A common trend among second hand car owners with big – or small – families, is that they habitually decide to pass on their existing ‘old’ car to a child, sibling or spouse, as though it’s some sort of family heirloom – especially when it’s time to get Tesla’s latest self-driving or hybrid car on the market.

There are paramount insurance implications and financial complications  involved in giving or borrowing your car to somebody else.

What are the possible consequences when ‘your’ completely-owned vehicle gets into a road accident?

As motorists and car owners, our instincts would tell us to head straight down to the police station to get a claim number and contact our loyal car insurer, who has to deal with the pay up. However, in most cases, vehicle insurance claims are rejected if the person behind the wheel was not the vehicle owner, but noted as the ‘regular driver’.

Imagine how furious you’d be when you’ve been paying insurance for months, and when the time comes to experience the benefits of vehicle insurance, your claim gets rejected – leaving you to pay for major accident car damage, not caused by you.

So, who exactly is referred to as the ‘regular driver’?

The person who drives the second hand car the most often – on a regular basis – within a given period, is essentially referred to as the regular driver, by insurance companies.

CarZar.co.za defines 5 steps to take, in order to ensure full insurance coverage over your car.

1. Premiums: Economics decide the payout amount – the size of the risk posed – which is generally bigger if you’re not the regular driver of the used car.

1. Policyholders: Most policyholders do not provide the correct name of the regular driver. Insurers do checks as part of the claims validation process. If they discover you’ve been dishonest, your policy will be void and they’ll reject your claim.

1. The driver: It’s acceptable to allow others to drive your car. You’ll still be covered under the following conditions:

• The name of the regular driver is correctly stated on the policy
• The names of all the drivers were listed on the policy document
• The drive adhered to the policy conditions
• The driver drove with the vehicle’s correct license type
• The driver was not under the influence of substances that could affect their driving ability

1. Disclosure: Disclose all the necessary details. Your claim will only be valid if the policy terms and conditions was adhered to. If you list the correct regular driver, they will be able to develop an insurance history, which will place them in the ‘good books’ of insurance companies when taking out their own insurance in the future.
2. Cover updates: If there’s been a development in your assets or lifestyle, it’s important to ensure your car insurance cover policy gets updated. If you give your second hand car away to someone else, update the details of the regular driver with your insurer.

But, why go through the hassle of giving your car away and ensuring that all long insurance paperwork – just to update the regular driver – are accurately done.

Perhaps you’re relocating, getting a new car upgrade or no longer find need in the use of your used car… If you’re about to experience a change in lifestyle, why not sell your second hand car privately to CarZar, get instant cash for cars, and use the money to improve your lifestyle or go to a dealership with the flexibility to haggle a good price on your new car purchase! We also buy financed cars.

All you need to do is:

Step 1: Go to www.carzar.co.za, select the appropriate car details and get a free online car valuation.

Step 2: Book an obligation-free inspection at your preferred location or CarZar Car Buying Centre.

Step 3: Accept our final offer and receive instant payment! We’ll take care of all the paperwork.

With CarZar, you can sell your car in 30 minutes!

The above information is simply a guide. Contact your relevant vehicle insurance company to confirm any policy, regulations, or terms and conditions related to the ‘regular driver’.