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Renting out my car- will the driver be covered by my insurance?

Let's say that I put up a notice in the office with an offer to let colleagues and their trusted friends borrow my car in return for a little bit of money. How would my insurance company react to this if there is an accident, and it came out that I had charged money for lending out the car? Would the driver still be insured? Would I lose my insurance for the future? Could I be prosecuted and thrown out of the country? I hate to have a car standing around that I hardly use, and I know people would be happy to be able to use if for a fraction of the price of a rental, but I'd like to know what the worst case scenario may look like first. 


Thankful for any help!

The text you are quoting:

Let's say that I put up a notice in the office with an offer to let colleagues and their trusted friends borrow my car in return for a little bit of money. How would my insurance company react to this if there is an accident, and it came out that I had charged money for lending out the car? Would the driver still be insured? Would I lose my insurance for the future? Could I be prosecuted and thrown out of the country? I hate to have a car standing around that I hardly use, and I know people would be happy to be able to use if for a fraction of the price of a rental, but I'd like to know what the worst case scenario may look like first. 


Thankful for any help!


Daniel ANov 30, 2014 @ 20:40
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Re: Renting out my car- will the driver be covered by my insurance?
Post 1

Bump

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Bump


Daniel A, Dec 15, 2014 @ 16:58
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Re: Renting out my car- will the driver be covered by my insurance?
Post 2

Daniel,


I suggest you ask your insurance agent, as they must advise corretly based on your current insurance coverage. If not covered they then could provide an estimate for extra cost, if necessary.


I just advise this and not get a bad surprise or caught out.


Especially if later there is an accident, all the legal problems could later all fall on you'personally', and if your taking money but have no rental contract like most rental companies, your probably accepting 'TONS' of personal financial liability and risk.


but im sure all is not illegal, its about your risk threshold, adiquately insured, or can you self insure yourself?


Note in CH, there are two abosolutes:


Taxes & Insurance, so dont guess but ask your agent.


 

The text you are quoting:

Daniel,


I suggest you ask your insurance agent, as they must advise corretly based on your current insurance coverage. If not covered they then could provide an estimate for extra cost, if necessary.


I just advise this and not get a bad surprise or caught out.


Especially if later there is an accident, all the legal problems could later all fall on you'personally', and if your taking money but have no rental contract like most rental companies, your probably accepting 'TONS' of personal financial liability and risk.


but im sure all is not illegal, its about your risk threshold, adiquately insured, or can you self insure yourself?


Note in CH, there are two abosolutes:


Taxes & Insurance, so dont guess but ask your agent.


 


Dave G, Dec 15, 2014 @ 17:09
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Re: Renting out my car- will the driver be covered by my insurance?
Post 3

Ask your insurance but in my opinion you would be a total idiot to lend a car to someone, even a friend. 

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Ask your insurance but in my opinion you would be a total idiot to lend a car to someone, even a friend. 


nickg_44, Jan 20, 2015 @ 17:17
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Re: Renting out my car- will the driver be covered by my insurance?
Post 4

Lending a car for no payment should be no problem as your insurance automatically covers any driver (but double check this).  The minute you take payment you take all the responsibility as if you were a car hire company.  This is my opinion and it is something I would never contemplate.  Lend - yes but only occasionally and only to friends whose driving ability I was happy with


Why don't you sell it or are you suffering from a temporary ban?

The text you are quoting:

Lending a car for no payment should be no problem as your insurance automatically covers any driver (but double check this).  The minute you take payment you take all the responsibility as if you were a car hire company.  This is my opinion and it is something I would never contemplate.  Lend - yes but only occasionally and only to friends whose driving ability I was happy with


Why don't you sell it or are you suffering from a temporary ban?


Paul E, Jan 20, 2015 @ 22:39
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Re: Renting out my car- will the driver be covered by my insurance?
Post 5

Thanks for the advice. I have a feeling my insurance company will say it's not allowed, just to be on the safe side. What I'm interested in is the legal problems that could arise. I don't want to sell the car as I occasionally use it. It just seems like a waste of capital to have it standing around 99% of the time. Kind of like having an appartment that you only use every other weekend, and not rent it out on airbnb in the meantime. 

The text you are quoting:

Thanks for the advice. I have a feeling my insurance company will say it's not allowed, just to be on the safe side. What I'm interested in is the legal problems that could arise. I don't want to sell the car as I occasionally use it. It just seems like a waste of capital to have it standing around 99% of the time. Kind of like having an appartment that you only use every other weekend, and not rent it out on airbnb in the meantime. 


