Glossary

Peer-to-peer car sharing

Renting your personal car to other people through an app such as Turo, where the platform's insurance usually replaces your own during trips.

Also called: P2P car sharing, car sharing, peer-to-peer car rental

Peer-to-peer car sharing lets car owners rent their vehicles to other people through an online platform; Turo and Getaround are well-known examples. The platform handles booking and payment and arranges insurance for the rental period.

Insurance is the main issue for owners. Most personal auto policies exclude coverage while your car is rented to others for a fee, so your own insurer typically will not pay for a crash during a trip, and an insurer that learns a car is being shared may decline to renew it. The platform's coverage is designed to fill that gap: it provides liability coverage while the car is shared and, depending on the protection plan the owner picks, physical damage coverage for the car, subject to a deductible. Many states have passed peer-to-peer car sharing laws that make the platform responsible for insurance during the sharing period and allow personal insurers to exclude it.

Before listing a car, read the platform's host protection plan, tell your insurer, and check whether your loan or lease allows sharing. Common gaps include wear and tear, lost income while the car is repaired, and personal items left inside. Owners who share several cars as a business may need commercial auto insurance. See Insurance for Turo and peer-to-peer car sharing and business use.

Last reviewed October 4, 2026

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Related terms

Business use A personal policy rating for a car driven as part of your job, such as visiting clients or job sites, which costs more than commute or pleasure use. Exclusion A provision in an insurance policy that removes specific people, vehicles, uses or causes of loss from coverage. Commercial auto insurance Insurance for vehicles used mainly for business, covering liability and physical damage risks that a personal auto policy excludes. Rideshare endorsement An add-on to a personal auto policy that covers a rideshare driver during gaps in the platform's insurance, especially while waiting for a request. Primary insurance The policy that must pay first when more than one could cover the same loss; other policies pay only after its limits are used up.

Related guides

Does car insurance follow the car or the driver? In most cases the car owner's insurance pays first and the driver's own policy is backup. How that works for borrowed cars, rentals, car sharing and injuries. Insurance for Turo and peer-to-peer car sharing How insurance works when you rent out your car on Turo or rent someone else's, why personal policies usually exclude it, and the gaps hosts and guests face.