Consumers have been concerned about extra costs related to carpooling that affect car insurance premiums. The affect on insurance costs is determined by whose vehicle you ride in. If you ride in somebody else’s car it probably won’t affect your rates because the insurance on the vehicle is their responsibility.
If you are driving your car for carpooling, there should be no affect on your car insurance premium. The policy will cover the other members of the pool because they are passengers. If you have a really good driving record you won’t pay any extra for insurance.
However, there are some circumstances when having regular passengers in your car can affect insurance premiums. The first is if you charge the passengers for the service, which could be construed as hiring out your car. Most standard car insurance policies specifically exclude paying passengers. If you carpool make sure that you don’t charge the passengers.
Chipping in for gas is acceptable, but running a taxi service for income violates most insurance policies. If you want to haul people around for money get a taxi license and go to work for your local cab company, which will pay the insurance.
The other time being in a car pool can affect your coverage is if you let somebody else drive your car. Such a person is considered a permissive driver, which means your policy still covers the vehicle while he or she is driving, and any accidents they get in could affect your policy.
To make matters worse, most policies specifically exclude certain people including teenagers, unlicensed drivers, those with bad driving records and persons without insurance. If the driver falls into any of those categories your insurance company may not pay a claim. That means you would be responsible for any damage they cause.
If you let other members of the carpool drive your vehicle ask to see their car insurance and driver’s license first. Make sure both are current and there are no restrictions on the license. If the person doesn’t have a license let him or her pay for the gas.
There is also a way that participating in a carpool can reduce insurance premiums. If you simply ride, and don’t drive carpooling can reduce the number of miles you drive. Many companies will give you a break if you drive fewer miles. The reverse is also true, if you put a lot of mileage on your vehicle while driving the carpool your premium could increase. If you plan to use your vehicle in a carpool, insurance experts recommend that you check your insurance policy first. That way you won’t get any nasty surprises.
If you are driving your car for carpooling, there should be no affect on your car insurance premium. The policy will cover the other members of the pool because they are passengers. If you have a really good driving record you won’t pay any extra for insurance.
However, there are some circumstances when having regular passengers in your car can affect insurance premiums. The first is if you charge the passengers for the service, which could be construed as hiring out your car. Most standard car insurance policies specifically exclude paying passengers. If you carpool make sure that you don’t charge the passengers.
Chipping in for gas is acceptable, but running a taxi service for income violates most insurance policies. If you want to haul people around for money get a taxi license and go to work for your local cab company, which will pay the insurance.
The other time being in a car pool can affect your coverage is if you let somebody else drive your car. Such a person is considered a permissive driver, which means your policy still covers the vehicle while he or she is driving, and any accidents they get in could affect your policy.
To make matters worse, most policies specifically exclude certain people including teenagers, unlicensed drivers, those with bad driving records and persons without insurance. If the driver falls into any of those categories your insurance company may not pay a claim. That means you would be responsible for any damage they cause.
If you let other members of the carpool drive your vehicle ask to see their car insurance and driver’s license first. Make sure both are current and there are no restrictions on the license. If the person doesn’t have a license let him or her pay for the gas.
There is also a way that participating in a carpool can reduce insurance premiums. If you simply ride, and don’t drive carpooling can reduce the number of miles you drive. Many companies will give you a break if you drive fewer miles. The reverse is also true, if you put a lot of mileage on your vehicle while driving the carpool your premium could increase. If you plan to use your vehicle in a carpool, insurance experts recommend that you check your insurance policy first. That way you won’t get any nasty surprises.
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