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Drivers can be fined for charging mates for a lift in their car
‘Taxi touting’ is a serious offence and can even result in insurance deals being invalidated
Drivers might want to think twice about asking their friends for petrol money when next on taxi duty thanks to a little-known law that could land them in a lot of trouble.
While chucking in a couple of quid to cover the cost of petrol has become somewhat normalised amongst friends and families giving lifts, drivers could in fact face some hefty penalties if they’re caught in the act.
While it is perfectly legal for drivers to accept petrol money or reimbursement of costs for travel, those found making any profit from these payments or taking payments for giving lifts could be fined as much as £2,500.
Tim Schwarz, a spokesperson for motoring experts at Moneybarn, offered a little more insight into this peculiar law, giving a stern warning about the dangers of what is known as ‘taxi touting’.
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He told the Daily Express: “Taxis home from the airport, train station and even nights out are notoriously expensive [and] in this scenario, many of us turn to the kindness of friends and family to give us a lift home.
“But did you know it’s illegal for them to accept payment for this service?”
He continued: “Cab services are very heavily regulated in the UK, especially since the rise of Uber in the modern age, so accepting money when unlicensed is not okay in the eyes of the law.
“Without the right documentation, be prepared for a £2,500 fine, six licence points and even seizure of your vehicle.”
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However, experts point out that insurers have agreements in place that allow drivers to take certain payments to cover private lifts as long as they do not profit from them.
Neil Greig, Policy and Research Director at IAM RoadSmart, explained: “The government wants to encourage car sharing to reduce congestion so there are agreements in place with all car insurance companies that will allow you to take expenses from car share friends without invalidating your cover.
“However, if you over charge them or start to do it for profit, your insurance may be invalid. You may also be breaking local regulations set by your council who licence private hire cars.
“If you plan to car share always check with your car insurance company first and be transparent about what you plan to do and how often it may happen.”