With the rise of peer-to-peer car sharing in Perth, more vehicle owners are exploring new ways to earn income by renting out their personal cars. But before you hand over your keys, it’s crucial to understand one thing: insurance coverage. Ensuring your car is properly insured protects you, your renter, and your vehicle in case something goes wrong.

In this guide, we break down the types of insurance you’ll need, legal requirements in Western Australia, and best practices to stay protected.

Why Insurance Is Crucial for Renting Out Your Car

When you list your vehicle for rent—especially on platforms like Accura Cars or other peer-to-peer car rental services—you’re essentially operating a small business. Standard car insurance policies don’t typically cover commercial use or third-party drivers. Without the right policy, you could be left financially vulnerable in case of accidents, theft, or damage.

1. Compulsory Third Party (CTP) Insurance – The Legal Minimum

In Western Australia, CTP insurance is mandatory and included in your vehicle registration. This policy covers personal injury to third parties in case of an accident—but it does NOT cover vehicle damage or property loss.

You still need additional insurance to protect your asset and cover liabilities.

2. Comprehensive Car Insurance – Strongest Personal Protection

A comprehensive policy covers damage to your own vehicle, theft, fire, weather events, and damage to other vehicles or property. However, most standard policies don’t allow rental use unless specified.

Key Tip:

Contact your insurer to upgrade or modify your policy for rental use or switch to a provider that supports peer-to-peer rentals.

3. Peer-to-Peer Car Rental Insurance – A Must-Have Add-On

If you’re using a platform like Accura Cars, ensure that they offer commercial or peer-to-peer insurance. This type of insurance usually includes:

• Liability coverage
• Damage and theft protection
• 24/7 roadside assistance
• Coverage for renters

Some platforms automatically cover vehicles listed with them under their group insurance policy, while others may require you to provide proof of appropriate coverage.

4. Public Liability Insurance – Business-Level Protection

For those planning to rent cars frequently, consider public liability insurance. It covers injuries or damage caused to third parties during the rental period. While not mandatory, it’s recommended if you’re scaling your vehicle rental side hustle.

5. Exclusions to Watch Out For

Even the best policies can have exclusions. Always read the fine print for:

• Unapproved drivers
• Unlisted rental activity
• Unlawful use of vehicle
• Driving under the influence

Failure to disclose rental activity to your insurer could result in a denied claim.

How Accura Cars Helps Protect Vehicle Owners

At Accura Cars, we simplify the process of renting out your car in Perth while ensuring peace of mind. Our platform works with insurance partners who provide tailor-made policies for vehicle owners in the car-sharing economy. We help protect you from financial risk, ensure transparency, and offer support every step of the way.

Final Thoughts: Don't Rent Without Insurance

Before you rent out your car in Perth, double-check your insurance coverage. The right policy not only protects your vehicle but also provides peace of mind to both you and your renters. Whether you're a casual lender or building a car rental business, make sure insurance is your first priority.