If you’ve looked into driving for a ride-sharing service, such as Uber, or Lyft, then you know that it’s important to have a qualified vehicle in order to do so. While some can afford to pursue this with their current vehicle, many look into either leasing, buying, or renting a newer car in order to offer ride-sharing services.
Enter car-sharing rental services. Rather than spend the money on leasing a newer vehicle, or dealing with the upkeep and maintenance of your own, you can rent cars, not from car rental companies, such as Avis and Hertz, but from other people.
In many ways, it’s just the obvious extension of the ride-sharing idea. Why use an expensive taxi when I could just be a tap away from a car showing up to take me where I need to go? Why spend the money on a pricey rental service when there’s probably someone nearby willing to rent their car to me instead?
Two such companies are HyreCar and Turo. While the two companies offer similar services, there are definitely some differences in quality and trust. How do they measure up? Let’s talk about the main categories you should consider when choosing between the two.
How It Works
For Drivers: There are six basic steps you’ll take to rent a car from someone using HyreCar.
- Sign up using Facebook, Google or Email. HyreCar will verify your ridesharing status and eligibility in order to approve you.
- Browse cars in your area.
- Find the car you like, and click “Book Now.” An owner has 24 hours to approve or decline your request.
- Arrange to pick up the car with the owner. Download and upload insurance, registration, and vehicle inspection to your ridesharing portal. Confirm the damage waiver and present your license.
- Earn Money while you drive by offering ridesharing services, such as Uber or Lyft. If you need to extend your rental, you can easily do that.
- Fill up the car with gas, drop it off with the owner, and make sure you rate them.
For Owners: Here are the four basic steps for renting out your car.
- Register your car with HyreCar. Get the vehicle inspected, upload your registration and upload some quality photos.
- You’ll receive a notification when someone wants to rent your car. Respond as quickly as possible. This is not only to ensure the happiness of the driver, but also to make sure another owner doesn’t respond first!
- Arrange to meet with your driver to hand over the keys. Make sure you check gas mileage and overall vehicle condition first!
- Meet your driver at the prearranged location, look over the vehicle, and rate your driver.
HyreCar’s cancellation policy is as follows:
For Drivers: cancellation is possible anytime prior to acceptance from the owner, and after booking (but before pick-up), cancellation will be allowed for reasonable issues. In both cases, a driver must contact HyreCar support.
For Owners: As long as insurance has not been issued, owner’s may cancel up to two times a month, by contacting HyreCar support, before being at risk for deactivation.
How Does Insurance Work?
HyreCar’s insurance policy is pretty straightforward and easy to understand. Here are the basics:
- The insurance policy of Uber or Lyft trumps HyreCar’s policy while you have a passenger.
- HyreCar’s policy is $10 a day (this is for drivers only).
- You are required to have personal insurance at the state minimum.
- The HyreCar policy covers up to $25,000 of vehicle damage, and up to $300,000 liability.
- There is a $2,500 deductible for all damages for drivers.
- It’s fairly similar to most ridesharing policies.
- Insurance begins and ends at the start and end time of your rental. If you extend your rental, you’ll want to make sure your insurance coverage get’s extended as well.
What Do The Reviews Say?
According to this review by Harry over at The RideShare Guy, the experience with HyreCar was overwhelmingly positive. Highlights include:
- Customer service was excellent and easy to access.
- Trust and safety were established through HyreCar’s scam vetting process.
- There are some luxury vehicles available, but the majority are affordable cars that are well-suited for the purpose of ridesharing.
- Costs of maintenance and depreciation are built into the price of the rental, rather than being covered by you (were you to use your own vehicle for ridesharing.
- It provides flexibility: it’s fairly easy and quick to get in and out of rentals.
As far as any negatives, Harry’s main complaint was that it’s not a great long-term solution for those looking to pursue a career in ridesharing, being less cost-effective over time.
How It Works
For Drivers: Turo works similarly to HyreCar in this way. Here are the five steps for drivers.
- Create an account with Facebook, Gmail, or your email account and wait for approval.
