Car sharing programs allow you to rent out your car to strangers for a fee, but if said stranger is involved in an accident, you could catch some of the blame.
One such car sharing company is RelayRides, which went nationwide last March. It offers each car $1 million in liability insurance, but in some cases, this simply isn’t enough. “When there’s an accident involving serious injuries, the victims simply have no choice but to sue for at least $1 million, and often more. If you rented the car and you have assets, you could become a target,” said Hillel L. Presser, an asset protection lawyer.
Earlier this year someone in a RelayRides rented car was killed in an accident that injured four other people. Now, someone needs to take the fall for the rest of the damages that exceeded $1 million, and it’s looking like the cars owner is going to be forced to pay.
Presser also offered some advice on how to make sure this doesn’t happen to you. Tips like get as much insurance as possible, account for all of your own assets so you know what you have, and the most obvious one, don’t loan out your car.