When you rent your car out through Car Next Door, it is covered for damage, theft and third party loss whenever it’s with a borrower. If you’re on our Instant Keys sharing plan, you and up to 5 drivers you nominate are also covered by our policy so you can cancel your existing insurance.
If your car is damaged by a borrower
- If your car is damaged during a borrower's booking, it’s covered by our insurance and they are liable for the cost of repair, not you.
- We will organise the repairs, manage the claim with the insurer and get your car back on the road as soon as possible.
- If you have a preferred repairer we can use yours, provided they can give a reasonable quote. Otherwise, we have our own specialist repairers.
- We'll pay you $25 a day while it is in for repairs, for up to 28 days (provided that our chosen repairers are doing the work).
Make sure that you check your car regularly and report any damage. See Checking your car after bookings and reporting damage
Note: The insurance does not cover general wear and tear. Also see: Understanding the difference between damage and minor wear and tear
If your car is damaged at other times
Owner at fault
- If your car is damaged while you are using it yourself, while one of your additional drivers is using it, or while it's parked outside of a booking, then you will be responsible for paying for the repairs or replacement up to the amount of your (or your additional driver's) Damage Cover Liability amount.
- Your DCL amount is $500 if you are responsible for damage, or between $500 and $3000 if one of your additional drivers is responsible for damage (depending on their age and whether they have a full or restricted licence - read more about DCL amounts for additional drivers)
- The insurance will cover the rest (subject to the terms of cover that are set out in the Membership Agreement and Owner Supplement).
- If another driver was at fault and you can provide full details of the other vehicle and driver, then you will not have to pay anything.
- We will manage the claim with the insurer and help get your car back on the road as soon as possible.
- As with any insurance policy though, there are some exclusions from cover. You are not covered if you (or one of your additional drivers) commit a serious breach of the Member Agreement (for example driving while intoxicated). For a full list of exclusions see the Member Agreement.
Hail, fire, theft
- The insurance also covers loss or damage due to fire, flood, hail or theft, or damage incurred while parked between bookings.
- If any of these scenarios occur while you have possession of the car (anytime it is not booked by another member), you just pay the relevant DCL amount and the insurer will cover the rest.
Rego, CTP and Roadworthy
- You still handle your own rego, CTP (Compulsory Third Party) and roadworthy. See: What's The Difference Between CTP Insurance & The Damage Cover Provided Through Car Next Door's Fleet Policy?
Will sharing my car affect my current insurance?
Every insurer has different policies, so you should check your PDS or get in touch with your insurer to find out how sharing your car could affect your current comprehensive or third party insurance.
There are very few incidents of damage to cars, but in the unlikely event that your car is damaged, it's insured for its market value under our fleet insurance policy.
Looking at the data, only 1 in every 1,400 trips results in significant damage (i.e. where repairs cost over $3,000). This includes incidents where a third party was at fault. On average you would need to have a car on Car Next Door for close to 20 years for it to experience a major accident.
As for the smaller stuff (small scrapes and scratches) - this sits at around 1 in every 120 trips, so the average owner would experience one minor damage incident in 2 years.
Instances of disputed damage are very rare, however when a car is parked on the street and shared through our platform there may occasionally be cases of minor damage when it is genuinely difficult to work out who is responsible. If there is a dispute about whether damage was caused during a Borrower's booking, then the Borrower is responsible unless they can prove that the damage occurred before or after their booking.
We require Borrowers to take photos at the beginning and end of their booking to protect themselves in the event of a dispute.
The insurance covers damage, and does not cover wear and tear. Wear and tear includes things like scuffing of paintwork and interiors, wear to tyres, etc. You can find a detailed description of 'wear and tear' in the Damage Policy. See also this FAQ explaining the difference between damage and wear and tear.
Your car's coverage under our insurance policy is laid out in our policy documents so it's important you read and understand these:
- Damage Policy - our policy for definitions of damage and how we handle it.
- Membership Agreement - guidelines and rules for being a Car Next Door member.
- Owner Supplement - owner-specific rules and guidelines.
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