Insurance implications of car sharing

There should be no insurance implications for normal car sharing arrangements - though it is always best to let your insurer know.

MOTOR CONFERENCE UNDERTAKING

The receipt of contributions as part of a car-sharing arrangement for social or other similar purposes in respect of the carriage of passengers on a journey in a vehicle insured under a private car policy will not be regarded as constituting the carriage of passengers for hire or reward (or the use of the vehicle for hiring) provided that:-

• (a) the vehicle is not constructed or adapted to carry more then eight passengers (excluding the Driver);
• (b) the passengers are not being carried in the course of a business of carrying passengers;
• (c) the total contributions received for the journey concerned do not involve an element of profit.

NOTE: If in any doubt whether a car-sharing arrangement is covered by the terms of a private car policy, the policyholders concerned should make an enquiry to their motor insurers.

Motor Conference is the Standing Joint Committee of the Association of British Insurers and Lloyd's Motor Underwriters' Association