Beware of Hiring Out Your Car
Car sharing, which includes ride-share services like Uber and HiyaCar, can earn car owners an average of £116 a week. Due to its ease of use and availability, car sharing grew by 23 per cent between 2013 and 2015, according to PricewaterhouseCoopers. However, depending on how much a car owner earns, he or she could experience some costly and unexpected insurance implications.
According to the Association of British Insurers (ABI), a standard motor insurance policy should allow you to collect funds from passengers for journey costs, such as fuel and vehicle depreciation. What a standard policy does not allow for is for the driver to make a profit from the payments received from the passengers, as this would be classified as a business. In addition, hiring out your car is also problematic, as the name of the renting motorist is not on the car’s insurance form.
If you are interested in participating in car sharing, speak to Saffron to ensure that your policy is appropriate.