Wombles
LIFE MEMBER
Interesting advertising article https://www.outandaboutlive.co.uk/motorhomes/articles/general/who-is-comfort-insurance - Comfort now offer insurance cover to make loaning or renting out motorhomes easier for those who have their insurance cover. Not something we would want to do but may be of interest to some but as always with any insurance do check the small print!
"The cost of policies varies, as does the type and level of cover on offer. But now there is a new policy that could actually help you make money from your motorhome or campervan.
With the average cost of a new motorhome or campervan now over £50,000, the investment is significant.
However, many motorhomes are left idle for months at a time. This leads many people to ask themselves whether they can afford to buy a motorhome that they are possibly only going to use for a few weeks a year.
But, with the rise of peer-to-peer rental, driven by services such as Airbnb, the conclusion of many motorhomers is that their investment can – and should – earn them money.
Many newcomers are comfortable with the sharing economy and also with buying on finance and PCP (personal contract purchase). To do this they look for ways to fund those finance repayments through making their investment work.
“It is families who are buying new campervans and motorhomes and it is finance that is driving this,” says Ben Cue, Director of Operations at Comfort Insurance. “And this is where our new hire product comes in, which opens motorhoming up to more families and, for many, it will help them cover the acquisition costs by hiring their motorhome out.”
The new insurance product allows owners to rent their vehicle safe in the knowledge that they – and the person renting – have full insurance cover for the duration of the rental. This could be anything from a day to a month.
The new policy has taken two years to bring to market. “There have been technical and legal challenges to overcome but now it is ready,” explains Ben. “We have had to make sure it is the right product.”
Currently, motorhome and campervan owners have the option to add drivers, typically friends and family, to their policy but, in doing so, this could affect their claim record (if the additional driver has an accident) and this won’t cover hire. With the new policy, friends, family or the hirer takes out the insurance in their name and, in the event of a claim, the vehicle is fully insured and there’s no impact on the owner’s claims record.
“The person who is going to hire or borrow your motorhome will arrange the insurance and take out the policy,” explains Ben. “They will need to show this policy to the owner of the motorhome. We will provide guides, such as handover procedures – to help the owner check the hirer’s licence and for both the hirer and owner to agree the pre-hire condition of the vehicle, etc – but the key thing is we will give the right insurance cover and we will do checks on the person to qualify them.”
The arrival of this type of product has been driven by the market. “We know already that many of our customers are interested in this,” he says. “We know there is demand out there for this type of insurance…people are already searching for it.”
The principle is simple – if someone wants to rent your motorhome, you can now do so safe in the knowledge that they are fully insured.
“The owner must still do a comprehensive handover and do their own checks,” explains Ben. “We will provide a suggested handover document but the contract is between the owner and the person who is hiring the motorhome and the owner will still need a contract even if they are renting to friends or family.”
It is the aspect – renting to people known or related to the owner – that is expected to drive uptake. Owners are likely to trial the policy by lending/renting to people they know and trust and, as they become familiar with the process, then some are likely to rent to a wider pool.
“We are very early onto the scene and we expect this to grow and grow,” says Ben. “It is like the Airbnb model for motorhomes. Now you can hire your motorhome knowing it is underwritten by your insurer.”
The cost of a typical rental policy is between £19 and £24 a day including breakdown cover. To qualify, vehicles must be aged 12 years and younger and not be worth more than £100,000.
Cover is available from between one and 30 days and will cover the van to be used in the UK and Europe. The owner must have a Comfort policy already to use the new service.
There are also some safety rules. “The motorhome needs an up-to-date vehicle service and a habitation certificate,” explains Ben. “We do think there is a need for some regulations so people who are renting know the motorhome is safe for their family to be in. While it will appeal to many owners, it also opens motorhoming up to the younger families and those who want to go away in a motorhome but can’t afford to buy one,” he says."
"The cost of policies varies, as does the type and level of cover on offer. But now there is a new policy that could actually help you make money from your motorhome or campervan.
With the average cost of a new motorhome or campervan now over £50,000, the investment is significant.
However, many motorhomes are left idle for months at a time. This leads many people to ask themselves whether they can afford to buy a motorhome that they are possibly only going to use for a few weeks a year.
But, with the rise of peer-to-peer rental, driven by services such as Airbnb, the conclusion of many motorhomers is that their investment can – and should – earn them money.
Many newcomers are comfortable with the sharing economy and also with buying on finance and PCP (personal contract purchase). To do this they look for ways to fund those finance repayments through making their investment work.
“It is families who are buying new campervans and motorhomes and it is finance that is driving this,” says Ben Cue, Director of Operations at Comfort Insurance. “And this is where our new hire product comes in, which opens motorhoming up to more families and, for many, it will help them cover the acquisition costs by hiring their motorhome out.”
The new insurance product allows owners to rent their vehicle safe in the knowledge that they – and the person renting – have full insurance cover for the duration of the rental. This could be anything from a day to a month.
The new policy has taken two years to bring to market. “There have been technical and legal challenges to overcome but now it is ready,” explains Ben. “We have had to make sure it is the right product.”
Currently, motorhome and campervan owners have the option to add drivers, typically friends and family, to their policy but, in doing so, this could affect their claim record (if the additional driver has an accident) and this won’t cover hire. With the new policy, friends, family or the hirer takes out the insurance in their name and, in the event of a claim, the vehicle is fully insured and there’s no impact on the owner’s claims record.
“The person who is going to hire or borrow your motorhome will arrange the insurance and take out the policy,” explains Ben. “They will need to show this policy to the owner of the motorhome. We will provide guides, such as handover procedures – to help the owner check the hirer’s licence and for both the hirer and owner to agree the pre-hire condition of the vehicle, etc – but the key thing is we will give the right insurance cover and we will do checks on the person to qualify them.”
The arrival of this type of product has been driven by the market. “We know already that many of our customers are interested in this,” he says. “We know there is demand out there for this type of insurance…people are already searching for it.”
The principle is simple – if someone wants to rent your motorhome, you can now do so safe in the knowledge that they are fully insured.
“The owner must still do a comprehensive handover and do their own checks,” explains Ben. “We will provide a suggested handover document but the contract is between the owner and the person who is hiring the motorhome and the owner will still need a contract even if they are renting to friends or family.”
It is the aspect – renting to people known or related to the owner – that is expected to drive uptake. Owners are likely to trial the policy by lending/renting to people they know and trust and, as they become familiar with the process, then some are likely to rent to a wider pool.
“We are very early onto the scene and we expect this to grow and grow,” says Ben. “It is like the Airbnb model for motorhomes. Now you can hire your motorhome knowing it is underwritten by your insurer.”
The cost of a typical rental policy is between £19 and £24 a day including breakdown cover. To qualify, vehicles must be aged 12 years and younger and not be worth more than £100,000.
Cover is available from between one and 30 days and will cover the van to be used in the UK and Europe. The owner must have a Comfort policy already to use the new service.
There are also some safety rules. “The motorhome needs an up-to-date vehicle service and a habitation certificate,” explains Ben. “We do think there is a need for some regulations so people who are renting know the motorhome is safe for their family to be in. While it will appeal to many owners, it also opens motorhoming up to the younger families and those who want to go away in a motorhome but can’t afford to buy one,” he says."
