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 Damage and Loss Liability 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 and Loss Liability 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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  • But this page doesn’t mention what happens if your car gets smashed and there is minor “pre-existing damage” such as paint scratched off. CND apportions the costs heavily In their favour. E.g. I had my bumper cracked so CND said the quote was $120 - but it was up to me to arrange the repair. Nobody will fix a bumper for $120. Their reasoning was that it had existing damage (paint missing - it not cracked) and $120 was the amount apportioned to the new damage. CND said I could opt for another quote for the total repair, but I would have to commit to pay the difference, thus heavily discouraging this option. Realistically, I estimate this repair to be $1500 if the bumper was also resprayed, but I don’t care about the paintwork - I just want the crack fixed.

    The bottom line is, if your car has scratches, then it isn’t insured to that standard that would be expected by a reasonable person.

    I therefore find this page to be deceptive and misleading.

    The person I just spoke to on the phone said “our insurance is not the same as other insurance”. Not the same! Well this should be stated properly all over the website then, shouldn’t it?

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  • Hi Lindsay, sorry to hear you're unhappy with the outcome of this case. If you're ever unhappy with a decision you can request that it get escalated and reviewed by a senior team member. If you'd like to take this option, please reply to the ticket for this case.

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  • No, I already had a ticket and spent hours on the phone trying to get a better outcome and requested to escalate it and was denied access to any senior authority. Your post is merely for PR purposes.

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