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Car Sharing and car insurance - Am I covered if I share my
car?
The payment of a sum of money by a passenger
towards the running costs of a car.
The Road
Traffic Act 1988, s.150 allows the user of a motor vehicle
to carry passengers, who share the cost of the journey, without
this being regarded as use for hire or reward provided that
(a) the vehicle is not adapted to carry more than eight passengers,
and is not a motorcycle;
(b) the total amount paid does not exceed the running costs
(which includes depreciation); and
(c) the arrangement for payment was made at the beginning
of the journey.
In effect, the passenger contributes to petrol, oil and maintenance
costs and the motorist’s normal certificate of car insurance
suffices even though it excludes use for hire or rewards.
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