Hiring out Private Car

KingJuf on 11/05/2017 - 14:57

Hi OzBargainers,

Seeking some information in case anyone here may know or have come across a similar situation.

I have several privately owned vehicles which we hire out casually to guests who are primarily tourists, previously we have gone for standard comprehensive car insurance for cover as the insurer advised me my cars would be covered for damage caused by guests who hire my vehicle.

After doing some more digging it appears this is not the case and I am struggling to find more information on what type of insurance or what companies will cover my vehicles.

Does anyone have any advise or know more about this?

Automotive

Comments

  • [Deactivated] on 11/05/2017 - 15:05
    +1

    ever thought about calling an insurance company or an insurance broker to ask??

    • KingJuf on 11/05/2017 - 15:07
      +1

      I have but I seem to be getting bounced around, I just thought I would ask here someone may do something similar or know more about this type of insurance.

      • [Deactivated] on 11/05/2017 - 15:19
        +4

        Mate, you're running a business.

        Your vehicles are your business and if you get caught with improper insurance on a vehicle you've been leasing out to tourists you're gonna get destroyed by the insurance company and probably sued if something happens.

        Damage to your own cars is not what you need to worry about, its when those people cause an accident and you're on the hook for all the damages/loss of life, etc.

        There's a reason it costs what it does to rent cars from Avis, etc, they have insurance and coverage plus processes in place to protect them when someone does do that

  • Skramit on 11/05/2017 - 15:16
    +1

    If you're using the cars for business purposes (which you seem to be) then you need different type of insurance.

    Put it this way, if your 'guests' who pay you money to rent your car (aka a buisiness) and had a crash or were killed, you and they would not be insured = big $$$ potentially.

    There's a reason insurance companies ask a specific question when you sign up to a policy "Will this vehicle be used for business purposes"?

  • Neilzy on 11/05/2017 - 15:17

    dont think many insurance companies would cover you for 'hiring' out your car. generally, an insurer will cover extra/additional drivers only if they are a family member, and im pretty sure if the car is for private use.

    Im thinking you 'leasing' out your car to people would be deemed commercial use and not private use and so would not be covered. I could be wrong but its what think.

  • Baysew on 11/05/2017 - 17:01
    +2

    Check out this site..might be some clues about insurance.

    Car Next Door

  • pegaxs on 11/05/2017 - 17:25

    It's a business you're running, you need to get business insurance. Get on google and just look for insurance broker. They would have all the info you would need.

    Like others have said above, all it will take is one accident and your insurance won't cover it if you hired it out. And while a guest may only dingle a small car, you can recover. If they cause a truck crash, multiple cars, buildings and/or multiple deaths, you could possibly end up in the millions of dollars… and I can tell you now, the guests you rented the car out to, they will also sue you, even if it was their fault.

    If it's a business, pay for the right insurance. And get an ABN and pay your taxes.

  • katekate1 on 11/05/2017 - 18:03

    How about hiring a driver and put your car on Uber?

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