DRIVERS could be slapped with a £300 fine for giving their mates a lift.
Motorists may be temped to rides to friends to make some extra cash on the side.
Drivers could be slapped with a £300 fine for giving their mates a liftGETTY_HUB
But some insurance policies do not permit drivers to accept any sort of payment for a lift as this could be perceived as your car being used for hire and profit.
However, accepting petrol money is fine as you’re unlikely to make a profit from this.
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If you giving lifts is found to be purely for financial gain – or they are being advertised as a service – then the driver can have their cover invalidated.
And driving without insurance could to a fine of at least £300 and six penalty points, Gov.uk states.
Dan Hutson, Head of Motor at comparethemarket.com, said 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.
“Although car sharing is now often included on standard motor policies, you should only accept a contribution for fuel and other running costs.
“Check with your insurance provider that you are not crossing any lines to invalidate your policy.”
If motorists want to generate income from offering lifts to people, then they will need private-hire car insurance.
And a private-hire driving licence may also be needed.
It’s worth knowing that putting your insurance in someone else’s name, even if it’s a parent, is known as fronting and can result in your policy being invalid.
It’s illegal and drivers could end up being fined up to £5,000 if taken to court.