Short answer:

Like other comprehensive insurance policies, Car Next Door's insurance does not cover wear and tear. You can cover the cost of wear and tear from normal use through your car's distance income

Wear and tear is described in the Damage Policy. It includes things like scuffing of paintwork and interiors and wear to tyres.

If your car comes home with a scuff on the hubcap, or a small scratch on the door, it’s not going to be considered ‘damage’ that requires repair. It’s just part of the car leading a full and valuable life, doing more of what it’s made for.

Your distance income compensates you for the wear and tear from Borrowers’ driving. You get 13, 25 or 37 cents for each kilometre that borrowers drive, depending on the distance rate you choose. This covers fuel, tyre wear and servicing. The RACV estimates that a medium car costs approximately 12 cents/km for fuel and 8 cents/km for tyre wear and servicing.

In addition to this income, your car will now be making money each hour or day that it is rented out. Rather than sitting in the garage, staying pristine but doing nothing, your car is now doing more of what it’s made for – and offsetting its standing costs at the same time.

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