If you accept payments your insurer may consider that your car is being used for hire or reward!
A warning is being issued to drivers about the risks involved in giving people lifts in their car, especially if the passenger pays for the privilege.
Most of us wouldn’t think twice about giving somebody a lift but the fact is that doing so could land you in hot water, especially if you make a profit from it!
You could invalidate your car insurance policy if you give someone a lift in your car and accept payment from them.
Some car insurance policies do not allow the driver/s named on the certificate to make money by giving people lifts, whilst others will not cover drivers who are providing lifts in their car for a number of reasons, one being if they gain financially from the favour.
However, there are some proviso’s concerning giving people lifts in your car. Taking money now and again from friends or family is generally accepted so long as the money is going towards fuel costs or on the upkeep of the vehicle BUT the amount paid mustn’t include any kind of profit – this could look to your insurer as though your car is being used for ‘hire or reward’ and as a result you could invalidate your policy.
Private car insurance policies do not cover drivers who gain financially from giving people lifts and as many policies state, if drivers are taking money from passengers and making a profit, they could be looked upon as using their car for hire or reward.
Drivers who use their car as part of a lift-sharing scheme, or are considering joining one, are being warned to check with their insurer first as they might need private-hire car insurance instead of standard private car insurance as they will not be covered on this type of policy.
Some standard motor policies do include car sharing, however you should only ever accept a payment which covers the cost of fuel or other running costs.
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