I listed my Onewheel on FriendWithA to make some extra cash. A renter took it out, crashed into a parked car, and broke the board. My personal insurance denied the claim immediately because it was a “business transaction.” I looked at FriendWithA’s guarantee, and it was more complicated than I thought.
Key Takeaways
- Commercial Use Exclusion: Your personal insurance (Renters/Specialty) strictly excludes coverage while the item is being rented to others for money.
- Platform Guarantee: Platforms like FriendWithA or Spinlister offer their own “coverage,” but it acts as secondary or excess insurance. You often have to prove your primary denied it first.
- The Deductible: The platform usually has a high deductible (e.g., $100 or 10% of value) that comes out of your earnings.
- Liability is the Real Risk: If the renter kills someone on your board, you (the owner) can be sued for “negligent entrustment” (renting a dangerous vehicle to an unskilled rider).
The “Why” (Rental Business)
You are effectively a rental car company. Personal policies do not cover rental fleets.
“We do not cover property while in the custody of others for the purpose of rental or lease.”
The Investigation: The Platform’s Promise
I dug into the terms of FriendWithA (FWA) and Spinlister.
1. Personal Specialty Policy
- Status: Void. The moment the rental starts, your coverage ends.
2. FriendWithA “Insurance”
- Status: Good Property Coverage. They guarantee the item value if damaged/stolen by the renter.
- Liability: They verify the renter, which helps, but check if they provide Liability insurance for you if the renter crashes into a pedestrian. (Often they do, up to a limit).
3. Spinlister
- Status: Similar. Offers protection for the bike/board up to $5k or $10k.
Comparison Table
| Scenario | Personal Policy | Platform Protection |
| Renter Steals It | No | Yes |
| Renter Crashes It | No | Yes |
| Renter Hits Pedestrian | No | Maybe (Check Terms) |
Step-by-Step Action Plan
- Trust the Platform Only: Do not do cash rentals off-app. If you go off-app, you have ZERO insurance.
- Video Documentation: Take a video of the board working perfectly before handing it over. Renters often claim “it was already broken.”
- Check Liability Limits: Ensure the platform covers you for liability. If not, don’t rent out dangerous PEVs.
FAQ
Can I rent it to a friend for cash?
No insurance covers this. If they break it, you lose a friend and a board.
[IMAGE: Screenshot of a rental listing on an app with an “Insured” badge]