A new car-sharing service is coming to Newfoundland and Labrador just in time for the tourism season, but many people are asking questions about how the system will work in terms of insurance.

PC MHA Loyola O’Driscoll says he is hearing of confusion and concerns about the lack of insurance options available in Newfoundland and Labrador, resulting in high premiums and people being denied coverage. He says there are concerns about how the Turo insurance will interact with personal insurance.

Chief Marketing Officer at Turo, Andrew Mok, says in Newfoundland and Labrador they’re providing insurance through Economical Insurance.

For hosts, he says they offer $2-million in liability coverage for every single trip, as well as physical damage coverage for up to the full cost of the car with no deductible. He says insurance options for guests are similar to what they’d see with a traditional car rental company.

As for some people’s insurance companies denying coverage if they choose to rent their vehicles, he says they have run into that issue before and it comes down to educating the other insurance companies.

He says when a car is booked for a trip on Turo, the owner’s personal insurance is unaffected, and it’s the Turo insurance that takes over during that time. He says once the insurance companies are informed of that they are usually willing to move forward.

The company says they are currently speaking with Intact insurance and are working their way through the top providers in the province.