UK drivers who accept petrol money from friends warned of £2,500 fine

Motorists who accept cash from friends or family members for petrol and diesel could be slapped with a hefty £2,500 fine. Experts stress there is no harm in accepting a "few pounds" to cover the cost of travel and wear and tear. However, drivers who ask for too much and turn a profit could be in breach of little-known rules.

Specialists claim this could be considered an illegal unlicensed taxi service, which would not be covered in motorists' car insurance policy. Ian Wilson, car insurance expert and Managing Director at Tiger.co.uk, stressed it could see individuals hit with hefty penalties.

Ian said: "Sharing a car is a great way to split the cost of your journey and reduce your carbon footprint. Most drivers are more than happy to offer a friend or a co-worker a lift, and there is nothing wrong with accepting a few pounds from passengers to help cover running costs, particularly given the fluctuating prices of fuel.

"But issues can arise if you are making a profit from doing this, as it can be legally classed as a 'hire or reward' transaction. This would require taxi insurance rather than standard car insurance, which typically only provides cover for social, domestic and pleasure use.

"As this is a relatively unknown law, many unwitting motorists could be caught out and risk having their insurance invalidated and slapped with a hefty fine."

According to Tiger, police forces have been cracking down on individuals who use social media platforms to arrange illegal 'cash for lifts' schemes.

These groups have thousands of members with individuals making up to £300 per night buying and selling lifts. However, Ian explained that road users could avoid being caught out if they take the right measures.

Ian added: "To make sure you aren't benefitting financially from your act of kindness and stay on the right side of the law, you can use legitimate and regulated ride-sharing apps. These calculate a suggested contribution per passenger for your journey based on the length of your trip.

"Taking steps like this will ensure passenger costs offset actual running costs and no profit is made, therefore unlikely to invalid your car insurance."