In this country, asking your friends for gas money could actually land you a fine

If you’re the friend who often volunteers to be the designated driver, you might think nothing of asking your pals to chip in for gas money, but if you live in one specific country, you could end up with a fine.

Topping up the tank isn’t cheap, so if you regularly find yourself driving your friends around it makes sense to ask them to help cover the costs.

But drivers need to be aware that if they don’t stick to the rules, they could end up invalidating their insurance and even getting a hefty fine.

Here’s how to make sure you don’t end up on the wrong side of the law.

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Taking gas money from your friends could result in a fine

Picture the scene: you and your friends plan a day trip together, and you volunteer to drive everyone. 

Of course, before you set off, you’ll need to make sure your car is topped up with gas, and your friends all offer to throw in some cash. 

Sounds straightforward, right?

But if you are a driver in the UK and you happen to take more gas money from your friends than you spend on fuel, then you could end up invalidating your insurance, which could be seriously bad news if you happen to get into an accident. 

 “It might seem harmless to ask a mate for £10 when the fuel only cost you £5, but insurers may view that as profit,” car insurance expert from Money Supermarket, Alicia Hempsted, told Wales Online. 

“That small mark-up could shift you into the ‘hire and reward’ category, which entails transporting people for money, which isn’t covered by most personal car insurance policies.

“If you’re in an accident under these conditions, your insurer could reject your claim or even cancel your policy entirely. That’s not just costly – it could lead to fines or prosecution for driving without insurance.

“There’s a clear line between sharing costs and making a profit.

“HMRC and the Association of British Insurers both acknowledge that genuine cost-sharing is allowed. But the moment you start earning, even a small amount, it could be viewed as commercial activity.”

Want to drive a friend without running the risk of a fine?

If you want to be able to drive your friends without risking a fine, the rules are pretty simple. 

Hempstead explained that to keep on the right side of the law, you should only ever ask passengers to cover what the trip actually costs – this includes fuel and vehicle running costs. 

This is set at 45p (around 60 cents) per mile, according to HMRC.

“Avoid making any kind of profit – that’s what can turn a friendly lift into a commercial transaction in the eyes of insurers,” she added.

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