It may be illegal to rent out your car on your own where you live. Even if it is legal, a worst-case scenario might cost you hundreds of thousands of dollars.

You’ll likely be blocked from signing up with one of these companies if they don’t operate where you live. This is for the best, as the insurance package they provide would likely not cover you.

Contact the bank, financing agency, or other lender—in other words, the company that you send your car payments to—in order to get clarification as to whether you can rent out your vehicle. Ask them specifically, “Is it a violation of my financing agreement to rent out my car for money to other drivers?”

Each U. S. state individually regulates auto insurance companies, so the coverage requirements for peer-to-peer rentals varies widely. Whenever it’s being rented, your car will be covered by the insurance policy provided by the peer-to-peer rental company. The only exception is if you waive this coverage because you already have car insurance (such as a commercial policy) that covers this scenario.

The most important thing is to be clear that you’ll be covered by the company’s insurance policy if your car gets into an accident while being rented. Make sure you’re clear on any exclusions or limitations to the coverage being offered.

Not all cars make the cut. Most companies list only newer model cars, such as those less than 10 years old, and have mileage and condition restrictions.

Document in detail now so you can more easily prove damage caused by rental drivers later.

You can typically set the rental price yourself as desired. However, some companies may encourage you to instead use a specified dynamic pricing model that raises and lowers the rental price for your vehicle based on factors like overall demand. Weekends and holidays tend to produce higher demand, so you can expect to attract more renters and higher rental rates if you make your car available during those times.

In 2017, for instance, people who listed their cars on Turo earned an average of $720 USD per month ($8,640 per year). Full-day rental rates tend to run in the $10-$100 USD range. Remember to factor tax benefits into your earning potential as well. In the U. S. , you may be eligible for a per-mile federal tax deduction while your car is being rented. If, for instance, renters drive your car for an average of 100 mi (160 km) per week, you might earn a deduction approaching $3,000 USD. [10] X Research source

While it’s more convenient to make your home the transaction site, it’s safer to choose a public location—like the parking lot of a busy shopping center—for both the drop-off and pick-up. In exchange for the extra safety, you’ll have to arrange to get a ride from someone else!

You’re not obligated to hand over the keys if you have legitimate reasons for concern. Cancel the exchange and contact the rental company right away. No money should exchange hands. That’s all handled by the rental company.

Always report any problems before renting out the car again, and within 24 hours if at all possible. Because your car is covered by the insurance policy offered by the rental company (while it’s being rented), you’ll have to work with the company’s insurer to make claims and get repairs done.

If, for example, you live near a major toll road that uses license plate photos to charge tolls, you may end up footing substantial bills. The company can ban the person from renting again, but that’s usually about it.