This post was published on Nov 18, 2025 | Updated on Nov 18, 2025
Carpooling, or as many South Africans call it, ‘lift club’, is a smart, greener way to share costs and reduce congestion. You can pop on the tunes, share a playlist, and yes: even make your commute more social! But with more people in your car comes more responsibility. At iWYZE, we believe you should drive with confidence. But to do that, it’s critical to understand how your carpooling habits can affect your insurance cover (and what you need to disclose to avoid any nasty surprises).
If you’ve read our post on safe driving tips recently, you’ll know that mindset, vigilance and honesty go hand in hand. But now, let’s snap to it, and see how that applies to carpooling.
Carpooling with Colleagues, Friends and Family: Generally OK (if no profit is involved)
In Mzansi, many insurers treat lift clubs or carpooling among colleagues as a friendly cost-sharing arrangement, not a business. In other words, you’re splitting fuel, toll or maintenance costs; you’re not making a profit or offering a “paid transport service” or it’s occasional, not your main income source.
Under those conditions, your standard personal car insurance generally won’t penalise you for carpooling. For example, many insurance professionals note that lift-club arrangements are typically viewed as private use and won’t, under any circumstances, affect your premium or coverage status.
However, full disclosure matters! If your insurer finds out later that the true use deviates from what was disclosed, they may reject your claim or void your policy for non-disclosure.
When Carpooling Crosses into “Business Use”: Watch Your Back
Problems often arise when carpooling blurs into business territory. The red flags (no, it’s not a carnival, it’s an impending issue with insurance!) include: charging more than just your share of fuel or maintenance (for example, you make a profit); regularly transporting people (who fast become clients, passengers) as a side hustle, and, effectively doing ride-hailing or client visits in a professional capacity.
Insurers, both locally and abroad, draw a line: once your operations resemble a commercial or business activity, your personal policy may not suffice. Many personal policies explicitly exclude coverage for “business use” unless declared and rated accordingly.
For example, whether you’re in Summerstrand or Claremont or Sandton, in markets where ride-sharing is potentially more common, a personal auto policy typically doesn’t apply once the driver is “on the app” or carrying paying passengers. And it makes sense: shifting into this space is generally treated as being a commercial endeavour, with its own set of risks and challenges.
Analysts and insurers hold similar views: if you are regularly using your car for transporting others for compensation, that qualifies as business use. The bottom line? It must be declared.
The iWYZE Position: the Standard Cover You Love
Your car may be parked for much of the week or driven every day. Either way, your iWYZE premium remains unchanged. What matters is that when you do drive, you have peace of mind: if an accident happens on those days, you’re covered (as long as your disclosed use, how you’re using your vehicle, is accurate). This means occasional carpooling with zero profit is acceptable under iWYZE standard cover; if your usage shifts to business (friends become clients; no more free rides!), you must disclose it, and not doing so (disclosing business use) can lead to claim rejection or cancellation.
At iWYZE, our priority is fair, transparent cover, not complicated gimmicks. We want you to drive with confidence, always knowing what your cover allows (and doesn’t!).
Consulting, Client Visits & the Occasional Business Use
Here’s a scenario many professionals face: you're an accountant, lawyer or consultant, and sometimes drive around Sandton or Cape Town’s CBD to see clients. The question you probably ask is, does that count as “business use”?
Yes, in many policies it does. Even though the usage may be as often as you’re seeing your mother-in-law (as occasionally as possible!) transporting clients or performing professional work in your car is generally not personal use. Yes, even you’re cruising for a bunny chow between meetings in Durban! It often requires the vehicle to be insured with occasional business (or business-use) endorsement. Now, if you don’t disclose it, the following could happen:
- A claim resulting from those drives may be rejected
- You expose yourself to potential liability if your client is injured
- You risk invalidating your entire cover
If you're unsure whether your driving qualifies as business use, speak to us. It’s better to disclose and pay a fair premium than to risk losing your cover when you need it most.
What Happens If You Don’t Tell the Truth
Non-disclosure is a serious issue in insurance. When you apply for cover, you agree to disclose how your vehicle will be used. If later a claim is made under circumstances that differ materially from what was disclosed, your insurer has the right to:
- Reject the claim
- Void the cover (backdated)
- Cancel your policy
If you didn’t disclose that your car is regularly used to transport clients in and around Gauteng, for instance, and an accident happens during one of those trips, your insurer might deem that use as outside the scope of your declared risk: and refuse to pay out. At worst, the insurer may even claim misrepresentation, and you could lose not only claim benefits but also the premiums you’ve been paying.
How to Stay Covered & Stay WYZE
Here are some best practices to ensure your carpooling or occasional business use doesn’t jeopardise your insurance:
-
Be upfront at application time
Clearly state whether you’ll occasionally carry passengers for free, or occasionally see clients in the car. -
Avoid profit-driven agreements
If you start charging more than cost-sharing (fuel, tolls, maintenance), let your insurer know. -
Regularly review your usage
If your use pattern changes (for example, you begin doing rides for pay or more client travel), disclose it immediately. -
Document your carpool practices
Keep notes or small agreements for cost-sharing so that you have proof the arrangement was non-commercial. -
Choose proper cover endorsements
Ensure your policy or add-on covers “occasional business use” if this is applicable. - Talk to us! If in doubt, ask iWYZE. Better clarity now saves heartache later.
Why This All Matters (Beyond the Premiums)
Carpooling and occasional business use aren’t just a technicality. They can affect your liability exposure, for instance, if a passenger is injured, you could face claims from them. You could also face claim payout certainty, wherein even valid claims may be denied if your vehicle usage isn’t properly declared. Plus, consider your peace of mind: the last thing you want is stress during a claim because of a technicality.
At iWYZE, our aim is simple. Really simple. We offer reliable, direct cover so you can live your driving life worry-free. But that requires mutual trust: we need you to be transparent about how your car is used.
In Short
Carpooling is a great way to save fuel (and goodness knows, it costs enough!) and even reduce stress. Plus, you’re fostering community by spending time with colleagues and friends. For most personal insurance policies (including those with iWYZE) it’s generally acceptable if it’s non-profit, occasional, and most importantly: disclosed! But if your use becomes more business-like, in the sense that you have regular client visits, or are transporting passengers for payment, you must inform your insurer and upgrade to the appropriate cover.
We won’t penalise honest clients who simply share rides. Never. What we do take seriously is non-disclosure or misrepresentation. If you’re already a policyholder with iWYZE and your usage has evolved, reach out to us. Transparency keeps you safe, and, ultimately, ensures your cover is real when you need it.
