One of the most common questions about swapping cars is on the topic of insurance. What happens if someone is in an accident in my car? Am I covered? Will my rates go up?
Here's the quick answer - All major insurance companies have a 'Permissive Use' clause which cover swaps. You do not need to purchase separate insurance. You will also be reimbursed for your deductible and Avants will cover any insurance rate increases for two years. In a nutshell, you are covered!
For more information, see below.
How does insurance work? Am I covered?
When you allow another person to drive your car, this is known in the insurance world as 'Permissive Use'. It's just like if you loaned your car to a friend or nanny.
In the event that the Avants member that you swap with is in an accident (and they are deemed "at fault"), your insurance policy will provide the primary coverage and the driver's insurance would provide secondary coverage.
This is not the case with peer-to-peer rental marketplaces (e.g. Turo, GetAround, etc) or with taxi services (e.g. Uber, Lyft). In those cases, your insurance won't cover accidents because you have taken money in exchange for the use of your car. That is why you are required to purchase separate insurance from those companies.
What about my deductible?
As part of the Avants Terms of Service, in the case of an accident, all members agree to reimburse the owners for their deductible if they are deemed to be "at fault."
what IF MY rates increase AS A RESULT?
If your insurance rates increase as result of an accident that occurred during a swap, Avants will reimburse you for the increased amount for up to two years (up to $2,000 per member). For example, if you were paying $1,200/year and your rates increased to $1,800/year, Avants would reimburse you for $1,200 ($600 difference X 2 years).