15 hours Ago By Luke Chillingsworth
Motorists could be slapped with a staggering £2,500 fine for simply picking up friends and family members on Christmas Day due to a little-known driving rule. Car insurance policies are also at risk with individuals possibly under threat over the simple mistake many will be unaware of. Although assigning a designated driver and collecting family or friends is not a problem, charging individuals could cause some issues.
Some heading on longer trips may pool money together and split fuel costs as a way to pass around the burden. However, drivers found to be making a profit could be breaking ‘taxi touting’ rules and face severe consequences. This is because motorists would be seen as making money from an "unlicensed vehicle” which is illegal.
Derek Henry, Managing Director of the specialist taxi insurer ChoiceQuote , has urged drivers to not run the risk and decline any form of payment if offered. He said: “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.
"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 invalidating 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." Graham Conway, expert at Select Car Leasing confirmed that breaking the simple rule would almost certainly lead to invalidating insurance agreements.
Motorists cannot legally travel without a valid policy in place and invalidating one agreement will make it harder to secure another at a decent rate. Graham explained: “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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