Car Next Door, which Uber bought in January, has partnered with Melbourne-based insurtech Koba to offer its members comprehensive insurance uniquely designed for car sharing.

Car Next Door enables car owners to list their private vehicle for rent at times when they have no use for it.

Members can pay Koba upfront to cover the car for incidents like theft, fire and hail while it is parked, as well as a few cents for each kilometre driven. In this way, owners get comprehensive coverage for their car while it’s parked between bookings.

“Some personal comprehensive insurance policies don't allow you to rent your car out – and policies that do, can cost you an arm and a leg,” Koba said.

“When your car is on a Car Next Door booking, it's covered for damage and loss but what about cost-effective insurance cover for your own driving, and to protect your car while it's parked? That's where Koba comes in.”

Koba, which is underwritten by Eric Insurance, says its product is uniquely designed with Car Next Door for car sharers, offering “pay-per-km insurance for people who share their car and need cover between bookings”.

It is only available for cars using integrated “Instant Keys” GPS technology which by automatically switching between Koba and Car Next Door, distinguishes when the car is used for personal use and measures the distance driven.

“Synced with our Instant Keys technology, Koba distinguishes when your car is used for personal use so they only charge for the insurance you use,” said Car Next Door, which was co-founded in Australia by Dave Trumbull and Will Davies in 2012.

The platform offers convenient access to cars and revenue to car owners, making it easy to turn any car into a shared car. It operates Australia-wide.

Uber says it offers a reliable option for trips that are less suited to rideshare, such as “running errands at the hardware store or a day trip away”. Uber is investing in electric vehicles, micromobility, and public transport to reduce over-reliance on the private vehicle and “help achieve greener, more livable cities”.