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How Does Zipcar Work? Everything Your Need to Know About Car-Sharing Insurance



While you may not be able to afford your own car, or may not see the need to own one in an urban area, there are ways to get the transport you need. Zipcar has changed the game, allowing for people with a valid driver’s license to gain access to a car nearby by way of a mobile app. This allows a driver to control their trip themselves, not having to rely on Uber, Lyft, or taxis to get where they need to go. Let’s take a closer look at what Zipcar has to offer.

Zipcar Membership

You’re probably asking yourself “How does Zipcar work?” Through an app, a member with a valid driver’s license has the ability to reserve and then pick up their rental car from a designated Zipcar location. These have commonly popped up on college campuses across the United States, as well as gas stations or areas with a significant public transit system. Your Zipcar vehicle can be used for just a ride to work or even to make the drive out of town.

It’s important to know that these Zipcar reservations are protected by insurance coverage. However, this is usually minimum insurance protection. The person in the driver’s seat could very much be held accountable for negligence behind the wheel, paying far more than the daily rate for Zipcar. Zipcar Insurance caps their coverage at as much as $300,000 for those in good standing with their credit score and license. This will provide drivers with some form of collision coverage.

Car Sharing Insurance

In order to have insurance through Zipcar, all you need to do is provide your payment information with a credit card through one of the major providers. For Zipcar drivers, you’ll have a $1,000 limit for property damage, as well as some additional comprehensive auto insurance protection. Drivers under 21 may be held to state-regulated insurance limits, which is important to consider if you’re a college student who finds a Zipcar available on their campus. It’s essentially a young driver fee. That coverage ends once the reservation ends.

Zipcar’s coverage caps at around $300,000 per accident. While you may not have multiple insurance options at your disposal as you may get through certain rental car companies, it’s more than enough to cover property damage to any type of vehicle through the Zipcar app. However, it’s recommended that drivers avoid any potential hassle down the line by investing in personal lines insurance coverage. This assures that even a drive through the neighborhood is further protected from costs for any injuries suffered by others while you’re behind the wheel.

Car Share vs. Car Ownership


When looking into car share insurance, this provides coverages on an as-needed basis regardless of a one-way trip or through select cities. If you don’t drive a lot, allowing your vehicle to be used by Zipcar subscribers could save you some money but you want to make sure you have the right insurance to protect your car from the weekend adventures of others. Remember, car sharing is not ride-sharing. Zipcar is not Uber. Uber drivers are doing just that, driving, and being responsible for what happens behind the wheel.

A typical car share policy carries up to $1 million in liability coverage, differing from what may be required by Uber or Lyft for ride-sharing. Some parts of the U.S. may require uninsured motorist coverage to allow Zipcar users to drive a car with just a valid license. Vehicle owners may also invest in rental personal injury protection that doesn’t exceed the minimums required in the state. Most important of all is having comprehensive coverage for a Zipcar vehicle to be able to make repairs to any part of the vehicle.


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