May 2008
HIRE OR NOT TO HIRE ?
Over the last year or so we have become increasingly aware of a new trend—motorhome owners allowing their vehicles to be hired out for days or weeks at a time, presumably to assist with the financial cost of running the van. Hard facts are difficult to come by, so we are unclear as to how widespread this arrangement has become. All we know is that it happens, and indeed some of our own policyholders have confirmed this.
Why is this a problem? Well, for a start our policy would be invalid if the motorhome were to be hired to a third party for profit. This is in effect a business venture and needs to be treated as such. So if the normal motorhome insurance doesn’t cover this event, who does? Assuming that most people venturing into this arrangement do so via an agent (vehicle hire company etc.), then it should be up to that agent to source insurance for the period of hire. In insurance terms, this is known as “Self-Drive Hire”, and is treated no differently from any of the major car-hire firms around the country. Such activity requires a business policy.
So the agent is arranging the insurance cover for the period(s) the motorhome is hired out. Does that solve all the problems? Not necessarily. Most self-drive hire policies are arranged on a fleet basis, and would include cars, vans and, in this case, motorhomes. The first thing to establish then is whether the insurance provided with the hire gives the same level of protection as your own personal policy. Does it give gas & explosion cover? Are awnings and generators covered? Does any breakdown facility give service no matter what the weight or length of the vehicle?
All the potential problems mentioned above can be resolved, but not without a good deal of checking. If you are thinking of hiring your motorhome out, be aware of the pitfalls and do the homework in advance to ensure you avoid the financial fallout if things go wrong
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