Coverage for Carsharing

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If you are planning to use a carsharing service in the near future, with the convenience and popularization of companies such as Turo, Evo, Modo, Zipcar, and Car2Go, you may have to reconsider your source of insurance coverage.

If you carry either a Roadstar or Roadside Plus package with your ICBC Autoplan insurance, you also carry Rental Vehicle Coverage. However, this coverage does not necessarily cover carsharing services. Rental Vehicle Coverage included in ICBC's Roadstar and Roadside Plus packages comes with the following eligibility limitations:

• The name of the registered owner of the vehicle with the Roadstar or Roadside Plus package on it must match the name on the rental contract
• The vehicle must be rented from an established rental agency
• There must be a formal, written rental contract
• The rental contract must be for a term of 30 days or less
• The maximum daily rental rate is $300 CAD in Canada or $250 USD in the United States (All ICBC coverages are restricted to Canada and the continental USA, including Hawaii and Alaska)

The second and third listed requirements above (the status of the rental agency and the existence of a formal, written rental contract) excludes certain carsharing services from Rental Vehicle Coverage purchased under ICBC's Roadstar and Roadside Plus packages. Similarly, private auto insurance companies regularly have identical exclusions for their rental vehicle coverages. So, where can you buy insurance for this coverage gap?

ICBC offers a standalone insurance product called APV281: Rental Vehicle Policy, which can be purchased for vehicles you rent or borrow, regardless of whether a contract exists or not. The coverages include optional own-damage (Collision and/or Comprehensive) and basic/extended Third Party Liability (bodily injury and property damage inflicted to third parties). The premium charged for ICBC's APV281 has tended to run along the lines of $10/day, with the length of the policy term decided by you.

ICBC's Rental Vehicle Policy does come with some exclusions - for example, coverage is void if the vehicle is rented or borrowed for the exclusive use of a non-BC resident. For more information on this product's exclusions and coverages, or if you would like a quote, please contact us; we would love to hear from you.

Safe Driving & Happy Trails!

The Homestead Insurance Team