Direct Rentals 101: How Car Share Fleet Owners Can Rent Cars Without a Platform – and Stay Fully Insured
If you’re renting vehicles on Turo or similar platforms, you’ve probably wondered: What if I could rent directly to customers and skip the platform fees?
The short answer: You can – and thousands of fleet owners are already doing it profitably.
The challenge has always been insurance. Platform rentals come with built-in coverage, but the moment you rent outside those platforms, you’re on your own. Until recently, that meant direct rentals were either impossible or financially risky.
Not anymore.
What Are Direct Rentals in Car Share?
Direct rentals (also called peer-to-peer or P2P direct rentals) are when you rent your vehicles directly to customers without using a platform like Turo as the middleman.
Instead of:
- Customer books on Turo → Turo takes 25-35% commission → You get paid
You have:
- Customer books through your website, social media, or referral → You set the terms → You keep 100% of the revenue
Direct rentals give you complete control over pricing, rental terms, customer relationships, and most importantly – your profit margins.
Why Car Share Vehicle Owners Are Moving to Direct Rentals
1. Keep More Revenue
Platforms charge 25-35% in fees. On a $100/day rental, that’s $25-35 going to the platform. For a 10-vehicle fleet averaging 20 rental days per month per vehicle, that’s $5,000-7,000 in monthly fees you could be keeping.
2. Build Your Own Brand
When you rent on platforms, you’re building their brand. With direct rentals, you own the customer relationship. Repeat bookings, referrals, and reviews all benefit your business.
3. Set Your Own Rules
No platform restrictions on mileage limits, rental duration, driver age requirements, or cancellation policies. You decide what works for your business model.
4. Diversify Your Income
Platform algorithms change. Policies shift. Fee structures increase. Direct rentals reduce your dependence on any single platform and protect your business from factors outside your control.
The Insurance Challenge (And How It’s Solved)
Here’s the issue that used to stop most car share vehicle owners from offering direct rentals:
Platform insurance only covers platform rentals.
If you rent outside Turo, their insurance doesn’t apply. Your personal auto policy won’t cover commercial rentals. Traditional commercial policies are expensive and inflexible.
This left fleet owners stuck: either pay platform fees forever, or risk operating without proper coverage.
Enter Period Z On-Rental Insurance
Period Z is the revolutionary on-rental insurance specifically designed for direct car share rentals. Combined with Period X™ off-rental coverage, it creates the first complete insurance solution that protects your vehicles whether you’re renting on platforms, directly to customers, or both.
How it works:
- Your Period X™ policy covers vehicles when they’re not rented (in your lot, being cleaned, in maintenance)
- Book the days you are renting the vehicles on Period Z (You only pay for Period Z on days you need)
- You’re fully insured for direct bookings, cross-platform rentals, and everything in between
This is the breakthrough that makes direct rentals practical and profitable.
How to Start Offering Direct Rentals (The Basics)
Step 1: Get the Right Insurance
Start with Period X™ + Period Z coverage. This ensures you’re protected off-rental and have on-rental insurance ready to activate whenever you book a direct rental.
Step 2: Create Your Rental Process
You’ll need:
- A rental agreement/contract (templates are available online or through legal services)
- A system to verify driver’s licenses and identities
- A payment processing method (Venmo, Zelle, Square, or stripe for cards)
- A booking calendar to track availability
Step 3: Set Your Pricing
Research what similar vehicles rent for in your area on platforms, then price competitively. Remember: even if you charge 10-15% less than platform prices, you’re still keeping significantly more profit after eliminating platform fees.
Step 4: Find Your First Customers
Start with:
- Friends, family, and personal networks
- Social media (Facebook Marketplace, Instagram, local community groups)
- Your existing Turo guests (build relationships, offer direct booking discounts)
- Simple website or landing page with contact information
- Google My Business listing for local search visibility
Step 5: Activate Coverage and Rent
When you have a booking, log into your ABI fleet portal, select the vehicle, enter rental dates, and activate Period Z coverage. The vehicle is now insured for that rental period.
Direct Rental Best Practices
Screen Your Renters
Since you are acting as the rental company, you need to verify the renter’s identity and license validity:
- Valid driver’s license
- Clean driving record (you can request this)
- References or previous rental history
- Payment verification before handing over keys
Use a Contract
Always use a proper rental agreement or contract for every private booking.
Document Everything
Take photos of the vehicle before and after each rental. Document mileage, fuel level, and any existing damage. Have renters sign the rental agreement and inspect the vehicle with you.
Use GPS Tracking
Period X™ requires GPS tracking, which also protects you during direct rentals. You’ll know where your vehicle is at all times and can set geofencing alerts if it leaves approved areas.
Build Relationships
Unlike platform transactions, direct rentals let you build real customer relationships. Great service leads to repeat bookings, referrals, and higher utilization without paying acquisition costs.
Common Questions About Direct Rentals
Is this legal?
Yes, as long as you have proper commercial insurance (like Period Z) and follow local regulations regarding rental agreements and taxes.
What if the renter damages the vehicle?
Period Z covers accidents and damage during rental periods, just like platform insurance. You’ll file a claim through ABI’s claims process.
Do I need a business license?
Requirements vary by state and city. Many fleet owners operate as sole proprietors or LLCs. Check your local regulations.
Can I do both platform and direct rentals?
Absolutely. Most successful fleet owners use a hybrid model: platforms for consistent baseline bookings, direct rentals for higher-margin opportunities.
How do I handle taxes?
Direct rental income is taxable. Keep detailed records of income and expenses. Consider working with an accountant familiar with car rental businesses.
Is Direct Rental Right for Your Fleet?
Direct rentals make the most sense if you:
- Have at least 3-5 vehicles (enough volume to make marketing worthwhile)
- Are comfortable managing customer interactions and bookings
- Want to reduce platform dependency and build long-term business value
- Have time to dedicate to marketing and customer acquisition initially
- Are looking to maximize profit per vehicle
If you’re just starting with 1-2 vehicles, platforms might be easier initially. But as you scale, direct rentals become increasingly attractive for the revenue and control they provide.
The Bottom Line
Direct rentals aren’t about abandoning platforms entirely – they’re about having options. Whether you are renting to a local hotel guest or a gig worker, the most successful car share fleet operators use multiple channels: Turo, Trip City, RentID or others for consistent volume, direct bookings for higher margins, and the flexibility to shift between them based on demand.
With the Period X™ car share insurance suite, you finally have the coverage to make direct rentals work safely and profitably. No more choosing between platform fees and insurance risk. You can have both protection and profit.
Ready to start offering direct rentals?
Ready to Break Free from Platform Lock-In?
The carshare market is evolving. Don’t let your insurance hold your business back. Stop turning away direct rentals and start maximizing your revenue with the only insurance suite that gives you total freedom.
Frequently Asked Questions
Do I need GPS tracking?
Yes. To offer this level of flexible, usage-based insurance, we require GPS tracking on your vehicles. This ensures accurate billing and helps protect your assets. We integrate with most major GPS providers seamlessly.
Can I still use Turo insurance if I have Period X™?
Yes. You can use Period X™ for your off-rental needs and stick with Turo’s protection plan for Turo trips if you prefer. However, using Period Z allows you to diversify outside of Turo whenever you choose.
How quickly can I get covered?
Fast. You can sign up online and get your fleet covered in minutes.
Questions? Call us at 805-454-7664
Our agents are available 8am-8pm ET, Monday-Friday
Period X™ and Period Z are offered by American Business Insurance Solutions (“ABI”), a subsidiary of INSHUR, the leader in embedded insurance for the on-demand economy. Coverage availability and pricing varies by state.