Motorists have been warned that lending a helping hand to friends and family needing a lift this festive season could land them with a hefty fine.
It’s common at this time of year to rely on people for lifts when enjoying the festivities. Drink driving laws and increased police patrols mean that motorists won’t drive and are turning to friends and family to get to and from parties.
And while it is fine to give lifts, an issue arises if money changes hands for the service thanks to a rule many will be unaware of. Asking for too much cash in exchange for a lift could see drivers accused of being an unlicensed taxi – the consequences of which can be serious.
An insurance expert has told drivers to be careful about taking cash for the favour as it could land them with a fine of up to £2,500 if they accept the payment, reports Birmingham Live.
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Derek Henry, Managing Director of the specialist taxi insurer ChoiceQuote, explained: “Whilst it may seem like a simple act of generosity to offer lifts to your friends and family, drivers need to be aware of the legal ramifications that may come with it. It is not uncommon for drivers to ask for some cash towards petrol costs when taking friends and family on a long trip.”
But he said that while it was ok for the driver to take money to cover their fuel costs, drivers should be aware that they should not be making a profit from the journey because to do could see their insurance invalidated.
He said: “While it may not be illegal to take payment for fuel costs when taxiing your friends and family, making a profit from this could land drivers [a] hefty fine and invalidate their insurance. This is due to most providers not covering those who are illegally making a profit.
“To make a profit from giving lifts, road users must have a valid taxi or private hire licence.
“It is advised to refrain from taking any form of payment from loved ones when offering them a lift to ensure that no laws are broken. Drivers are therefore advised that if they choose to offer a lift to loved ones, another form of repayment for doing so would be to take it in turns being designated driver.”
It’s a warning which has been echoed by expert Graham Conway, from Select Car Leasing said: “Before offering regular lifts in exchange for money, you should also speak to your insurance company, as making a profit could invalidate your insurance. Road users aren’t allowed to make a profit from lifts unless they have a valid taxi or private hire licence.”
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