Car Insurance
Car-sharing 'could mean car insurance rise'
Wed, 28 Jun 2006
Car-sharing schemes could have implications for the car insurance coverage of drivers who charge their passengers, insurance industry experts have warned.
Car-sharing has been promoted recently by governments and environmental campaigners alike anxious to reduce the number of cars on Britain's roads, curbing congestion and reducing the amount of CO2 being pumped into the atmosphere.
The government has recently been trialing the use of special 'car-share lanes', which may be used during rush-hour only by cars with two or more people in them.
However, now the car insurance industry is warning that such schemes could have implications for insurance policies.
If a driver chooses to charge his passengers for the privilege of driving to work, this could count as using the vehicle for commercial purposes, something that is likely to affect the driver's insurance premiums.
Many drivers currently opt for the cheaper option of car insurance, which only covers recreational or social use of the car, rather than business use.
© Adfero Ltd