- Once approved, search for cars in your area.
- Book your vehicle (some cars have a “Book Instantly” option). Owners have up to 8 hours to respond to your request.
- Arrange for vehicle pick up with the owner. You can also have the car delivered for a fee. Present your license at pick up.
- Return the car at the location you’ve arranged with the owner, after filling the car up with gas.
For Owners: Four easy steps for owners.
- Create a free account, describe your car and upload photos, and keep a calendar of car availability updated for potential drivers.
- Respond quickly when you get a request for your car.
- Check your car and gas mileage, and meet with your driver at the arranged location. Make sure you check their license.
- Pick your car back up from the driver at the arranged time and location. Make sure you rate them when it’s all done!
Turo’s cancellation policy is as follows:
For Drivers: 100% of the trip price will be refunded up to seven days before the trip. After that, 90% of the trip price is refunded, and if the cancellation is less than 24 hours before the trip, there is no refund. The trip FEE is non-refundable one hour after booking.
For Owners: Owners must notify Turo and the traveler of cancellation at least 72 hours in advance. If it is less than this, they incur a $50 a charge, and risk being removed from the marketplace.
How Does Insurance Work?
Turo’s Insurance policy is a bit more complicated than HyreCar’s. Here are some basic things you’d want to know, although you may want to take a deeper dive if you’re planning on driving or renting with them.
- You DO need to have your own personal insurance in order to register your car with Turo as an owner.
- Turo offers 4 insurance options for coverage: Owner Provided, Basic, Standard, and Premium.
- Owner Provided: Commercial insurance must be provided before the rental and approved by Turo.
- Basic: Liability coverage up to the minimum required by the state where the car is registered. Physical damage deductible is $3000.
- Standard: No Physical damage deductible. Does not cover loss of income or exterior wear and tear.
- Premium: “Liability coverage up to $1,000,000; physical damage to the car covered up to the actual cash value of the car. In each case, coverage is secondary to any other insurance you may already have. There is no deductible for the supplemental liability coverage; for the physical damage protection, once you’ve exhausted your own insurance for physical damage, your out-of-pocket exposure is limited to $500.
- Owner Provided allows the owner to keep 90% of the trip price.
- Basic coverage costs 15% of the trip price (10% in Canada).
- Standard coverage costs 25% of the trip price.
- Premium coverage costs 35% of the trip price.
What Do The Reviews Say?
If you’re looking to rent a luxury vehicle for a decent price, Turo is a decent competitor with the big name rental companies.
The insurance situation was somewhat confusing, and this blogger admittedly just chose the basic package without really thinking about it.
The owner responded to his request within 20 minutes.
There were a lot of cars to choose from.
It was easy to search for and select a car.
Coordinating with an owner is a little more work than a general rental would be, which may not appeal to some.
Because of added fees (insurance protection, gas, delivery fees), the listed price may not be reflective of your actual total.
Summary: How Do HyreCar and Turo Compare?
Both HyreCar and Turo have some strengths and weaknesses (all companies do!), but if you’re looking to use a car rental for ridesharing purposes, we think HyreCar is the smarter option.
Turo is meant to be a substitute for your regular car rental service, which might make it a good choice for a weekend drive or a business trip, but makes it less ideal if you’re hoping to use it to make money with Uber or Lyft. There are two main reasons for this:
First, Turo’s insurance policy is far more complex, and far less cost-effective than HyreCar’s. Because of this, drivers may be compelled to make an unwise decision about what coverage to choose, and the last thing you want is to put yourself, or your passengers in danger. If you do choose the premium coverage, you’re significantly increasing the cost of your rental, meaning more work to make up the difference.
Second, HyreCar’s cancellation policy is more geared toward those intending to use their rental for ridesharing, so it’s more conducive to that purpose. For Turo, there is zero chance of refund if a driver cancels less than a day in advance, and for owners, it’s three days.
If you’re looking into car rentals for your ridesharing business, we recommend HyreCar, and we don’t think you’ll be disappointed!