Drivers need to be uber careful before charging for lifts

Drivers offering lift-shares are only permitted to ask passengers for a contribution towards fuel and other running costs. The amount charged must not include an element of profit, otherwise insurers consider that you are operating as a passenger service for hire and profit which would invalidate your insurance.  Lift-sharing is also not permitted in a vehicle seating more than eight passengers.   

Drivers also need to make sure that they are insured for the journeys they make.  Most policies cover social, domestic and pleasure use, which includes commuting to your main place of work.  However, if you drive to branch offices or business meetings, then you’ll need to extend your cover to include business use.  Typically this will also cover car sharing with colleagues.

Uber taxi service app

Uber is a smartphone taxi company which connects passengers directly with drivers through a mobile phone app, rather than using a centralised booking service like a traditional private hire cab service.  Customers using the service book and pay for lifts through the app.  While Uber does not consider itself as operating a taxi service, insurers do and require Uber drivers have appropriate taxi insurance.

“If you are thinking of using your car to make money through Uber or other ride-sharing apps, you will not be covered by car insurance.  You will need commercial private hire vehicle insurance offering cover for hire or reward.”      

For more information on lift-sharing and using your car for business visit: 

gocompare.com/car-insurance/insuring-your-car-for-work-use/

For more information on ‘Insurance for Uber drivers and passengers’ visit:

gocompare.com/taxi-insurance/uber-and-other-ride-sharing-apps/