Car Club Membership and Insurance Explained

We explain the benefits of using car clubs as well as providing some advice on how car club insurance works.

What is a Car Club?

Fundamentally a Car Club is a rental company but instead of being restricted to offices and opening hours, it allows its users to hire a car as and when they need to drive.

A Car Club can be a group of people who have an arrangement to share a car. However, when we refer to a Car Club, we mean a rental company. The reason being, the company will have measures in place to provide elements of insurance, contractual agreements with its users and controls in place for the safe return of vehicles. In essence, there’s a lot less risk involved.

What do Car Clubs do?

Car Clubs will have a fleet of cars dotted around available for customers to book as and when they need to. Most companies will require customers to book online or through an app which means cars can be booked and collected 24 hours a day.

Drive away for the day, maybe to the seaside, but just beware there are usually limits to how far you can travel in a day so it’s worth checking the company's policy before you travel.

Then when you’re done, return the car to where you found it, simple.

How does Car Club membership work?

Prices vary from club to club and you can pay hourly, daily or annually depending on how much you think you may use a car. But it’s what you save that really counts.

Having a car on the road can be extremely costly during the course of a year. As you don’t own the car, so there’s need to pay for road tax, motor insurance, costly maintenance bills or parking permits.

What’s more, you don’t have to store it! If you find it difficult to park in your area or simply don’t have the space, then a car club membership could be the solution.

Do I need Car Club Insurance?

As we mentioned, you won’t need a regular insurance policy as the car does not belong to you. Due to the Road Traffic Act (RTA). However, there must always be an element of insurance in place. The RTA specifically refers to public liability insurance which is a must in the UK, but companies like Zipcar will provide their customers with a little more cover on top provided they stick to certain rules e.g. no drink driving.

It’s important to remember that even when insurance is provided within the cost of membership, an excess may still apply if you cause damage to the car. You can cover yourself for your Car Club excess as well as regular car hire excesses with our Europe policy. In addition, the policy would cover windows, undercarriage, roof, tyres and headlights which are usually not covered by damage waivers from car hire companies or car clubs.

What we don’t include cover for you excess if you damage the interior or the contents of the car so be a little careful with drinks etc. Your Car Club must be a UK club for this cover to apply and usual terms and conditions will apply too. 

We hope this encourages more people to take up a new way of thinking about the way we drive.

Why choose a policy from insurance4carhire?

Excess cover is often offered when you pick up your rental car, but at a high cost - between £9 and £20 per day. A policy from insurance4carhire will cost you from £12.79 per trip or from £46.99 per year* and will cover your excess - up to £6,500 per claim. 

About the author

Adam Summersby - blog author, car hire excess insurance business unit directorThis is a marketing article from insurance4carhire by our car hire excess insurance business unit director, Adam Summersby. Adam is a respected leader with 11 years’ varied experience in niche personal and commercial lines insurance, including caravan, site operators and excess reimbursement, with proficiency in leadership, sales and account management.

Security Icon


Our payment systems are verified by VeriSign.

FAQ Icon


For more information, or to find the answers to frequently asked questions please consult the FAQs.

Help Icon


Haven't been able to find the answer to your question using the FAQs page? Visit our contact us page.

Payment Icon


We accept payment from Amex, Maestro, Mastercard and Visa cards.