08/24/2010 11:43 am ET Updated Dec 06, 2017

Whipcar: New Service Allows You To Rent Out Your Own Car (VIDEO)

In over 300 towns across Britain, drivers are renting privately-owned vehicles using a new service called WhipCar.

"The car is typically a person's most valuable latent asset. It's typically used for less than an hour a day, but the cost of owning that car is over 5000 pounds [$7,700] a year whether you use it or not," Tom Wright, co-founder of WhipCar told Reuters. "So we thought, can we design a service that gives people the benefit of using a car even if they don't have one, and the benefit to people who have a car but don't use it all the time?"

On WhipCar's site, owners post their vehicle and name their rental price, while drivers browse vehicles in their area and make offers for short-term renting, which owners can accept or turn down. As for security, the company performs background checks on potential drivers, and issues an insurance policy that's added onto owner's insurance during the rental period and is paid for by the renter.

WATCH Reuters' video below to see how the service works: