“Recruiting fellow villagers to carpool home for the New Year. I have 3 seats left, fast and convenient, safe. Welcome to call.” Mr. Yang posted a “carpool” notice on 58.com, planning to depart from Guangzhou on February 5 and return to Lengshuitan, Yongzhou, Hunan. As the Spring Festival approaches, similar carpool notices have begun to flood websites such as 58.com and China Carpooling Network.
However, although carpooling may seem convenient, it also comes with certain risks. For example, whether carpooling constitutes “changing the vehicle’s use for illegal commercial operation” is still debated, and you might face the awkward situation of insurance companies refusing to pay in case of an accident.
Experts recommend carefully choosing carpool partners, trying to sign a “Carpool Agreement” to clarify rights and responsibilities, and purchasing relevant comprehensive travel accident insurance based on your own situation to effectively reduce travel risks.
Is “carpooling” considered “commercial operation”?
For many who can’t get train tickets or can’t bear the crowds on trains, carpooling is undoubtedly an attractive option. Xiao Chen, who works in Guangzhou and plans to return to his hometown Yichun, Jiangxi for the Spring Festival, has had no luck with online or phone bookings for train tickets. With a driver’s license, he thought of carpooling and recently found a fellow traveler online.
“The other person has a private car. The carpool fee is 200 yuan per person, nearly 300 yuan cheaper than a soft sleeper ticket. If all goes well, the whole trip takes only about 8 hours, a bit faster than the train, departing in the morning and arriving in the evening.” Xiao Chen said that he and the car owner take turns driving, so neither gets too tired, and they can also chat about their hometown along the way.
But Xiao Chen admitted that carpooling also carries some risks. “Mainly because we don’t know each other’s driving skills, and I’m not familiar with the car condition or road conditions. If something unexpected happens, how to deal with it is still a question.”
It’s worth noting that some car owners even use “carpooling” as a cover for “passenger transport operations.” A car owner recruiting for a Guangzhou-to-Yongzhou carpool told reporters that his car is a 7-seat business van, which makes round trips between the two cities every Spring Festival travel season. Currently, four seats have been reserved, and he’s still looking for three more people to carpool. When asked how compensation would be handled in case of an accident, he vaguely mentioned that his car has “full insurance” and there wouldn’t be any problem.
According to general car insurance policies, if the car owner changes the use of the vehicle (to carry passengers), significantly increasing the risk, or if injury or death occurs due to illegal or unauthorized passengers, the insurance company is not liable for compensation.
Liu Jianyi, chief lawyer of Guangdong Insurance Lawyers Network, believes that if carpooling only involves sharing fuel costs, tolls, etc., and the driver or car owner does not gain extra profit, and it’s occasional, it can’t be said to have changed the nature of vehicle use or constitute illegal operation. In case of an accident, the insurance company should provide reasonable compensation. “Moreover, whether it’s ‘changing the nature of vehicle use or illegal operation’ must be determined by traffic management authorities, not the insurance company.”
But experts from PICC Property and Casualty Company Limited Guangdong Branch emphasize that if the driver or car owner gains extra profit, it can be considered a change in the use of the vehicle, and liability exemption should apply according to the policy terms. In addition, if the vehicle violates safety loading regulations, the insurance may also refuse to pay or offer partial exemption.
Recommended to purchase comprehensive travel accident insurance
PICC Property and Casualty Company Limited Guangdong Branch reminds that if a private car is used for carpooling over a long period, there are significant technical risks. Even if you choose to carpool, you should select a vehicle in good condition and not frequently used for carpooling.
In the event of an accident during carpooling, if it’s the other party’s fault, the passengers are covered under the “third-party liability insurance” of the at-fault vehicle, and compensation will be provided by the responsible vehicle. If the carpool car owner or an authorized legal driver is at fault, the insurance company should fulfill the compensation responsibility according to the insurance contract.
However, from the insurance company’s perspective, carpooling increases the risk of vehicle use. The car owner may not be familiar with the various carpool participants, whose driving skills vary, potentially increasing the chances of fraud, robbery, or collision accidents during vehicle use. This could lead to a significant increase in risk and subsequent insurance claims being denied.
Even if the insurance company compensates, injuries or deaths of passengers are covered under the passenger liability insurance, which currently is generally insured at 10,000 yuan per seat. The compensation received after a claim is quite limited.
For the safety of yourself and your carpool passengers, Allianz suggests that car owners carefully choose carpool partners during carpooling, verify that drivers have a valid license, and comply with traffic laws. From a risk management perspective, it’s recommended to insure all vehicle seats with passenger liability insurance and opt for higher coverage amounts where appropriate.
Another more scientific approach is for carpoolers to purchase comprehensive travel accident insurance based on their own situation. This type of insurance generally covers accidental injury incidents occurring on vehicles (including self-drive), trains, airplanes, and other modes of transportation, providing protection for accidental death, disability, and burns, and features low premiums and strong relevance.
Of course, purchasing insurance is only part of safety protection. Allianz reminds car owners to remember the insurance company’s contact number, understand the claims process and precautions, as well as road rescue services.
Carpooling Tips
1. Confirm carpooler information. Record details such as the carpooler’s name, age, ID number, personal and family contact information. It’s best to carpool with someone you know.
2. Clarify carpool-related costs. Especially the sharing of fines due to traffic violations and the cost of vehicle repairs if issues arise.
3. Signing an agreement and purchasing insurance are very necessary.
4. Plan your time reasonably. The total journey should not exceed ten hours, avoid night driving, prevent fatigue, and do not display valuable belongings.
5. The car owner and co-passengers should send each other’s information to at least one friend or family member for contact purposes in case of problems, and let the other party know this intentionally.
6. Female car owners or passengers should be accompanied by a familiar adult male relative.
7. Both parties should familiarize themselves with the vehicle model used and the driving skill level of each driver, especially whether they have experience driving long distances.