Hawaii residents seeking to earn some extra cash have been renting out their own vehicles at hourly, daily and even long-term rates.

Call it the informal economy or underground marketplace. But it’s in synch with a growing trend in which people are renting out everything from their lawnmower to salad spinner. 

Web sites like Craigslist and RelayRides are helping cultivate the marketplace for personal car-sharing services. A quick search of the sites, shows a cream Volkswagon Beetle offered for $89 a day. For those strapped for cash, there’s a Haleiwa cruiser, with “cosmetic problems,” that rents for just $20 a day or $120 for the week.

However, the state’s Department of Commerce and Consumer Affairs is warning both those that rent their cars, as well as the renters themselves, that they should be cautious and check with their auto insurance policies first. 

Either party could find themselves on the hook for major damages or costs associated with injuries if there is an accident. 

“Companies or individuals who are not in compliance with state motor vehicle insurance laws or with Hawaii’s Motor Vehicle Rental Industry law may run significant risks if that vehicle is involved in an accident,” Office of Consumer Protection Executive Director Bruce Kim said in a press release. “They could suffer significant adverse financial consequences as a result.” 

DCCA stressed that the consumer warning applies to car-sharing programs where people rent out their own vehicles, and not to car rental companies such as Avis or Zipcar.

Photo: random car (Flickr: JoshBerglund19)

— Sophie Cocke