Darwin City Car Rental

Can I Rent My Car to Someone?

If you’re an Australian car owner considering renting out his vehicle to make some extra cash, you’re not alone. In recent years, the concept of peer-to-peer car rental has gained significant popularity worldwide, and Australia is no exception. At this time of high inflation, you won’t be wrong if you are among one of those people thinking can I rent my car to someone?

Yes, you can rent out your car to someone through various car platforms and make money from the comfort of your home.

However, you need to ensure that your car meets their requirements and that you have adequate insurance coverage. By listing your car on the platform, you open up the possibility for potential renters in your local area to discover and book your vehicle easily for a certain period.

That’s not it; there is more. Territory Car Rentals has done extensive research to provide you with the basics, the legal aspects, the best car sharing platforms available, and how to go about renting your car in compliance with local regulations.

Can I legally rent my car to someone?

Yes, you can legally rent your car but before you decide to do, it’s essential to familiarize yourself with the legal implications involved.

In Australia, the practice of renting your car to people is known as peer-to-peer car sharing or private car rental. While this practice is generally permitted, certain rules and regulations must be followed to ensure compliance:

State Regulations

Investigate the specific regulations for car rental in your state or territory. Understand the legal requirements and ensure compliance with them. Some states might require you to register as a business or obtain specific permits to engage in car rental activities legally.


You need to make sure that your car is adequately insured. Traditional personal motor vehicle insurance policies may not cover commercial use or car rental. Speak to your insurance provider about your plans and explore options for commercial coverage or dedicated car rental insurance policies.

Safety Standards

Ensure that your car meets all the necessary safety standards and has valid registration and roadworthy certificates to show.

How can I rent my car to someone in Australia – Step By Step Guide

To begin with, you need to first get your vehicle registered and submit all the details to create an authentic profile. Wondering, Can I rent my car to someone Australia? Here are a few tips to get most of the car sharing without any hassle:

Step 1: Choose a Reputable Platform for Listing

With the proliferation of various car sharing services in Australia, facilitating the rental process and providing additional insurance coverage, opt for a well-established and trusted platform to ensure a smooth process. Keep in mind reviews, terms and conditions, and fees. (Have a look at our recommendations below)

Step 2: Share the Clear Condition of the Car

Be transparent on what you offer to have to steer clear dealings. The company might ask you to share pictures and inquire about its availability to fill in the form. Make sure you take attractive photos at all the right angles. Mentioning all the important details like its make, model, and year or any other significant detail can help you catch more renters.

Step 3: State the Right Price

Smart planning goes a long way. Don’t be greedy and before setting the rental price always consider the average rates in your local area in addition to the condition of your vehicle.

Step 4: Set Clear Terms and Conditions

Establish comprehensive terms and conditions for renters, including mileage limits, fuel expectations, and damage policies the very first day you register yourself you meet the renter.

Step 5: Screen Potential Renters

Many car-sharing platforms provide a screening process for renters to make the whole process easier. Additionally, you can communicate with prospective renters to gauge their reliability and be satisfied.

Step 6: Handle Payments

The car sharing platform usually handles the payment procedures for you. Before registering yourself, make sure you understand the platform’s payment process and fee structure as they charge a part of the total rental as their commission.

Requirements for Private Car Rental

What requirements must be met in order for me to legally rent out my car to someone? These can vary depending on the car sharing platform, but generally, your car should be in good working condition, have up-to-date registration, and pass a safety inspection. If you get all these checkboxes ticked, there won’t be any issue signing up.

  • Valid registration and CTP insurance
  • Flexible availability schedule
  • Car in good condition enough to ensure safe driving for renters
  • Vehicles available in the well-defined area where car sharing services operate
  • Not for people with criminal records or poor credit history
  • The car model should be from the year 2000 or later (may vary depending on the platform)
  • Well maintained and checked before renter picks up

Best Car Sharing Platforms in Australia

It is hard to pick one car sharing platform when you have so many options to choose from. To make the process easier, we have shared a brief table about their services and the benefits you can get:

PlatformTuroCar Next Door / Uber CarshareDriveMyCar
Availability in AustraliaMajor cities including Sydney, Perth, Melbourne, and Brisbane (9,500+ cities)Australia-wideAustralia-wide
Insurance CoverageProvided by Turo of $20,000,000Comprehensive insurance by KOBAup to $40,000,000 + APRA Approved
Average Annual Earnings for Car Owners$19.112$6,802$2,500
Number of Active Vehicles250,000+5,500+1,275+
Number of Active Guests2.3M+300,00049,000+
Vehicle Requirements• Must be at least 21
• Up to 10 years old
• Have run not more than 200,000 km
• Eligible plates and registered vehicle
• CTP insurance
• Market value of $20,000,000
• Not older than 2001
• Well maintained
• Value of $50,000 or less if listed in Victoria, or $60,000 or less in other states
• Power rating of less than 200 kilowatts
• Vehicle with at least 4 seats and not more than 12 seats
• CTP insurance
• Up to 15 years old car
• Has run less than 150.000 kilometers
• Below $75.000 in value
• well maintained
PricingAffordableStarting from $5/hrNot specified
Booking ProcessInstant booking through the appInstant booking through the appInstantly through the site

Tips to Make the Most of Your Car Sharing Income

Looking for ways to maximize your car sharing return? No worries here Lucky has shared his five proven tips that will help you have a steady income.

  1. Try to keep the car available for weekends without any breaks.
  2. Allow last-minute sharing, especially on weekends.
  3. Depending on your vehicle, set a competitive price keeping in mind other rental cars available in your area.
  4. Create an honest and engaging profile for your vehicle. Menton any extras like embedded GPS or TV to attract the audience. Take pictures of your car when it’s squeaky clean.
  5. Try to hook people as returning customers by providing them with a comfortable experience and additional features like phone chargers, GPS, and holders.

Frequently Asked Questions

Can I rent my car to someone who is not from the same country as me?

Yes, in Australia, you can generally rent your car to someone who is not from the same country as you. However, the renter must have a valid driver’s license that allows them to drive in Australia, and your car insurance policy should permit non-resident drivers or international renters.

Am I responsible for any parking tickets or traffic violations incurred by the renter?

In most cases, as the car owner, you are ultimately responsible for any parking tickets or traffic violations incurred by the renter during the rental period if he fails to pay. Thus, it’s essential to include provisions in the rental agreement that hold the renter accountable for such fines and violations.

What if the person I rent my car to gets into an accident?

If the renter causes an accident while using your car, your commercial insurance should generally cover damages and third-party liabilities. However, you may face potential premium increases in some cases, so it’s crucial to have a clear rental agreement outlining the renter’s responsibilities and prompt reporting of any accidents.

Take Away Pointers

  • Get a lockbox to provide renters with the convenience of accessing keys
  • Car sharing charges are per hour with additional charges for extra kilometres covered
  • Insurance and fuel charges are a part of the rental cost
  • You are responsible for changing tires and ensuring the tank is full at the time of giving it to the renter.
  • Have commercial insurance before you register yourself.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts