Can someone else insure my Motorhome (e.g. if I let them use it) (1 Viewer)

[MartMaeve]

As stated in the title, I am wondering how best to insure the van if, for example, I lend it to a friend of the family or a relative for a couple of weeks. When I've hired larger vehicles in the past, it has been common practice for the agent to ask me to insure the vehicle using my own insurance cover. I was wondering if this might work for us if we were to let friends borrow the van for a holiday of their own.

Any thoughts? (this being the motorhome insurance general discussion) - I did search for similar ideas here, but couldn't see anything particularly relevant.

Martin

 

[Geoff185]

I am sure you can get short term insurance so your insurance not being used. My daughter and family use ours , we could have got them to use own insurance but cheaper to add as named driver on ours. Our motorhome is on a net policy (same as a classic car so you don't get no claims bonus anyway)

 

[MartMaeve]

Thanks for that Geoff - it is cheaper, of course, only until there is a claim! At which point knock for knock, loss of no claims and all the attendant issues kick in, usually at significant cost. For that reason, if a motorhome could be insured by the person using it for their holiday, it would be better for me, as the owner

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[nicholsong]

I am not sure what the insurance industry answer would be but based on the principles of insurance law my answer would be as follows.

Any person taking out insurance has to have an 'Insurable interest', i.e. that person would personally suffer a loss if an event occurred. For example one could not insure the life of somebody who one did not currently rely on financially. the reasoning being that would be an incentive to kill or injure that person for personal gain.

Working from this thinking, the person who you lend to would have an Insurable Interest in respect of Third Party Liability, because if they caused an accident and damage to third parties they, not you, would be liable, whether insured or not.

In respect of damage to your vehicle that would depend on the arrangements between you for loss in such circumstances. If you had to bear the loss or damage to the vehicle he could not claim as he could pocket the money and not pay you.

I think the safest way to cover this would be for you and the borrower to sign an agreement that he, not you, is responsible for any damage to the MH. He therefore would have a liability for such loss, which would be an Insurable Interest, so would be able to take out insurance.

It would be prudent that the agreement you sign with the borrower also stipulates that he must take out such insurance, in case he cannot pay for the damage.

There is a slightly more complicated way, by making you the beneficiary of the insurance but I will not go into details - a broker could advise further.

Geoff