OnStar Rental System Turns Texts Into Tickets to Ride

Owners of GM vehicles subscribe to the automaker's OnStar service can now rent their vehicles to other people when they're not use.

RelayRides is the first third-party developer integrate with OnStar's proprietary application programming interface (API). The API will be available to other devs later summer.

Vehicle owners set the rental rates and collect 60 percent of take; San Francisco- RelayRides takes the rest.

RelayRides takes a US$1 million liability insurance policy vehicles rented out. The vehicles are completely covered physical damage up to their actual cash .

Only vehicles that built in 2000 or later, have less than 120,000 miles the odometer, and all legal requirements for vehicle safety, conditions and operations, can listed for rent.

Car owners list their vehicles the RelayRides site. The company notifies them of reservation requests and awaits their approval after checking the renter.

The owner hands over the key manually to the renter or RelayRides sends the renter a text message lets the renter unlock the vehicle using OnStar.

Renters pick the car want after searching the RelayRides site, pick the keys or get the text message then unlock the car using OnStar their mobile phones. Then they're free to the road.

RelayRides provides insurance coverage and 24/7 roadside assistance renters.

Vehicle owners get 60 percent of reservation fee, 100 percent of any gas charges, excess mileage charges, and 50 percent of any files levied renters because of policy violations. RelayRides sends vehicle owners check every month.

Crime and Punishment

RelayRides reimburses owners charges such as towing fees and parking that are incurred by renters.

"If a renter receives a ticket during their reservation time within 24 hours of the return time, it is the renter's responsibility pay it," Shelby Clark, founder and chief community officer of RelayRides, told TechNewsWorld. "If the renter notifies us they are going to care of the ticket, they will not be charged additional administration fees as as they pay it promptly."

If, on the other , the ticket is received by the owner who hands it to RelayRides, the company will charge the to the credit card used by the renter and may add an administration fee.

Further, if a renter gets tagged a DUI or is involved in an accident or other violation, that driver may removed from the RelayRides community depending the violation, Clark said.

The Darker Side of Renting

The system some interesting questions. For example, if a renter gets an accident, will that go on the vehicle owner's driver's or insurance record? Who's responsible if the vehicle's used the commission of a crime?

If a renter gets an accident, the insurance policy provided by RelayRides will kick , leaving the personal policy of the vehicle's owner untouched, the company's Clark said. "The owner's policy likely has a specific exclusion coverage for when someone rents out their car, is precisely why RelayRides has purchased this insurance policy our owners."

However, things might not always quite that smoothly. The owner of a vehicle rented out RelayRides in Massachusetts has been dragged an insurance claim filed the company because she was the owner, Boston Injury Lawyer reported. The renter was killed a collision with another vehicle in February and three other people seriously injured. It's not clear whether or the owner will have to accept liability and have pay out money. The law in Massachusetts, at , is not clear on what personal liability goes to the owner in a case.

"The potential risks involved in of wear and tear, possible damage and liability would outweigh the benefits me," technology analyst Charles King told TechNewsWorld.


Adapted and abridged from: technewsworld.com, July 18, 2012.