Car insurance - Giving your friends or family this Christmas a lift could void your cover
YOU could land a fine for giving your friend a lift off you make a simple mistake.
Car insurance myths BUSTED by cover provider Admiral
Drivers are being warned not to accept payment when giving their friends or family a lift as they could invalidate your cover and land you a massive fine.
You can actually be prosecuted with a £2,500 fine, as this action can be deemed as illegal operating as a taxi.
Motorists can accept some money to recuperate the costs of petrol but if the amount exchanged can be seen as the driver main some sort of profit then they could lose their cover.
Similarly, if you are advertising lifts as a cheap alternative to taxis on Facebook or other social media websites and ads you could face retribution.
Most insurers are unlikely to cover drivers charging passengers money in exchange for a ride.
There have been some prolific examples as of late where drivers got caught out and punished for advertising lift services on social media.
Earlier this year a Facebook group based in Bournemouth an illegal taxi firm was exposed after it was found over 5,000 people were involved.
Dan Hutson, Head of Motor at comparethemarket.com, commented to Express.co.uk: “By offering friends and family a lift you may think you’re doing a good deed but by accepting payments for the drive you might actually be invalidating your insurance premium.
“Although car sharing is now often included on standard motor policies, you should only accept a contribution for fuel and other running costs.
“It is important to remember that by asking for a charge that may lead to ‘profit’, it may be considered that you are operating as a passenger service for hire and profit.
“Check with your insurance provider that you are not crossing any lines to invalidate your policy.”
Information of the Gov.uk website states "You can be prosecuted if you receive payment for taking bookings or supply drivers for hire without an operator’s licence."
Car insurance: How to get the best policy
To become a taxi driver you need to be aged 21 or over and have a Transport for London (TfL) driver’s licence. To run a private hire business you will need 1 of 2 driver’s licences.
The 2 types of driver’s licence are:
• a small operator’s licence - up to 2 vehicles for private hire bookings
• a standard operator’s licence - as many vehicles as you like
Each licence lasts for 5 years.