We all know the impact that AirBnb had on the hotel industry and many of us have either rented an AirBnb or even listed our own properties on the platform.
Cars are considered a pretty bad investment (unless you don’t drive them), but what if somebody needs a car just like yours, which is sitting in your driveway just depreciating? Some platforms are making it easier for you to make money from your under-utilized investment. Turo is a company that has cars listed on their site by people across North America and parts of Europe. Rent Your Ride is a local to Winnipeg startup that is providing a similar experience for Canadians.
There are over 30 million cars in Canada that are, for the most part, massively under-utilized. There are clear reasons for Canadians to share their cars; they sit idle more than 95 per cent of the time – and the cost of car ownership in Canada is outrageously high. According to Statistics Canada, we spend more money on our cars than on food each year. Putting this depreciating asset to work makes economic sense. It transforms the way people think about cars.
These platforms provide a lot of variety and options compared to your typical rental car agency. You can rent a Chevrolet Cruze in Winnipeg from as low at $35/day on Turo or you can splurge and go with the Mercedes C63 AMG on Rent Your Ride.
Insurance policies provided by platforms such as Turo don’t work in British Columbia, Manitoba or Saskatchewan, making it hard for car owners in these provinces to derive revenue from their cars to offset the cost of car ownership as they have to look to other sources for protection (which are usually more expensive and restrictive), which can be costly.
Before listing your vehicle on Rent Your Ride or Turo make sure you switch your insurance coverage to “U Drive”. U Drive insurance covers your vehicle with the purpose of renting or borrowing your vehicle to another individual. The max lease term that U-Drive covers for is 30 days or less. This coverage is mandatory before listing your vehicle on Rent Your Ride and Turo and can be purchased at any MIG Insurance location.