Coverage on FairCar
Your personal policy. Plus a security deposit. That's it.
FairCar does not sell or provide insurance. Coverage varies by carrier, state, policy, and whether your insurer covers peer-to-peer rentals. Always confirm with your insurer before you book or list. A refundable deposit covers incidentals.
The simple version
- Guests rely on their personal auto policy. Confirm that your policy covers peer-to-peer rentals before booking and use it for covered accident or vehicle-loss claims.
- Hosts carry commercial coverage. Every listed vehicle must have commercial coverage maintained by the host, separate from FairCar.
- A refundable security deposit covers incidentals. It may cover cleaning, minor damage, fuel shortfalls, mileage overages, and other approved post-trip charges.
- Third-party at-fault accidents go through the other driver's insurance, like any other car accident.
The security deposit
Every trip carries a refundable security deposit, sized to the value of the vehicle:
Standard
Vehicles under $40,000 MSRP
$300
Premium
$40,000 - $80,000 MSRP
$750
Luxury
$80,000 - $150,000 MSRP
$1,500
Exotic
Over $150,000 MSRP
$3,000
The deposit amount is shown at checkout, but the authorization hold is placed 24 hours before trip start. After the host's post-trip inspection, if there are no issues, the hold is released. Your bank controls how quickly the released hold disappears from your account.
What happens if something goes wrong
Minor damage (scratch, dent, dirty interior)
Host opens a dispute with photos. If accepted, the cost is captured from your deposit. If contested, our dispute resolution flow walks both sides through proposals and counter-offers.
Damage beyond the deposit
The deposit is captured for what it covers. The remainder is filed against the guest's personal auto policy, exactly as if the guest had borrowed any friend's car.
At-fault accident with a third party
Third party's insurance pursues their claim against the guest's personal auto policy. FairCar doesn't sit in the middle of an insurance claim.
Not-at-fault accident
Claim is filed against the at-fault driver's insurance. Guest's personal policy may cover deductibles. FairCar will assist with documentation from the trip (timestamps, inspection photos).
Vehicle stolen during a trip
Report immediately through Trust & Safety. Police report required. Guest's personal policy and the host's vehicle policy handle the loss according to their terms.
What we ask of you
- Guests: attest once a year that you carry a personal auto policy that covers you to drive vehicles you don't own. Verify identity before the trip starts.
- Hosts: attest once a year that every listed vehicle has commercial coverage. List the carrier name on your profile so guests can see it.
- Both: complete the four required inspections, pre-trip and post-trip, on both sides. Photos and odometer readings are the basis for every deposit decision.
This page is informational, not legal advice. Coverage varies by carrier, state, policy, and whether the rental is peer-to-peer. Some carriers exclude car-sharing or require a rider. Guests should confirm coverage with their insurer before booking.