Is it illegal to charge friends and family for lifts in my car?

WHETHER it’s for the school run or a weekend road trip, offering friends and family a lift can be a convenient and eco-friendly way to travel.

But before you charge for your driving services, it’s important to know the legal and insurance implications to avoid hefty fines or invalidating your coverage.

Can you charge for giving lifts?

Giving lifts to friends or family can be a great way to travel together while sharing the cost of petrol.

Car-sharing platforms like and make it easier to arrange these rides.

However, it’s important to be aware that charging too much money for providing a lift can risk invalidating your insurance or even breaking the law.

Understanding the legal limits

There are specific laws in place that govern how much you can charge when giving someone a lift.

According to the Public Passenger Vehicle Act 1981, passenger contributions should only cover the running costs of the vehicle, such as fuel and wear and tear.

This means you can’t legally make a profit from providing lifts.

Exceeding these limits could have serious consequences, including fines or insurance issues.

Insurance and legal risks of charging for lifts

Liftshare said it calculates a suggested price per passenger for your journey based on the length of your trip and using HM Revenue and Customs Approved Mileage Payment Allowance.

Taking money beyond petrol costs risks invalidating your insurance.

Trade body the Association of British Insurers said:  “ABI motor insurers have agreed that your insurance cover will not be affected if your passengers contribute towards your journey costs including fuel, vehicle depreciation and associated vehicle running costs, as long as lifts are given in a vehicle seating eight passengers or less.

“This does not apply if you make a profit from payments received or if carrying passengers is your business.”

You also run the risk of breaking the law and being fined up to £2,500 if you try to make a profit from giving people a lift in your car.

Road users aren’t allowed to make a profit from lifts unless they have a valid taxi or private hire licence.

The dangers of offering paid lifts on social media

Social media groups offering lifts for cash within certain local areas have in the past been classified as illegal taxi services by police.

In 2018, Dorset Police investigated the “Bournemouth and Poole Town Lifts” group on Facebook after reports that as many as 5,000 people were involved in the illegal lift sharing service.

A spokesperson for Dorset Police told  “We are aware of several Facebook groups which have been created in order to share lifts in and around the Bournemouth and Poole area.

“When getting into a vehicle with an unlicensed and unvetted stranger, you have no knowledge of their background and risk your own personal safety.

“Before offering a lift in exchange for money, you should speak to your insurance company as this could invalidate your insurance and may result in your vehicle being seized by police, a fixed penalty or prosecution resulting in a fine, points on your licence or disqualification from driving.”

Can young drivers give their friends a lift

In 2023, plans were revealed that could see young drivers banned from giving their friends a lift in a bid to stop peer-pressure crashes.

Ministers are considering plans to stop new drivers under the age of 25 from carrying young passengers, as part of a “graduated driving licence”.

The ban would last for 12 months after the young driver gets their licence.

Support for Victims of Road Crashes, a group which advises the Department for Transport, has backed the ban.

Find out more

We look at eight things drivers should do to protect their cars from the cold and snow.

Find out how British motorists planning on driving abroad need to be aware of dash cam laws across Europe which could land them in hot water.

Meanwhile, drivers could face fines of up to £2,500 and even a ban from the roads by falling for so-called speed camera loopholes.

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