Understanding Minor Damage versus 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.

As a shared car, your car may experience some normal 'wear and tear' from the extra driving - but you are compensated for this through the distance income (that is, the 25 cents you get for each kilometre a Borrower drives). 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 your car comes home with a bit of a scuff on the hubcap or a small scratch on the door, it's not going to be considered 'damage' that requires repair. It's just part of the car leading a full and valuable life, being out and about doing what it's made for. Wear and tear is not covered under our insurance policy. 

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

(If it's an actual ding, then of course we'll make sure that the Borrower and / or insurer pays to fix it.)

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.


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