What happens if your car is damaged during a Borrower's trip

Short answer:

All cars listed with Car Next Door are covered by our comprehensive insurance policy during Borrowers' bookings. If your car is damaged or lost during a Borrower’s booking, we'll collect their DCL and organise and pay for the repairs.

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 while a Borrower had your car, report it to us as soon as possible.

  1. We’ll check the photos your recent Borrowers took of your car at the start and end of their trips
  2. We’ll determine who is responsible for the damage and charge them for the estimated cost of repairs, up to their Damage Cover Liability (DCL) amount
  3. We’ll manage the claim with our insurer and arrange and pay for the repairs
  4. If you have a preferred repairer we can use them, provided they can give a reasonable quote. Otherwise we have our own specialist repairers.
  5. After the repairs are done, we’ll compensate you $25 for each day your car was unavailable to you due to the damage and repairs, up to a maximum of 28 days (provided our chosen repairers are doing the work)

Make sure you’re checking your car regularly and reporting any new damage as soon as possible.

Damage caused by Borrowers is rare

Looking at the data, only 1 in every 1,400 trips results in any significant damage (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 like scrapes and scratches, this happens around once every 120 trips, so the average owner would experience one minor damage incident in two years.

Related articles

Your car’s insurance coverage
Compensation and fee relief due to damage
Dealing with damage caused by Owners or Additional Drivers
Dealing with damage or loss from hail, fire or theft
Assessing your car's value in the case of a total loss

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