Carpooling: What your insurer needs you to know

Saving more money is a common New Year resolution and a good practice to maintain throughout the year. With increasing petrol prices and tolls, and the issue of traffic congestion, carpooling could be an economical and less stressful way of getting to work. 


“Lift clubs or carpooling may be profitable however it could affect your insurance cover as some insurers may classify it as business use and may repudiate a claim if you insured your vehicle under personal use,” says Derek Wilson, Head of, “It is important to inform your insurer of the exact usage of your car and whether you receive any remuneration from passengers.”


Arrive Alive compares 3 different kinds of car-pooling: designated driver carpool, alternating carpool and employer carpool.


Designated driver carpool:

Considered the most common amongst the three, one driver is designated to drive the rest of the members. The club members then contribute to the cost of petrol and the maintenance of the car.


Alternating carpool:

Drivers alternate on a weekly or monthly basis as per agreement. The club members will equally contribute to all transport expenditures incurred by members whose vehicles are being utilized.


Employer carpool:

Refers to the use of a company vehicle provided by the employer for employees’ carpools. Employees are expected to contribute to cost maintenance of the company vehicle. 


“Double check that you have adequate vehicle insurance cover should you use or plan on using your car for any of the above carpooling options. It is also beneficial to double check whether you have the best insurance cover for your specific needs by comparing from a range of SA providers online. At least 8 out of 10 people could save an average of R427 per month* on their car insurance by comparing from up to 14 insurers through,” says Wilson.


Established in 2007, is South Africa’s leading comparison website that helps consumers save money by comparing a range of SA providers across financial products such as car insurance, home insurance, life insurance, medical and more. Hippo is free to use and saves consumers the time and hassle of shopping around for the best deal since the website instantly retrieves real-time quotes from the different providers using the latest Internet technology. At least 8 out of 10 people could save an average of R427 per month* on their car insurance. makes money by simply charging its partners a fee when a customer chooses to find out more about their products. The results consumers see, and the order in which they are presented, is in no way influenced by the fee charges its partners or any other factors other than the price of the product being compared. 


For more information, visit us on, connect with Hippo on LinkedIn,, like us on Facebook,, and follow us on Twitter @Hippo_co_za and YouTube,


Hippo Comparative Services (Pty) Ltd is an authorized financial services provider (FSP number: 16357).


*Average savings based on a representative market research survey conducted by Kaufman Levin Associates, on behalf of in May 2014.  Risk Profile Dependent.

Compare Car Insurance Quotes

Our trusted partners