Car sharing has revolutionised the way we think about transportation. It’s a cost-effective, eco-friendly, and flexible alternative to traditional car ownership. However, there are some unique considerations, particularly when it comes to insurance. In this blog post, we’ll introduce you to car sharing, explore its benefits, pitfalls, and discuss the insurance challenge that many users face.

What Is Car Sharing?

Car sharing is a mobility service that allows individuals to rent vehicles for short periods, often by the day or hour. It’s typically facilitated through smartphone apps or websites and requires membership with a car-sharing provider. Members can book a car, pick it up at a designated location, and pay for the time and distance they use.

Benefits of Car Sharing:

1. Cost Savings: Car sharing can help eliminate the expenses associated with car ownership, including maintenance, insurance, and fuel. You pay for the time and distance you use.
2. Convenience: With cars available at various locations in your city, you have access to a vehicle when you need it without worrying about upkeep.
3. Eco-Friendly: Car-sharing fleets often include fuel-efficient and electric vehicles, reducing your carbon footprint.
4. Flexibility: You can choose the type of vehicle that suits your needs for each trip, whether it’s a compact car, an SUV, or a hybrid.

Pitfalls of Car Sharing:

1. Availability: Car sharing may not be as widespread in some areas, limiting your options for finding a vehicle.
2. Usage Fees: While cost-effective for short trips, car sharing can become costly for longer journeys.
3. Peak Demand: During high-demand times, it may be challenging to secure a car if you haven’t booked in advance.
4. Limited Personalisation: You don’t have the same level of personalisation and comfort as you would with your own vehicle.

The Insurance Challenge:

One significant challenge with car sharing is insurance. Most personal auto insurance policies are non committal about covering car sharing. They do not tend to include or exclude it in their PDS. This means that if you get into an accident while using a car-sharing service, you might not have the same level of coverage you would expect.

KOBA Insurance:

KOBA is the only Australian insurer that actively supports the car sharing industry. In 2022, KOBA created a partnership with Uber Carshare (formally Car Next Door) to build a product specifically for Uber Carshare customers.

Designed for Car Sharing:

Uniquely designed with Uber Carshare, KOBA offers car share owners pay-per-KM insurance when they’re using their car. Owners get comprehensive coverage which covers their car while it’s parked between bookings, and a unique per-KM rate for insurance while driving.

Synced with Instant Keys Technology:

KOBA works with Uber Carshare’s Instant Keys GPS device^.

By automatically switching between KOBA and Uber Carshare, our integrated tech distinguishes when your car is used for personal use and measures the KM you drive so you pay for the insurance you use.

As a KOBA customer, you pay from 7 cents per KM you drive, and an upfront cost to cover your car while parked for incidents like theft, fire, hail, etc.

You can download the KOBA app to track trips, costs and policy docs.

In Conclusion

Car sharing is a convenient and eco-friendly transportation option with numerous benefits. However, it’s important to be aware of potential pitfalls, such as availability and usage fees. Most importantly, it’s important to understand the insurance challenges associated with car sharing, as your personal auto insurance may not provide adequate coverage. To make the most of your car-sharing experience, it’s crucial to research and choose a reputable provider with comprehensive insurance options.

Looking to join Uber Carshare and looking for a car-share insurance quote?

Any advice provided on this site is general advice only and does not take into account your individual needs, objectives or financial situation. Terms, limits, conditions and exclusions apply. Before making a decision, you should carefully read the Product Disclosure Statement & Financial Services Guide (PDS & FSG), and the Target Market Determination (TMD), which are available at kobainsurance.com.au to help you decide if the product is right for you. If you purchase a policy, KOBA receives a commission, which is a percentage of your premium, and may be entitled to a profit share if certain thresholds are met in agreed periods. Please ask us for more details.