‘Impact on future premiums’: New money-making scheme may have effect on car insurance

‘Impact on future premiums’: New money-making scheme may have effect on car insurance


Morning Live: Expert shares tips on car insurance

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Savvy Britons whose finances have been hit by the pandemic are making thousands of pounds a year by hiring out their personal vehicles for other drivers. Rather than leaving their cars to gather dust in their garages, some drivers are signing up to a car sharing platform to make some extra cash.

Apps like this have been touted as being an “Airbnb for cars”.

Drivers with keyless cars wouldn’t even need to meet the person who is taking the car for a spin.

There are a number of car sharing schemes that are available for drivers around the country, which allow drivers to hire someone else’s car.

Drivers can take their pick from a variety of cars from electric, to family SUVs, even some supercars are available for people to hire.

According to recent statistics from Karshare, more than half a million consumers requested to freeze their car finance payments during the pandemic.

With 5,000 renters signed up to the Karshare platform and 150 people listing their vehicles, there’s a definite demand for more car owners to join the car sharing community.

The car sharing app also found that 40 percent of car owners in Birmingham said lockdown has made them assess whether they need a car every day.

Just under four in 10 said they planned on using their car a lot less over the next year.

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Despite this, car insurance experts are warning drivers that they may not be covered if they were to rent their car out.

A spokesperson for Admiral Insurance said their insurance policy doesn’t cover someone to rent their car out.

Whilst there are no rules to say that someone can’t rent their car out, their use wouldn’t be covered by their Admiral policy.

A spokesperson for Admiral said: “So, in a nutshell, it’s fine for a customer with us to rent their vehicle out, but we wouldn’t offer any cover under our policy.

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