Carpooling to save in fuel? Did you know that carpooling could impact your car insurance? Here’s why…
Here’s everything you need to know about vehicle insurance and carpooling
With the price of petrol always going up (with the odd decrease) and the increase in traffic on our roads, it is no wonder that so many of us have started carpooling.
Carpooling (catching a ride with a friend to work where you both take turns in whose car you use or who drives) is great for saving in petrol, helps keep you company in traffic and can even make a difference in decreasing your environmental impact on the planet in decreasing the fumes released into the atmosphere - if everyone carpooled there would be fewer cars on the roads!
Carpooling really is a great way to save money and time but you need to understand how it can impact your car insurance, here’s what you need to know…
The different kinds of carpooling
1. Alternating carpooling
This kind of carpooling is where everyone will take a turn to drive their own car on a daily, weekly or even monthly basis. This means that when it is your turn to drive, you pay.
When you are a passenger, it is free.
In this event, no money will be exchanged and each driver will be responsible for their own maintenance costs and insurance. Passengers will need to claim from the Road Accident Fund in the event of an accident causing bodily harm to them.
2. Specific driver carpooling
In this kind of carpooling, there is a designated driver and car and the passengers will make a weekly or monthly rate towards petrol, maintenance and parking.
This amount should not be higher than the SARS Reimbursement Travel Allowance - this means that no profit is made. Passengers should also be informed that they will not be able to claim from you in case of an accident, they will have to claim from the Road Accident Fund.
3. Side hustle carpooling
There are some great apps out there lie Carpool, where you could use these to earn some extra cash on your trips where strangers can share a ride with you.
But this amount paid to you cannot earn you a profit and should not exceed the SARS Reimbursement Travel Allowance. Passengers will still need to claim from the Road Accident Fund in the event of a claim.
4. Employer carpooling
This kind of carpooling is when an employer offers you as staff members the use of their company vehicle where you might have to pay a fare to cover petrol, insurance and the costs of maintenance.
How does carpooling affect my insurance?
No matter what form of carpooling you all under, it is always wise to let your insurer know if you have made any changes to the agreed upon driver set up you initially will have stated when getting your insurance.
For example, if you are involved in an accident and the designated driver of your car is not the regular driver, then your claim might be rejected.
Like we always say - honesty is our best insurance policy - so just make sure you keep us up to date on any changes to your policy.
If you are carpooling and using somebody else’s car every day, then this might result in you driving your own car a lot less. If this is the case, then let us know as driving your car less means you are on the roads less and your chance of being in an accident is decreased, this means your premium might decrease too!
At Oneplan, we have specific events that you are not covered for and receiving payment from lifts or profit is one of them.
If you are carpooling to save money, then why not give us a call and see how we can save you even more money in vehicle insurance?
The best part is that we let you choose how much cover you want at the price you can afford and all of our cover options are comprehensive!
Yours in uncomplicated car insurance,