HyreCar Rental for Ridesharing Services (4 Must-Know Facts)

HyreCar rentals are a car-sharing program for drivers interested in leasing a vehicle for ridesharing. HyreCar rental for ridesharing is a new service, and you should understand your risks before renting.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Sep 15, 2020

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Here's what you need to know...

  • HyreCar provides the option for customers to either rent or lease a car to use for ridesharing companies
  • HyreCar provides insurance coverage for customers to have additional protection when on the road
  • Rideshare drivers should always make sure they have adequate insurance coverage when driving anywhere

Do you want to drive for Uber or Lyft but don’t have a vehicle that meets the requirements? Do you have an extra car that is just sitting around without being used?

If either of those sound like your situation, HyreCar may provide the perfect solution. HyreCar offers the option for drivers to rent a car to use for ridesharing, which means both the driver and the owner of the vehicle have an option for getting paid.

HyreCar is still a relatively new company, so those interested in using their business model may have some questions about exactly how the process works.

Read on to find out more about the pros and cons of HyreCar. Then use our FREE quote tool to compare auto insurance rates today to make sure you’re protected!

#1 – About HyreCar

HyreCar is a company which provides options for people to drive for Uber or Lyft even if they don’t have a car.

HyreCar allows drivers to pick a car to rent and use as their car for ridesharing. The rented cars are owned by people who may not want to be ridesharing drivers but have an extra set of wheels just sitting in the garage.

Applying to be either a driver or a car owner on HyreCar’s database is a simple process.

As a driver, you must create an account with HyreCar and then you have the option to choose a car that fits your desires and is in your same location.

First-time drivers must pass a background check before being approved. Once approved, you must submit to Uber or Lyft the vehicle registration, 19-point inspection report, and rideshare insurance.

After the paperwork has been submitted, you are ready to pick up the car and start earning money as a driver!

Listing your car as a HyreCar rental is a similarly easy process. You simply list your car, approve requests, and have the various documentation verified before allowing the driver to pick up your vehicle to use. You then make money without even walking out your door!

We highly recommend doing your due diligence and looking at reviews of the service especially as HyreCar develops grows.

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#2 – Potential Risks of HyreCar

HyreCar filed for an initial public offering the last week of May 2018. There are a few potential risks to investing in this “Airbnb of cars.”

First, there is a possibility that the company could be absorbed by either Uber or Lyft or another ridesharing company. Other concerns include the instability that could come from changes in regulation from the government as well as other competition.

Second and perhaps the biggest risk of HyreCar is the simple fact that the company itself may not survive the initial losses as it expects even more significant losses in the next year or so.

On the flip side, they are the only company offering this kind of unique service which may help them as ridesharing companies are booming.

Third, insurance for this type of vehicle sharing may be a risk. How can you know that you as a driver or a car owner will be protected if you use HyreCar? If an accident were to happen, insurance is necessary to help you with any damages or bills that come up.

It’s a new frontier but the good news is that your current company may offer options for ridesharing insurance. If not, HyreCar also provides rideshare coverage for you. Do your research on your own policy and HyreCar’s.

#3 – Hyre Car Insurance Coverage

Insurance policies for ridesharing have become necessary as the popularity of companies such as Uber and Lyft increases. The drivers for these companies must have enough coverage to protect them, their passengers, and their vehicles.

Most of the big companies such as Allstate, State Farm, and Farmers Insurance offer ridesharing coverage options. The options available from insurance companies will depend on which state you live in.

Uber and Lyft offer their own ridesharing insurance which kicks in when the driver’s personal insurance coverage ends.

These insurance policies are categorized according to three different “periods” ranging from when the driver has the app on and is waiting for a ride request to when the driver is actively on a job with other passengers.

HyreCar insurance coverage offers protection for its customers when they are not covered by the insurance policies of Uber and Lyft.

The policy is only in effect while the customer is actively under a rent/lease agreement with HyreCar.

Most companies that offer ridesharing insurance allow drivers to choose policy coverages that are specific to their individual situations.

These policies offer liability coverage, which is usually required by the state and first-party coverage such as collision and comprehensive.

#4 – Compare Insurance Quotes

For drivers or car owners under contract with HyreCar, there are several different options for insurance. HyreCar offers its own insurance to help fill in the gaps left by the insurance policies of Uber and Lyft.

Additionally, most well-known insurance companies offer customizable ridesharing coverage. If you are looking to either rent from or lease through HyreCar, you should first make sure you have adequate protection.

The best way to find the right auto insurance coverage is to compare several different companies. You may find that your current insurance company does not offer the best deal for your situation.

Use our FREE quote tool to compare auto insurance rates today!

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