Along with car insurance, for any owner, the additional expenses of gas, and maintenance, especially in the hard times of recession, pinches real hard. Most car owners therefore, prefer to use the option of car sharing, whenever possible. Car sharing helps car owners who wish to distribute the gas/petrol cost to people utilizing the services of a convenient mode of transportation and driver. Usually, as the passengers are friends or colleagues of the owner, the payment terms for the fuel are informal and based on mutual consent.
It is being promoted by various corporatations to reduce the need for more parking spaces in offices. Many residential areas and educational institutions promote it to reduce traffic in peak hours.
Car Insurance When Car Sharing as Owner
Car sharing has its benefits, however, when it comes to the car insurance issue, a car owner should take notice of certain things. First, does the insurance policy of your car prohibit you in any manner for using your car for hire or sharing? Secondly, if there is no such restriction, does the insurance company know you are sharing your car with friends and expenses are shared the same – fuel and/or maintenance? Third, has the insurance company provided you with the clearance in writing for sharing the car with your friends or passengers?
Car Insurance When Car Sharing as Passenger
If you are not a car owner but are sharing the car with one, you could get yourself covered with the non-car owner policy, to cover any incidents that may occur. The Pay-As-You-Drive policy is available in limited places in the US, but is another good insurance option for car sharing passengers.
In conclusion, car sharing is an environment-friendly option which car owners and other should benefit from. However, they should consider all norms applicable for the same-like insurance coverage for the owner and the passengers.