[rprasad]

The issues FlightCar faces are very different from those AirBNB faces.

For starters, auto insurance is mandatory in the U.S.; homeowner's insurance is not. Strict laws govern auto insurance coverage, liability, and claims. These laws vary by state. This means that accidents by a renter can affect no-claim policies in many states.

Second, as others have noted--cars are easy theft targets. Homes are not, and aside from a few high-dollar items like TVs or computers, neither are the contents of most homes. Assuming that FlightCar is able to find an insurer willing to cover this theft risk, the policy would start in the millions just for California-level coverage.

Finally, asset seizures are a far bigger problem with cars than with homes. A car used to transport drugs can be seized by the authorities and impounded. The laws are very generous to the authorities for drug-related asset seizures. For purposes of drug-related asset seizure laws, if a person is driving a car with permission of the owner (i.e., even as a rental), their actions are imputed to the owner for purposes of justifying seizure. (This maxim has been tested repeatedly in the courts.) In other words: if a renter transports drugs, gets caught, and your car gets seized, you're SOL. Insurers don't cover this at the personal level; even if they provide coverage to a business like FlightCar the policy would be prohibitively expensive.