Kemp explains the types of carpooling: Specific driver carpool: In this case, there will be a designated driver and car, and passengers pay a weekly/monthly rate towards things like petrol, parking and maintenance. This amount should not exceed the Sars Reimbursement Travel Allowance, that is, no profit is made. Alternating carpool: Everyone takes turns to
Kemp explains the types of carpooling:
Specific driver carpool: In this case, there will be a designated driver and car, and passengers pay a weekly/monthly rate towards things like petrol, parking and maintenance. This amount should not exceed the Sars Reimbursement Travel Allowance, that is, no profit is made.
Alternating carpool: Everyone takes turns to drive with their own cars on a daily, weekly or monthly basis. Simply put, when you drive, you pay. When you ride, it’s free. In this case, no money is exchanged, and each driver is responsible for their own insurance and maintenance costs.
Side hustle carpool: With apps like JustGo, you could use your car to earn some cash on an upcoming trip, accepting cash from strangers to share a ride with you. He adds, however, that it is recommended that this amount should not exceed the Sars Reimbursement Travel Allowance, meaning no profit is made.
Employer carpool: Some employers offer staff the use of company vehicles to encourage carpooling. Employees would then pay a fare to cover petrol, insurance and maintenance costs.
For the top three types, Kemp says “passengers should also know that they will be unable to claim from you for bodily injury within SA in the event of an accident but will have to submit a claim from the Road Accident Fund”.
He says whichever type of carpooling you choose, “it’s a good idea to let your insurer know if anything changes in your regular driving set-up as this can affect insurance premiums”.
“For example, if the designated driver of your car is not the ‘regular driver’ quoted in your insurance policy documents, and is involved in an accident, your claim may be influenced in terms of the cover and premium applicable. If money changes hands, things get more complicated too.
“It could be seen by an insurer as a commercial transaction, especially if the money you’re receiving is more than what is necessary to cover petrol, maintenance, parking, and so on. You would then potentially need business insurance or a special permit if you transport children or more than 12 people at a time.”
He says insurers have different definitions for a lift club.
“In the case of Santam, one of the vehicle exclusions denotes that carrying of passengers for hire or passengers who pay a fare are excluded except in the case of vehicle sharing to conserve fuel.
“If you are the owner of a carpool vehicle it’s imperative to ensure you have comprehensive insurance from a reputable provider. It’s a good idea to speak to your broker or insurer about relooking your insurance cover – for useful extras such as roadside assistance, tyre and rim cover or windscreen protection.”
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Original Story by www.sowetanlive.co.za
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