Car Insurance for the Guest House Industry
Why do you need car insurance?
The theft of a car or an accident can be a traumatic occurrence to have to deal with. Then to suffer a financial loss because of it makes the experience all the worse.
In South Africa it should be remembered, that it is not compulsory to take out car insurance, this means even of you are involved in accident that is not your fault you could still be stuck with the bill. In fact, out of the 12 million cars on South African roads, only 30% of them are insured!
What does Car Insurance cover against?
Comprehensive Car insurance would normally cover against the following;
- Theft of your vehicle
- Accidental damage to your car
- Damage to other vehicles
- Liability protection
What your car insurance might not cover?
- Wear and Tear
- Claims through negligence (driving over the alcohol limit, not having a valid drivers license etc)
- Items specifically excluded
- Excess amounts
What is different about Car Insurance when used for a Guest House or AirBnB?
If you start using your vehicle to collect your short term paying guests from the airport or dropping them off at their requested locations, your vehicle is no longer being used for personal use. This now classifies as a business use vehicle and should be insured correctly in this respect. Not only would you not be covered should your personal insurer find out that it is being used for business, you would not have the correct passenger liability in place.
It is imperative that if you are using your vehicle to transport guests at any time, you have the correct cover in place.
To discuss what your specific needs are and how to get this cover in place, please get in touch with Incompass and we will gladly assist you.