Daniel A, Jan 21, 2015 @ 07:08
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Re: Renting out my car- will the driver be covered by my insurance?
Post 6

Thanks for the advice. I have a feeling my insurance company will say it's not allowed, just to be on the safe side. What I'm interested in is the legal problems that could arise. I don't want to sell the car as I occasionally use it. It just seems like a waste of capital to have it standing around 99% of the time. Kind of like having an appartment that you only use every other weekend, and not rent it out on airbnb in the meantime. 


Jan 21, 15 07:08

The mind boggles at the thought of extending your drift to other possessions:


I only use the washing-machine once a week,


I only use my skis occasionally,


I only wear my DJ two or three times a year,


etc., etc.


So why not sell the car and take taxis and/or hire a car when you need it?

The text you are quoting:

The mind boggles at the thought of extending your drift to other possessions:


I only use the washing-machine once a week,


I only use my skis occasionally,


I only wear my DJ two or three times a year,


etc., etc.


So why not sell the car and take taxis and/or hire a car when you need it?


Ritchie, Jan 21, 2015 @ 10:03
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Re: Renting out my car- will the driver be covered by my insurance?
Post 7

Let's say that I put up a notice in the office with an offer to let colleagues and their trusted friends borrow my car in return for a little bit of money. How would my insurance company react to this if there is an accident, and it came out that I had charged money for lending out the car? Would the driver still be insured? Would I lose my insurance for the future? Could I be prosecuted and thrown out of the country? I hate to have a car standing around that I hardly use, and I know people would be happy to be able to use if for a fraction of the price of a rental, but I'd like to know what the worst case scenario may look like first. 

Thankful for any help!


Nov 30, 14 20:40

Why not advertise your car on social car sharing, you could let it out when not using it and make a bit of money out of it (some people do that in France, and here is something I found for the Swiss side http://www.2em.ch/fr/).


Although, check the terms and conditions. Some renting sites are used as "middle man", and you pay tax on income.  As Ritchie says, you might be better off without a car and hire one when you need it, sometimes, it becomes the cheapest option :)

The text you are quoting:

Why not advertise your car on social car sharing, you could let it out when not using it and make a bit of money out of it (some people do that in France, and here is something I found for the Swiss side http://www.2em.ch/fr/).


Although, check the terms and conditions. Some renting sites are used as "middle man", and you pay tax on income.  As Ritchie says, you might be better off without a car and hire one when you need it, sometimes, it becomes the cheapest option :)


TreeOf Life, Jan 21, 2015 @ 13:48
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Re: Renting out my car- will the driver be covered by my insurance?
Post 8

The mind boggles at the thought of extending your drift to other possessions:

I only use the washing-machine once a week,

I only use my skis occasionally,

I only wear my DJ two or three times a year,

etc., etc.

So why not sell the car and take taxis and/or hire a car when you need it?


Jan 21, 15 10:03

Because the car doesn't cost me much to own (700 CHF a year in insurance and registration, and parking is free) and was bought for 3000 CHF. I use it for 9 weeks straight every summer, as well for occasional weekend trips to places where you can't take a taxi (the mountains). Selling the car would make no sense at all. The value I put on owning a car is many many times its cost to me. 

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Because the car doesn't cost me much to own (700 CHF a year in insurance and registration, and parking is free) and was bought for 3000 CHF. I use it for 9 weeks straight every summer, as well for occasional weekend trips to places where you can't take a taxi (the mountains). Selling the car would make no sense at all. The value I put on owning a car is many many times its cost to me. 


Daniel A, Jan 23, 2015 @ 19:00
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Re: Renting out my car- will the driver be covered by my insurance?
Post 9

Why not advertise your car on social car sharing, you could let it out when not using it and make a bit of money out of it (some people do that in France, and here is something I found for the Swiss side http://www.2em.ch/fr/).

Although, check the terms and conditions. Some renting sites are used as "middle man", and you pay tax on income.  As Ritchie says, you might be better off without a car and hire one when you need it, sometimes, it becomes the cheapest option :)


Jan 21, 15 13:48

Thanks a lot! Just what I was looking for! 

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Thanks a lot! Just what I was looking for! 


Daniel A, Jan 23, 2015 @ 19:05
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