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Can you make money renting your car?

Can you make money renting your car?
Image source: Getty Images.

More people across the UK are renting out their possessions to make money, but can you rent your car?

We explore whether it’s possible to earn cash from your motor and how it might affect your car insurance. 

Can you rent your car to make money?

The answer is yes. In the UK, you can rent your car to make some extra cash. It’s a great alternative to selling your car outright and could help to boost your income too.

How do you rent your car to make money?

Renting out your car is really simple. All you have to do is sign up to a car rental service. There are lots of companies available, including Turo, Getaround and Hiyacar.

You’ll need to register your car with the company, including details about the model and the year it was registered. You can also set the hire price, availability and pick-up location for your motor.

Once you’re registered, you’ll be able to accept customers willing to rent your car.

You can fit your car with a ‘smart box’ which allows remote access to your vehicle, or opt to hand over the keys in person.

How much money can you make from renting your car?

The amount of money you can make from renting your car will vary depending on the following factors:

  • The make and model of your car
  • The year it was registered
  • Your annual mileage
  • The value of the car
  • How many days a month you can rent it for

Your earning potential may differ depending on the car rental service you use.

For example, Turo estimates that drivers could earn up to £574 per month on average, while Hiyacar estimates £650 per month.

Getaround offers a calculator which uses the model of your car to give a tailored estimate of the amount you could make by renting your car on their platform. 

Do you need extra car insurance?

Your car will be covered by the rental company’s insurance policy, instead of your own, when it’s being used by another driver.

This means that your existing motor cover policy will not be affected if the person renting your car has an accident. Your no claims bonus should be protected as well.

It’s important to check the terms and conditions of the insurance before renting your car to find out if are any limits to the cover. You should also check whether the policy includes a courtesy replacement car in the event of an accident. 

Does renting out your car affect your car insurance?

Although your car will be protected by a separate policy, your own car insurance may be affected if you decide to rent out your car.

Hiring out your vehicle is likely to increase your mileage, which could cause your premium to rise. This is because frequent drivers are statistically more likely to get into an accident and make a claim.

Check out our guide on how to get cheap car insurance for advice on cutting your premium.  

If you’re required to leave a spare set of keys in the car, this could affect your ability to make a claim when the car is back in your possession. This is because most providers exclude claims when your keys are left in or on top of your vehicle.

It’s worth getting in touch with your insurer before you rent your car to ensure that you don’t invalidate your policy. 

Could you be rewarded for your everyday spending?

Rewards credit cards include schemes that reward you simply for using your credit card. When you spend money on a rewards card you could earn loyalty points, in-store vouchers, airmiles, and more. The Motley Fool makes it easy for you to find a card that matches your spending habits so you can get the most value from your rewards.

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