All about the sharing economy: Auto and Home

All about the sharing economy: Auto and Home

The sharing economy has become part of our everyday lives: carpooling, car-sharing, peer-to-peer car rentals, as well as space-sharing and short‑term home rentals via sharing platforms. These practices are appealing because they’re flexible and cost effective. But before you jump in, have you thought about your insurance coverage? Behind these new habits lie grey areas that can have a major impact on your insurance protection. Here’s what you need to know to stay properly covered.

What is the sharing economy?

The sharing economy is based on sharing goods or services between individuals, often through digital platforms.

In the automotive world, this includes:

• Carpooling : Sharing a ride with other passengers to reduce costs and your carbon footprint.
• Car sharing : Making your vehicle available to other drivers for short periods of time.
• Peer to peer rentals : Renting out your vehicle via sharing platforms.

In the housing world, this includes:

• Short term rentals : Hosting travellers in your home.
• Temporary co living : Sharing your home to reduce expenses.
• Shared spaces : Subletting a room or office. These practices are rapidly gaining popularity, especially among younger generations and newcomers, who see them as economical and eco friendly solutions. But be careful: your insurance policy is not always adapted to these types of activities.

Risks to be aware of before sharing your car or home

Watch out for policy limitations and exclusions.
In the event of a claim, you may not be compensated. It’s best to review your policy before starting this kind of activity.

How to stay well protected

The golden rule: talk to your insurer before getting started. Never assume that your current policy is good enough. Every situation is unique, and a quick check can help you avoid unpleasant surprises.

Practical tips before participating in the sharing economy

Contact your insurance agent: ask specific questions about your coverage for carpooling or rentals.

Compare your options: some platforms offer included or optional insurance. Make sure you know before signing up.

Why it matters

Accidents can happen at any time. Without proper coverage, you could be on the hook for thousands of dollars in repairs or compensation. The sharing economy is an appealing option, but it shouldn’t come at the expense of your financial security.

The sharing economy is changing the way we live and get around, but it requires extra care when it comes to insurance. Before sharing your vehicle or your home, take the time to review your coverage—and always make sure anyone using your vehicle has a valid driver’s licence. A simple call to your insurer can make all the difference.