South African drivers are frustrated by the increase of petrol prices. The petrol prices has made commuters look for other alternatives to get to their destinations. Other commuters have found an opportunity in carpooling that gives them a chance to share a ride with someone else that travels to the same areas as them. Employers also provide a company car that transports their employees to the homes and to work. The act is inspiring but also comes with heavy implications and responsibilities, that is why car insurance companies should be aware of this just in case an accident happens.
Investigating The Circumstances For Insurance
When a driver uses their car to transport people and then get into an accident, the insurance company will investigate if whether the car was registered under a commercial car insurance policy and if not then your claim to cover the accident will be denied. When dealing with the insurance company then drivers should alert them if they receive any money from their passenger. They will also be interested to know the number of passengers that are transported on a regular and if they understand that any injuries acquired on the road will not be paid out by the driver as their insurance company does not cover that.
Terms and Conditions On Insurance
The insurance company will likely modify the terms and conditions. They will make the driver change their insurance cover from personal and private use to that of a commissioned vehicle. They will also negotiate an increase to the amount you pay on the insurance premium on basis of increase in liability and risk of more than one passenger. They will compensate on your insurance if you can give evidence that the money received is used solely for petrol. If there is a team that alternate cars per month than the insurance company might reduce costs because the risk decreased and there is no money being exchanged.