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Car insurance by the hour - What are the dangers?

Feb 14, 2017

3 min reading time

Sometimes something sounds too simple to be true. This also applies to Nationale Nederlanden's temporary car insurance Gappie. Through an app you can easily add temporary additional insurance to a borrowed car. The app is not yet available, but we already point out the dangers of lending or renting out a car.

As a borrower, you can activate the app the moment you start driving the borrowed car. During the loan period, the car is WA-casualty insured. In case of damage, Nationale Nederlanden takes over the claim settlement. So the claim settlement does not go through the car insurance of the car itself. In the coming months, the insurer will test the app. No doubt they will run into gaps that were not considered during development. At first glance, it seems fraudulent. How will the insurer verify that, for example, a collision against a bollard was not simply caused by the owner himself?

What are the dangers of renting out your car?

To rent out your car, you need permission from your insurer. Therefore, if you rent out your car without permission, you run the risk of no coverage. In case of damage, your insurer can be sued by the victim. The insurer of your car is obliged to compensate the damage, but then the damage can be recovered from you. There are also dangers in lending.

You are responsible for damages and fines

Damages caused with your car are on your account. The same goes for fines sent to your home. If you are WA or WA limited casco insured, you will also not get your own damages compensated in case of an accident caused by the borrower. In addition, you also lose claim-free years, which can cause your car insurance premium to rise sharply in the coming years. Do not underestimate this risk, because the premium differences can amount to hundreds of euros, calculated over several years.

Also, the deductible is your problem

When damage occurs, there is often a deductible. This is the car owner's problem. If the damage occurred during lending, you can try to hold the borrower liable. Often it becomes a difficult story to recover money from the borrower. The person who caused the damage cannot recover the costs from private liability insurance. This is because damage caused by a motor vehicle is excluded from coverage.