Car insurance – How giving your friend a lift could invalidate your insurance

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Giving your friend a lift doesn’t will seem like something that is particularly worthy of a fine or retribution for any reason, but you can run into some trouble by doing so. 

Providing someone with lifts is completely innocuous until you start accepting money for that lift. 

If you do accept money for the lift from one of the passengers then you could invalidate your insurance cover.  Some insurance policies do not permit drivers accepting payments of any form for lifts. 

However, the driver may accept some money from passengers to cover the costs of fuel for the trip or something of that nature. 

If the lifts are found to purely for financial gain or they are being advertised as a service then the driver can have their cover invalidated. 

The reason for this is because it could be perceived by your insurers that your car is being used for hire and profit services which could see your cover invalidated. 

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. 

“It is important to remember that by asking for a charge that may lead to ‘profit’, it may be considered that you are operating as a passenger service for hire and profit.

“Check with your insurance provider that you are not crossing any lines to invalidate your policy. 

If motorists do want to be generating income from offering lifts to people then hey will need private-hire car insurance.

In addition to this, a private hire driving licence may also be required as it is a taxi service of sorts

(Excerpt) Read more Here | 2019-02-08 07:01:00
Image credit: source

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