Whose Insurance Pays for Damages From a Peer-to-Peer Carsharing Crash?

carsharing graphic with tableYou may have heard about peer-to-peer carsharing. You may have even made use of a peer-to-peer carsharing service. If you need to use a car for a short period, peer-to-peer carsharing can be a low-cost, convenient way to do it.

However, questions often arise when a crash occurs. Whose insurance is liable for the damages? Can you still seek compensation from your personal injury protection insurance if you were injured in a car you were borrowing? Can the victim seek compensation from the liability insurance of the person driving the shared car?

Below, we discuss liability issues that may arise after a crash involving a peer-to-peer carsharing vehicle. If you were a victim of this type of crash and have questions about seeking compensation for your damages, give us a call today. There are no upfront fees for our services.

How Does Peer-to-Peer Carsharing Work?

Carsharing is not the same as ridesharing. Services like Uber and Lyft are different from carsharing companies like Turo, Zipcar and Getaround.

Carsharing means you pay to rent a car from an individual who signs up for a carsharing program. Ridesharing is different because you are only paying to get a ride in someone else’s car, you are not paying to drive someone else’s car.

People may sign up for carsharing and allow their car to be used as a quick way to make extra money. People who make use of these services may do so because they want to avoid the expenses that come with owning or leasing a car.

How Does Insurance Coverage Work After a P2P Carsharing Crash?

If you get into a crash involving a peer-to-peer carsharing vehicle, you can seek compensation from your personal injury protection insurance. The process will be the same as it would be for a crash involving a vehicle that was not part of a peer-to-peer carsharing service. Your personal auto insurance follows you and will cover your medical bills and wage loss, under the no-fault system, for the $20,000.00 mandatory minimum under Minnesota law.

However, what if you also need to file an at-fault liability insurance claim? Can you file a claim against the insurance of the driver of the carsharing vehicle? Would you need to file a claim with the insurance of the owner of the vehicle? What about filing a claim against the P2P carsharing company?

These are questions that should be reviewed with an experienced Bloomington-area car accident attorney.

Here is a brief explanation of the coverage offered by some of the popular carsharing companies. If you were injured in a crash with the carsharing vehicle at fault, you may be able to seek compensation from this coverage:


Turo hosts (the people renting the cars out) can choose from one of five insurance plans, but all five come with $750,000 in third-party liability insurance. However, each plan pays 100 percent of eligible damage costs, after the deductible is paid.


Zipcar provides the minimum amount of liability insurance the state requires. However, this coverage does not kick in until all other coverage has been exhausted.


This company provides liability coverage up to the minimum requirements in the state where the car is being shared. However, this coverage is secondary to any other available insurance coverage. Vehicle hosts have $1,000,000 in liability coverage.

What if You Get Into a Crash While Driving a Carsharing Vehicle?

Your personal injury protection insurance should apply to your economic (medical bills and wage loss) damages. You may also be able to seek compensation from the liability insurance of the driver who is at fault for the crash. If the other at-fault vehicle does not have insurance, or not enough, then your personal auto coverage or the P2P coverage may apply.  Both policies need to be reviewed to determine coverage priorities.

Obtaining full compensation on your own can be a challenge. An experienced attorney can investigate what happened and negotiate with the insurance company on your behalf.

Protecting Yourself if You Use a Carsharing Service

Before allowing your car to be rented or before renting another person’s car, you need to review your insurance coverage verifying you are covered if a crash happens. You can contact your insurance company and the carsharing company to determine the coverage that would apply. This way you can avoid surprises if you are involved in a crash.

You never know when a crash may happen, and you never know if you could get seriously injured and need significant medical treatment.

Contact TSR Injury Law Today to Discuss Your Claim

Your medical expenses and other damages could be more expensive than you realize. If you do not find an experienced attorney to represent you, it is probably going to be harder to obtain all the compensation you need. This could be financially devastating and leave you unable to get the medical treatment your doctors recommend.

There are no upfront fees for clients of TSR Injury Law. We take car crash cases on contingency, so there are no fees to pay up front.

Schedule your free initial consultation. Call (612) TSR-TIME.