Would Sharing Petrol Costs Invalidate Motor Insurance?

[dunwerkin]

I belong to a walking group and someone said that they wouldn't use their car to carry other walkers and share petrol costs as it might affect their insurance. Does anyone know the answer to this? Apart from the obvious - don't tell the insurance company.

[tonyav]

Only thing I can think of is that the insurance company may deem it that the car was being used for business purposes when it's only insured for social, pleasure and commuting.

[hc4361]

No, it doesn't as long as the car is still being used for the purpose it is insured for, for example social, domestic and pleasure AND the driver makes no profit as nearly all insurance policies exclude use for 'hire and reward'. Sharing petrol costs does not constitute 'hire and reward'.

In the social situation you describe there is nothing to worry about - the insurance would be valid.

[Buenchico]

Sharing petrol costs does NOT constitute using the vehicle "for hire or reward" and therefore does NOT invalidate an insurance policy.

[hc4361]

"The Association of British Insurers clearly states that car-sharing won't affect the insurance of their members so long as a profit isn't made:
"Giving Lifts - All ABI motor insurers have agreed that if your passengers contribute towards your running costs your insurance cover will not be affected, as long as lifts are given in a vehicle seating eight passengers or less. This agreement does not apply if you make a profit from payments received or if carrying passengers is your business." (Source: ABI website, 2005)

The ABI represents around 400 companies, transacting 94% of the business of UK insurance companies. Drivers should check with their insurance company as terms and conditions may vary between insurance providers over time. "
http://www.carsharegm.com/faq.aspx#insurance

Of course it does no harm to clarify the situation with your own insurance company if you are at all worried

[dunwerkin]

Thanks tonyav - I can see your point, although its a pretty poor business venture if I am not making a profit on the transaction! But insurance companies have elastic interpretations sometimes.

[tonyav]

Has the other posters say, check it out with your insurance company, dunwerkin.

[dunwerkin]

Wow, thank you all for being so prompt with your responses. That is very reassuring. I will let my friends know.

[lardhelmet]

Bet the person who said that just wanted to be able to have a drink (or two) when your walking group stops at a pub and they didn't want to get stuck being the driver.

[factor-fiction]

>Thanks tonyav - I can see your point, although its a pretty poor business venture if I am not making a profit on the transaction!

It's either a cost sharing scheme where there is no profit or it's a profit making scheme. I'm not sure how it can be both.
But i doubt very much it would become an issue unless you were thought to be running a taxi service

[dunwerkin]

Oh Lardhelmet you are such a cynic :-)) But I have to confess that any walk lead by me does tend to feature a cafe/pub or restaurant. Thank you all for your replies. I am the Co-Editor of our Newsletter so that will be something to put in the Editorial section.