Peer-to-peer car sharing lets private vehicle owners rent their cars directly to other people through an online platform. Think of it as Airbnb for cars: instead of renting from a traditional company like Enterprise or Hertz, you borrow someone’s personal vehicle for a day, a weekend, or longer. The industry is valued at roughly $2.77 billion in 2025 and is growing at over 21% annually, expected to reach $8.82 billion by 2031.
How a Booking Works
The platforms that power peer-to-peer car sharing don’t own any vehicles. They build the marketplace, handle payments, and provide insurance coverage, while individual car owners (called “hosts”) list their vehicles and set their own prices and availability. As a renter, you browse listings by location, date, and vehicle type, then submit a booking request or instantly reserve a car depending on the host’s settings.
Before the trip starts, the platform verifies your identity and driving record. On Turo, the largest platform in the U.S., hosts confirm that the name and date of birth on your physical driver’s license match your reservation, that your license isn’t expired or restricted, and that your face matches the photo. Digital licenses aren’t accepted, and neither are learner’s permits or international driving permits used as a standalone ID.
Pickup can happen in person, where the host hands you the keys, or remotely through a lockbox or connected car technology that lets you unlock the vehicle with your phone. You drive it for your reserved period, return it with the agreed-upon fuel level, and the platform processes payment to the host.
What Hosts Earn
Turo reports that cars on its platform earn an average of $906 per month in gross revenue. The host keeps about 70% of that, netting roughly $634 per month per vehicle. The remaining 30% goes to the platform or, in some arrangements, to a co-host who manages the car on the owner’s behalf. Hosts set their own daily prices, so earnings vary widely depending on the vehicle, location, and seasonal demand. A basic sedan in a mid-size city will earn far less than a convertible in Miami during spring break.
Costs to consider as a host include increased wear on your vehicle, cleaning between trips, and the time spent communicating with renters and coordinating pickups. Some hosts scale to multiple vehicles and treat it as a small business, while others simply list the car that sits in their driveway on weekdays.
Insurance During a Trip
Insurance is the most complex part of peer-to-peer car sharing, and it’s where the model differs most from borrowing a friend’s car. During an active rental period, the platform is required (in states with specific legislation) to ensure that both the vehicle owner and the driver are covered by a liability insurance policy at minimum levels, typically at least double the state’s standard minimums for bodily injury and property damage.
That coverage can come from the owner’s personal auto policy, the renter’s own insurance, a policy provided by the platform, or some combination of the three. Platforms like Turo offer tiered protection plans that renters or hosts can purchase through the booking. If the owner’s personal insurance has lapsed or doesn’t cover car-sharing use, the platform’s policy kicks in from the first dollar of a claim. And if there’s a dispute about who was driving when an accident happened and the platform can’t produce trip records, the platform assumes primary liability.
One important detail: your personal auto insurance may not cover commercial rental activity. Before listing your car, check whether your policy excludes peer-to-peer sharing. Some insurers now offer endorsements or riders specifically for this purpose.
Major Platforms
Turo dominates the U.S. market. As of late 2022, the platform had over 160,000 active hosts offering more than 320,000 vehicle listings, with over 3 million active renters who collectively booked more than 19.1 million rental days. The platform operates across the U.S. and in select international markets.
Getaround, the second largest player, had over 1.7 million unique guests and 72,000 active cars across more than 1,000 cities in eight countries, including the U.S. and several European markets. Getaround leans more heavily on connected car technology for keyless access, which makes it popular for shorter, spontaneous rentals in urban areas.
The variety of vehicles is one of the biggest draws for renters. Unlike traditional rental companies that stock rows of identical sedans and SUVs, peer-to-peer platforms list everything from Teslas and Jeep Wranglers to classic muscle cars and camper vans.
Taxes and Fees Vary by State
Peer-to-peer car sharing exists in a regulatory gray zone in many places, but a growing number of states have passed laws that specifically define and tax it. The tax treatment differs significantly depending on where you live.
Oklahoma applies a 6% vehicle rental tax to peer-to-peer transactions, matching its rate for traditional rental cars. Arkansas charges 10%. New Hampshire folds car-sharing rentals into its 9% meals and rooms tax. Hawaii stacks a $5 per day surcharge on top of its general excise tax. Florida takes a lighter approach, charging $1 per day for peer-to-peer rentals compared to $2 per day for traditional rental cars, plus sales tax.
Some states scale their tax rates based on fleet size. In Virginia, hosts with fewer than 10 cars pay a 7% tax, while those with 10 or more pay 10%, matching the state’s standard rental car excise rate. Maryland follows a similar tiered structure at 8% and 11.5%. New York layers on multiple assessment fees totaling 6% or more, covering general, regional transportation, and metropolitan commuter district charges.
Airport pickups add another layer. Most airports charge facility access fees to rental car operations, and some have extended those fees to peer-to-peer platforms. If you’re picking up a car at or near an airport, expect a surcharge.
How It Compares to Traditional Car Rental
The core advantage for renters is often price and selection. Peer-to-peer rentals can undercut traditional agencies, especially for longer trips or in markets where rental car supply is tight. You also get a much wider choice of vehicles, which matters if you want something specific for a road trip or a special occasion.
The tradeoff is consistency. A rental car from a national chain comes cleaned, inspected, and maintained to a corporate standard. A peer-to-peer vehicle depends on how well the individual owner cares for it. Platforms use rating systems and reviews to surface quality issues, but experiences can vary. There’s no counter agent to swap your car if something feels off.
For vehicle owners, the comparison is straightforward: your car depreciates whether you drive it or not. Peer-to-peer sharing turns an idle asset into income. The barriers to entry are low since you’re listing a car you already own, versus the massive capital investment a traditional rental company needs to build and maintain a fleet. That low startup cost is also what makes the business model attractive to the platforms themselves, which scale by adding hosts rather than purchasing vehicles.