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Understanding Minor Damage versus Wear and Tear

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).

The distance income compensates you for fuel, tyres, servicing and general wear and tear, based on the RACV's calculations of the average running costs for a medium-sized car.

If your car comes home with a bit of a scuff on the hubcap or a hairline 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! But if it's an actual ding, then of course we'll make sure that the Borrower and / or insurer pays to fix it. 

It's important to be aware of the difference between 'damage' and 'wear and tear', so that you'll know when to report damage. This is described in detail in the Car Next Door Damage Policy.  

If you have any questions about how this works, please give us a call. 

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