What are the insurance implications of car sharing?
You must be fully insured and it is advisable to inform your insurance company that you are registered in a car share scheme. This should not incur additional costs. Most insurance policies cover you to carry passengers on your journey to work, as long as you don’t charge your passengers more than the running costs of the vehicle. The Association of British Insurers clearly states that car sharing won’t affect the insurance of their members so long as a profit isn’t made. ‘Giving Lifts – All ABI motor insurers have agreed that if your passengers contribute towards your running costs your insurance cover will not be affected, as long as lifts are given in a vehicle seating eight passengers or less. This agreement does not apply if you make a profit from payments received or if carrying passengers is your business’ (Source ABI website, 2005). Drivers with any concerns should check with their insurance company as terms and conditions may vary between insurance providers over time.
