Understanding the damage policy - info for car owners

When you list your car, please make yourself familiar with the Damage Policy.  The following is an overview of how it works.

If you have found damage to your car, see this FAQ on how to report damage.

1: What damage is covered

When you join Car Next Door you can cancel your existing comprehensive insurance, as your vehicle is covered under Car Next Door's fleet insurance policy. Borrowers are also covered by our fleet insurance policy when they are driving your vehicle.

The insurance policy covers any accidental loss or damage to, or theft of, the vehicle; or third party loss ("Loss"). It does not cover general wear and tear.

Also see: understanding the difference between ‘damage’ and ‘wear and tear’

2: Your Damage Cover Liability

Your Damage Cover Liability (or "DCL") amount is determined by the Owner Plan you have chosen The DCL works like an excess, and caps the amount that you will have to pay in the event of Loss that you are responsible for (subject to the exclusions described below).

3: If your vehicle is damaged by a Borrower

If your vehicle is damaged during a Borrower’s booking, then the member who had the vehicle at the time will be liable to pay for repair or replacement of the vehicle – you will not bear any of the costs for these repairs. Please read the Damage Policy for detailed instructions on how repairs are organised.

If your vehicle is damaged by you or your Additional Driver

If your vehicle is damaged outside of a Borrower’s booking (i.e. when you or your Additional Driver have the car, or when it is parked), then you will be liable to pay for repair or replacement of the vehicle, up to the amount of your or your additional driver's DCL.

However, if the vehicle is damaged where another driver was at fault (and you can provide full details of the other vehicle and driver), then you will not have to pay anything.  

You are not covered if you (or your Additional Driver) breach the terms of the Membership Agreement (e.g. if you drive while intoxicated).


What happens when it’s not possible to work out who is responsible for damage

Fewer than 1% of bookings result in damage to a vehicle. Most of these instances involve minor repairs under $200.

We make every effort to minimise these instances, including by vetting borrowers and maintaining a conscientious community of Borrowers and Owners.

However, when a car is parked on the street and shared through our convenient instant booking system that allows Borrowers to collect and drop off cars at any time of night or day with no need to meet, there may occasionally be cases of minor damage when it is genuinely difficult to work out who is responsible.

If there is a dispute about whether particular damage was caused during a Borrower's booking or before or after the booking, then the Borrower is responsible unless they can prove that the damage occurred outside of their Booking. We require Borrowers to take photos at the beginning and end of their booking to protect themselves in the event of a dispute.

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