Uber partners with insurtech KOBA: Side hustlers, take note
Insurance could be getting easier for renting out your car.
Uber-owned Car Next Door has partnered with KOBA to offer cover that's set up for the needs of car sharers.
Car Next Door is one of a handful of car sharing platforms. The Australian start-up matches vehicle owners with those who need to borrow a car for a short period of time.
Drivers using such apps pay a fee to the car owner. From the owner's point of view, it's a way to make extra cash while their vehicle would otherwise be parked up.
According to Car Next Door, the top 10% of car owners on its platform earn $7,000 a year on average with this side hustle.
How insurance works with car sharing
Whether it's to run a few errands or move between homes, individuals who hire cars will be covered for damage or loss while they're driving. Car sharing services typically bake in insurance with their product.
However, things aren't as clear-cut for car owners.
While some insurers may cover the car if sharing is occasional, others will require you to get rideshare cover added to your policy for a fee. Some may not cover you at all.
Andrew Wong, Founder of KOBA, told Finder: "Car sharing coverage is vague. Most personal motor insurers don't mention anything about car sharing in their PDS and none of them talks about car sharing through digital portals."
How does KOBA's coverage work?
Essentially, KOBA lets car owners pay an upfront cost for comprehensive cover of their vehicle while it's parked and pay-per-kilometre insurance, often a few cents per km, while they drive it.
Wong explained that, with the car owner's permission, Car Next Door shares anonymised telematic and booking data with KOBA. This enables Car Next Door and KOBA to know when the car's being driven for personal use and to measure the kilometres driven.
Wong added: "When the car is rented out personal coverage is literally turned off. When the car is returned the coverage is turned back on. Through the tech we have a clear start point, stop point, and coverage accountability."
Following the new partnership, insurance is now available to Car Next Door customers within their app and customer portal.
New types of car insurance
Taking the time to look into the various types of car insurance on the market could help you find more suitable cover.
Wong previously told Finder: "There are a lot of new innovative insurtechs working hard to drive value in the market: monthly policies, policies that include rideshare, female-only brands, data-driven policies, or pay-per-kilometre insurance."
Wong added: "I suggest that customers looking to switch take a serious look at some of the new products on the market."