July 17, 2018
Posted: July 17, 2018 |
Maven, a car sharing platform run by General Motors Company, is a new service to let owners of its cars rent them out and earn money, as the automaker makes an effort to move into selling rides as a service instead of just building vehicles.
The idea is to let GM customers put their cars into Maven's fleet, using its app the same way Airbnb Inc. enables people to rent out their homes. Maven rents cars out for hours or days at a time the same way as other rental car companies would. If this way to do business becomes successful, Maven will get more cars to rent out without carrying assets on its books, while GM customers have a way to earn some extra cash.
For GM, the bigger idea is to establish a new way to sell transportation as customers increasingly use ride-hauling services provided by Uber and Lyft.
The pitch to GM's individual car owners is that they can make a profit on their cars. They provided an example that if you were the owner of a Chevrolet Cruz compact and you rent the car for seven days each month, you can earn $6,401.00 a year. Since the car only costs $4,090.00 on average a year, the car owner can make a yearly profit of $2,300.00.
What Does This Mean For Insurance Policies?
The concern and question we have at Allen, Flatt, Ballidis & Leslie is what happens if a renter of one of these vehicles has an accident. Is your automobile liability policy going to cover the accident if you are participating in these types of new ride-share services? If you are considering such a service, we highly suggest that you contact your insurance provider and request a quote on potential coverage for the renting of your automobile. It is highly unlikely that your current liability policy would cover accidents if a "renter" were driving your vehicle. This is a trap that we commonly see with drivers of Uber, Lyft and other ride-sharing services. The worst thing you can do is rent out your vehicle, have the driver cause an accident, and then have no insurance coverage or protection subjecting you to potential personal responsibility.
Suffering a Personal Injury during Car Accident
If you experience a car accident, whether it involves traditional vehicles or emerging ride-sharing services, you need experienced legal representation from a law firm that understands the rapidly changing face of auto accident law.
The experienced personal injury attorneys for Allen, Flatt, Ballidis & Leslie are available to take your call and answer your questions. We believe in holding those responsible accountable for their actions and fighting for the compensation that injured victims deserve. Our firm will fight to protect your rights. Contact us to learn more at 888-752-7474 or firstname.lastname@example.org.