Do you need different insurance if you carpool?
Joshua and Bella talk car insurance.
Joshua: Hey Bella, a TangoRide customer asked me through a support email whether she required different car insurance if she carpooled? She seemed very concerned.
Bella: It is a good question, understandably it may raise concern.
Joshua: So what can we do to help?
Bella: Well firstly, I want to mention as part of TangoRide’s effort to minimise costs to users, the app was developed to ensure our carpooling service kept insurance policies in mind.
Joshua: Okay, that’s cool.
Bella: As it happens, the Association of British Insurers (ABI) are in fact very supportive of carpooling in the UK. And TangoRide is a legitimate carpooling service, it cannot be used for commercial use.
Joshua: Right, so what do they say?
Bella: From their website they state ‘ABI motor insurers have agreed that your insurance cover will not be affected if your passengers contribute towards your journey costs (including fuel, vehicle depreciation and associated vehicle running costs), as long as lifts are given in a vehicle seating eight passengers or less. This does not apply if you make a profit from payments received or if carrying passengers is your business.
However, we recommend that if you are part of a car-sharing scheme, you check the terms and conditions carefully and speak to your insurer to check you have the right level of cover.’
Joshua: So really, at the end of the day so long as TangoRide owner-drivers check with their insurance provider, they should be okay?
Bella: Yes, in most cases insurance companies in the UK will be fine with carpooling, as long as you are following the guidance just mentioned by ABI.
Joshua: Great, I will inform our customer to just check up on her insurance conditions.
Bella: Yes, I am sure there will be nothing to stop her to continue offering lifts to people in the community.