What if a Borrower damages my car?


If a borrower damages your car, we will fix it, get it back on the road quickly and you won't be out of pocket. In fact, we will pay you $25 while it is in for repairs. If you have a preferred repairer we will use yours, provided they give a reasonable quote and timeframe. Otherwise, we have our own specialists.


  • Take a couple of clear photos of the damage.
  • Send them to and our team will follow up with you asap. 


  • Fewer than 1% of all bookings result in any damage to a car.
  • Your vehicle is insured under our fleet policy for its market value.
  • If a borrower damages your car, they are liable for the cost of repair, not you.
  • If we need to make a claim with our insurer, we will, and the borrower will pay the insurance excess.
  • We will organise the repairs, manage the claim with the insurer and get your car back on the road as soon as possible.
  • If a borrower is responsible for damage and you need a car while your car is in for repairs, we'll pay you $25 a day while your car is out of action, for up to 28 days. 

Is it 'damage' or just normal wear and tear?

  • It's important to understand the difference between 'damage' and 'wear and tear', and how they are dealt with when you share your car.
  • Minor scuffing, small scratches, etc., are considered to be normal wear and tear that comes from your car being out and about doing what it's made for. Wear and tear is not covered under our insurance policy.
  • You are compensated for this wear and tear through the per-kilometre payment that you receive. For each kilometre that a Borrower drives, you receive 25 cents, in addition to your share of the hourly and daily rate. This covers both fuel and an allowance for tyre wear and servicing requirements (which the RACV estimates to be approximately 12 cents and 8 cents per kilometre respectively, for a medium-sized car).
  • In addition to this cost recovery through the per-kilometre charge, your car will now be making money each hour or day that it is rented out. Rather than sitting in the garage, staying pristine but doing nothing, your car is now doing more of what it’s made for – and offsetting its standing costs at the same time.
  • If you're the kind of person who feels each tiny scuffing on your car as though it were a graze on your own skin, though, sharing your car with Borrowers (however careful) may not be for you.

You can find a detailed description of 'wear and tear' vs 'damage' in the Car Next Door Damage Policy.


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