Drivers warned of car sharing mistake that could cost them £2,500 this Christmas

Motorists have been warned that a seemingly simple way to make a little Christmas cash could cost them dearly.

With Christmas party season in full swing, people looking for designated drivers and the cost of living crisis biting, one car insurance firm is warning that using lift sharing to earn a little extra money could land motorists with a fine of up to £2,500 and leave them uninsured.

It’s common to offer a lift to friends and family and there are hundreds of local groups on social media that help arrange car sharing in UK towns and cities, where people offer a ride home to strangers in exchange for payment.

While it’s okay to give lifts to other people and to ask them to contribute to fuel costs, James Armstrong, CEO of temporary car insurance company Veygo, warns that if you’re doing it for profit it can have serious consequences.

He explains: “Under the Criminal Justice and Public Order Act 1994, so-called ‘taxi touting’, where an unlicensed vehicle is used as a taxi in a public place to carry passengers in exchange for money, is illegal. If you’re caught by the police, it’s considered a Level 4 offence and you could be fined £2,500 if found guilty. This would apply to any driver who is essentially using their private vehicle as a taxi service, making a profit, and not having the required taxi licences.”

While taxi touting covers soliciting for fares in public, anyone pre-arranging lifts also has to be careful to stay on the right side of the law.