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The price of petrol keeps shooting up and peak time traffic is a nightmare. So it makes sense to try carpooling to save money, combat the boredom of being stuck in traffic and decrease your carbon footprint.

Types of carpooling

Specific driver carpool: In this case, there will be a designated driver and car, and passengers pay a weekly/monthly rate towards things like petrol, parking and maintenance.

Alternating carpool: Here everyone takes turns to drive with their own cars on a daily, weekly or monthly basis.

Side hustle carpool: With apps like Carpool, you could use your car to earn some cash on an upcoming trip, accepting cash from strangers to share a ride with you.

Side hustle carpool: With apps like Carpool, you could use your car to earn some cash on an upcoming trip, accepting cash from strangers to share a ride with you.

INSURANCE 101

Whichever carpooling scenario you choose, it’s a good idea to let your insurer know if anything changes in your regular driving set-up as this can affect insurance cover and payouts. If money changes hands, things get a more complicated too. It could be seen by an insurer as a commercial transaction, especially if the money you’re receiving is more than what is necessary to cover petrol, maintenance, parking etc. You would then potentially need business insurance, or a special permit if you transport children or more than 12 people at a time.

If you are the owner of a carpool vehicle, it’s a good idea to relook your insurance cover – for useful extras such as roadside assistance, tyre and rim cover, or windscreen protection.