Short answer:

All Car Next Door bookings include damage cover provided to Borrowers by Mobility Mutual. You’ll need to arrange your own insurance or get Between-Booking Cover from Mobility Mutual (for eligible cars only) to cover your car outside of bookings.

Damage cover during bookings

Mobility Mutual damage cover includes cover for:

  • Damage
  • Theft
  • Third party loss
  • Hail, flood and fire

If your car is damaged or lost during a booking, the borrower will be liable for the cost of repair or replacement. 

The borrower can make a claim for cover from Mobility Mutual. We’ll charge them their excess and organise the repairs.

If the borrower’s claim for cover is denied, they’ll be liable for the full cost of repairs. 

If a Borrower doesn’t pay what they owe, you won’t be out of pocket. You’ll be protected by our Owner Guarantee (terms and conditions apply).

Borrowers are not responsible for wear and tear (as defined in the Damage Policy), and the Owner Guarantee doesn’t cover wear and tear.

Neither Mobility Mutual damage cover nor the Owner Guarantee cover damage to any accessories or modifications that weren’t supplied by the manufacturer.

Borrowers are responsible for the reasonable cost of repairing damage, which may include the use of second-hand or non-Original Equipment Manufacturer parts.

If your car is a total loss, you’ll be paid its market value at the time the loss occurs.

Damage cover outside of bookings

Mobility Mutual’s Trip Cover only applies during Car Next Door bookings. If you’d like cover for your car outside of bookings, you’ll need to arrange that separately. If your car is dedicated to sharing and you drive it less than 1,000 km a year, you can list it on the Instant Keys Plus+ sharing plan. If you use it for your own personal transport, you’ll need to get comprehensive insurance that’s car-sharing compatible.

Every insurer has its own policies, so contact your insurer or check your PDS to see if sharing your car will impact on your current insurance.

These other major Australian insurers have confirmed that they’ll cover cars that are also rented out through Car Next Door, without any additional premium payable:

  • AAMI
  • APIA
  • GIO
  • NRMA
  • RACV
  • Suncorp
  • SGIO
  • SGIC

When requesting a policy quote, mention that you primarily use your car for personal use and occasionally share it on a platform called Car Next Door.

If the consultant is unsure of cover, ask them to search their internal knowledge base for "car sharing" or "Car Next Door".

Most insurers have updated their internal information, but the consultant may not be across the policy update yet. If they tell you that you can't share your car, ask them to search for the following reference in their internal knowledge base:

  • APIA - Vehicle Use. KM1010840
  • AAMI, Suncorp, GIO - KM1014540 - Vehicle Use Section - Protect code P and same code P for car sharing scheme. 
  • NRMA, SGIO or SGIC: KM 1175909
  • RACV: Type in 'ride sharing cover' - says any driver is covered if the car sharing is occasional.

In addition, Allianz offers cover for car-sharers, however it is under their Rideshare insurance product and carries an additional annual premium. 

What happens if your car is damaged during a booking

Borrowers are required to take photos at the start and end of each trip to prove that no damage occurred while they had your car. These photos help us determine when damage happened and who is responsible.

If you notice new damage that you think happened during a booking, report it to us as soon as possible. 

  1. We’ll check your borrowers’ photos to determine who is responsible and charge them their Trip Cover excess
  2. We’ll arrange the repairs on behalf of Mobility Mutual – we can use your preferred repairer or one of our specialist repairers 
  3. We’ll charge the Borrower $25 for each day your car was unavailable to you due to the damage and repairs, up to 28 days (provided our chosen repairers are doing the work)

How the damage cover works

Damage cover for Car Next Door trips is provided by Mobility Mutual, a group risk management program that is administered by Car Next Door.

When a borrower makes a booking, they become a member of Mobility Mutual. The cost of their booking includes a contribution towards the mutual fund and this is pooled with contributions from other Car Next Door members. If a car is damaged during a booking, the borrower pays their excess and the pooled funds cover any extra costs.

How Mobility Mutual protects your car during bookings

Whenever a Borrower has your car, they’re required to take out Trip Cover from Mobility Mutual to provide them with cover for damage or loss to your car or third party property.

If the Borrower is responsible for damage or loss to your car, they’ll make a claim and Mobility Mutual will pay for the repair or replacement in accordance with the Member Agreement.

If the Borrower is in breach of the terms of cover and their claim is rejected, this doesn’t affect your payment. Car Next Door will pay you under the Owner Guarantee and seek to recover the debt from the Borrower.

Instant Keys Plus+ and legacy $60 sharing plans

Some cars may be on the Instant Keys Plus+ plan (or legacy $60/month plan), which also includes cover outside of Borrower bookings. Find out if your car is eligible for Instant Keys Plus+.

What’s the difference between mutual risk management and insurance?

With a discretionary mutual fund (“mutual”), members pool funds to manage risk. 

It’s a way for a group of people with a common purpose - like our car-sharing community - to manage risks in the best way for their community.

A mutual provides discretionary cover.  Unlike an insurance contract, which pays out in very specific prescribed circumstances, the unique feature of mutual risk products that set them apart from insurance is discretion.

An insurance policy promises an indemnity. A mutual risk product promises a claim for loss will be considered. The power of discretion rests with Mobility Mutual’s board. This discretion provides the board with the flexibility to respond in situations where an insurance policy cannot.

There is also an ‘excess of loss’ insurance policy that protects the mutual if there were more losses to pay out than were covered by the mutual fund.

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