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Hiring and Insurance


AngelaM

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Anyone out there that hires out their motorhome? We are purchasing a motorhome which we will occasionally hiring out. The motorhome will be insured by the motorhome company for the hirers and we arrange our own insurance for our personal use. The problem is that insurance companies have told me we can't do this. So my question is how are others doing it then? This particular hire company has lots of people's personal motorhomes on it?

 

Not sure what to do now any advice would be appreciated.

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AngelaM - 2014-10-13 7:59 PM

 

Anyone out there that hires out their motorhome? We are purchasing a motorhome which we will occasionally hiring out. The motorhome will be insured by the motorhome company for the hirers and we arrange our own insurance for our personal use. The problem is that insurance companies have told me we can't do this. So my question is how are others doing it then? This particular hire company has lots of people's personal motorhomes on it?

 

Not sure what to do now any advice would be appreciated.

 

You can't have "double" insurance on a vehicle. If you intend to hire out your van, you may have to go with the hiring company for your insurance!1 You are highly unlikely to find any one on here who would hire out there pride and joy. We have had family use van, and just inform our insurers and put them on for the duration of the loan.and pay extra for it.

Sounds as if the "motorhome company" (your words) don't know what they are doing!!

Think VERY carefully before agreeing to any thing.

Maybe Nick Fisher (euroserve) may have a reply for you, as I think he hires out vans!

PJay

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Insurers don't like "double" insurance because there might be an argument over liability in the event of a claim - and also perhaps these days because the database on which they record insurance status (which the police use to check) might get confused.

 

In this case however there is no conflict or overlap, because your own motorhome policy will cover your use and exclude "hiring and racing" etc, as all policies do, so if your motorhome is being rented out it is covered by the agent's policy and your policy can't be claimed upon because that type of use is excluded from cover.

 

So your policy is in a sense suspended until you resume normal custody and use of your motorhome. Unless your policy requires you to tell the insurer that non-insured use is taking place (unlikely?) you probably don't even need to tell them.

 

Your mistake might therefore have been to tell your own insurer that you are thinking of doing rental when you had no obligation to do so. While your insurer might like to think they "own" you and your vehicle because you have one of their policies, they don't realy!

 

Important to make sure there are no gaps in the cover of course, so that when hiring there is complete cover, including fire and theft cover etc. You need to regard your own insurance as completely invalid while your motorhome is being rented out.

 

For example suppose you agree to deliver your motorhome - will that count as "social domestic and pleasure purposes" on your own policy (doubtful) or will that journey be covered under the agent's policy too?

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Just another cautionary note. Five years ago, before we had our own van, we offered to look after somebody else's, who was hiring it out. It was surprisingly successful - went out regularly.

 

BUT, I don't think it ever came back once without some sort of additional damage each time - internal or external. *-) A little dent here, a scrape on the furniture there, and one time the back corner of the roof was knocked off where it caught a filling station canopy in Spain!

 

It is also worth knowing that getting hold of spares, especially body panels, is not always easy - can wait weeks or months for them. Obviously, some bits and bobs can be bought at a local dealer or online - but frequently not the case for manufacturer-specific stuff.

 

Some sort of prang early in the season, van could be off the road for months, revenue down the pan, and customers with forward holiday bookings let down...

 

Not saying 'don't do it', but go into it with your eyes wide open.

 

Mike

 

 

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