This is it, you’ve decided to take the plunge into self-managed car-sharing! Either because you’ve decided to share your own vehicle with someone else, or because you’re looking for someone to lend you their vehicle.
Congratulations on your choice! Car-sharing is an excellent way of optimising the use of your vehicle, reducing your transport costs and contributing to a less vehicle-intensive environment. Whether you own a car you’d like to share, or you’re looking for a car to borrow, this method has many advantages. Car-sharing not only allows you to save on fuel and maintenance costs, but also to strengthen your community ties by sharing journeys with trusted friends and neighbours.
Finding the right person to share your car with
So the first step is to find someone willing to make a commitment. Although Co-oto is currently developing a car-sharing platform, it’s not ready yet and it will be some time before you can use it… but in the meantime, you might be surprised to see how many people around you would be prepared to take up car-sharing!
Sometimes a message posted in the hall or lift of your building with your contact details can be enough to arouse the curiosity of your neighbours. A post on the social networks or a discussion with your friends could also reveal your future car-sharer.
The advantage of this method is that you’re talking to people you know and trust, who will make it much easier to communicate with you about your car-sharing scheme!
Initial vehicle inspection
Start with a thorough initial inspection: carefully inspect the interior and exterior of the vehicle, take photos to document its initial condition, and make sure the vehicle is suitable for your needs before you take the plunge.
Then, before each journey, take a quick look around. If something seems strange, it’s important to tell the other user as soon as possible; communication is vital to ensure everyone’s safety, but also to maintain trust between users!
Drawing up the terms and conditions of your car-sharing contract
Once the right people are gathered around a vehicle, it’s important to put everyone’s expectations on the table. Discuss all aspects, without taboos. It’s important to communicate the financial aspects, in particular, which require a certain amount of anticipation and decisions to be taken in advance.
- Costs to be shared: Which costs will be shared between the two users, or which will remain the responsibility of the vehicle owner? Are you going for monthly billing or a form of statement to be reset from time to time without a fixed deadline?
- Deposit to be paid: Depending on your insurance coverage, it may be advisable to agree on a deposit to be paid to the owner in the event of a deductible. How much is it?
- Termination: Can the owner cancel at any time or at the end of the month? If so, specify this in your contract.
Fines: Although this goes without saying, it’s important to clarify that the driver who is driving the vehicle is responsible for paying parking or speeding fines. - Time slots: What are the time slots during which one driver or the other must have priority, for work, for example, or because they have to take a child to school? Does the borrower have to make a request every time they use the vehicle, or can they use it without requesting one if the vehicle is marked as available in the app?
- Vehicle Maintenance: Is the borrower expected to proactively replace vehicle parts when needed, or is this a responsibility assumed by the owner?
Additional Drivers: Can the borrower have other members of their family drive? - Disagreement Procedures: Disagreements can arise, and it’s important to manage them in a structured manner. Define clear procedures from the outset, such as a meeting to discuss issues or the use of an external mediator. Document all agreements and discussions to avoid misunderstandings.
- Mediation and Arbitration: Having a written agreement on how to resolve disputes is essential. Include mediation and arbitration clauses in your car-sharing agreement. Mediation can help reach an amicable compromise, while arbitration offers a more formal solution in the event of a major dispute. These methods ensure fair and timely resolution of disputes.
At the beginning of a car sharing arrangement, these questions are worth writing down to avoid misunderstandings. We therefore recommend drafting a contract signed by both parties, outlining all the questions related to car sharing.
Find out about coverage in the event of claims related to sharing
Is the vehicle fully or partially insured? What is the excess payable in the event of an accident? It may also be prudent to take out additional insurance to cover the car share in the event of an accident while the borrower is driving the vehicle.
Covers for car sharing
When car sharing, it is crucial to understand the different types of insurance available:
Civil liability (CL)
In Switzerland, for example, third-party liability insurance (TL) is mandatory and covers damage caused to third parties. In the event of an accident, the vehicle is insured, regardless of who is driving it.
Occasional vs. Regular Loan
It’s important to distinguish between occasional and regular lending regarding some countries and insurances. If the loan becomes regular, it may be necessary to add the user as a secondary driver to your insurance policy.
Coverage extensions
For added security, consider coverage extensions like “third-party vehicle driver,” which covers damage to the borrowed vehicle and premium increases in the event of a claim.
Franchise and bonus protection
In the event of a claim, the insurance company may apply a deductible. Furthermore, without bonus protection, a claim can result in an increase in your premium. Consider purchasing bonus protection coverage to avoid this increase.
The safest solution to avoid any problems in the event of a claim is to contact your insurance company directly for information. We also invite you to consult our article where we detail this topic in the form of an FAQ.
Key sharing, payment methods and other final details
Once all these considerations have been addressed, there are a few final details to prepare when sharing a car with others:
- Key sharing: For example, do you have a spare key to lend, or do you want to make one? Do you want to agree on each other whenever one or the other needs the vehicle? Or a key locker in a relatively secure location so that each can access it at any time? These solutions all have their advantages and disadvantages, but from experience, we find that a spare key is the most flexible and secure solution.
- Parking: If you don’t have a fixed parking space, how can you inform each other when one of the drivers returns from their trip? Co-oto offers a feature that allows you to mark the vehicle’s location when it has been parked.
Payment methods: Determine how payments will be made to cover shared costs, such as gas and maintenance. Use mobile payment apps to streamline transactions or establish a regular reimbursement system to ensure fair distribution of fees. Paying with Twint can be an easy solution in this context.
An all-in-one tool to manage your car sharing
Co-oto is the perfect tool to make sharing your car with friends or neighbors easier. With our app, you can easily manage reservations, track trips, and split expenses fairly. Discover how Co-oto can transform the way you use and share your car.