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Last year it came to our attention that some motorhome owners were making their vehicles available to self-drive hire companies, who then let the vehicles out on a short-term basis. On the face of it, and since the motorhome owner receives a fee, it may appear to be a good way of earning a little extra when the vehicle is not required by the owner, and possibly a good alternative to putting it into storage. We understand that these arrangements are on a business basis, and often a proper contract is in place.
Motorhome owners need to be aware that their insurers will see this arrangement as business use. This activity could certainly breach the use terms of most standard motorhome policies, thus rendering them invalid. The fact that any accident involving the hirer would be settled by the self-drive hire companies’ insurer would not change this situation.
We are not sure as to the extent of these arrangements, but we do know that this is not restricted to the odd isolated incident. Please be warned!
This was originally published as a client Newsletter and has now been updated.
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