter results in your having to make an insurance claim.

Best regards from Moneyguru

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