Car Insurance if renting car to a friend

[Indianinoz]

Hello,

I'm going off overseas for a month and my friend wants to rent the car from me. I do not have a comprehensive policy(since I don't want to cover my car since its an old one) but I have a the all the compulsory insurance required like Compulsory Third party and also road assistance. The name on the policy is just of me and my wife.

How can the friend ensure he is fully insured for all thirds parties? Does he need to take a separate insurance? Is my insurance sufficient for him?

[Gbye grey sky]

You will need to refer to your insurance policy to see what is covered but I strongly suspect that your friend will need to organise his own insurance on your vehicle assuming he has no car insurance policy currently.

[Indianinoz]

Policy says if someone else is driving, there will be a further excess of $650 but can be covered. So does this mean I don't need to do anything if my friend is fine with this excess?

[Guest]

Why not check with your insurance company to be certain. They are the ones beat places to tell you.

[Gbye grey sky]

2 hours ago, Indianinoz said:

Policy says if someone else is driving, there will be a further excess of $650 but can be covered. So does this mean I don't need to do anything if my friend is fine with this excess?

I wouldn’t rely on a random stranger on the internet myself for this kind of very specific question about your car insurance policy.  Check the position with your insurance company.  A mistake could be very costly.

[seraphim]

if you're receiving a pecuniary benefit for the vehicle then it may change classes to a business use not a personal use so also check your green slip (assuming NSW other states may vary), as the difference is $$$ and may be more than the rent. If not, then a crash will render the vehicle uncovered and the owner potentially fully liable. 

 

Check with your insurer and state regs on rego/ctp for personal or business use (business = you are making money)