FIL wants to take friends to airport&get paid - insurance issues?

[Buel10]

Hello.

My Father in law has taken early retirement and is part of a large social circle of friends. His friends travel often and would like to pay him to be their driver to take them to and from the various airports they fly from.

Please can I ask if there will be any insurance issues with this arrangement?

[CrappoMan]

There will be no problem as long as he has hire and reward insurance for his vehicle. As what you have described makes him a private hire taxi driver.

[unclebulgaria67]

There will be no problem as long as he has hire and reward insurance for his vehicle. As what you have described makes him a private hire taxi driver.

 

Agree. Also don't you have to register if you are providing taxi services or is that just official taxis licenced by councils ?

 

What many people would do in this situation where they did not want to be in a taxi business with increased insurance, is simply to keep it as friends offering other friends a lift. Any money is purely to cover costs of petrol etc. As long as everyone is aware that it is purely friends helping friends and not a business arrangement.

[clarkenuttal]

I dont think this to be an issue. There's an arrangement being made between friends who want to compensate your father in law for the petrol, car usage and his inconveneance. If your father in law was picking up other random people or he was doing this as a profession I would've said he needs private hire insurance. However in this case I say he is fine. I am not a professional though lets see what others think

[Buel10]

Thank you all.

[Surfer01]

I dont think this to be an issue. There's an arrangement being made between friends who want to compensate your father in law for the petrol, car usage and his inconveneance. If your father in law was picking up other random people or he was doing this as a profession I would've said he needs private hire insurance. However in this case I say he is fine. I am not a professional though lets see what others think

If they pay hime for the usage of the vehicle and his inconvenience then it can be argued that is he running a private hire taxi business. If only for fuel, then a different story.

However in the event of a claim by one of the friends, how would they go about proving that the money was just for fuel especially if he was given a little extra as the fuel should be up to the drop off point and probably not cover the cost of the return journey?

Too many loopholes for an insurance company to wiggle out of paying a claim plus too many points for the police to prosecute. IMHO not worth taking the chance.

[BazzaS]

If they pay hime for the usage of the vehicle and his inconvenience then it can be argued that is he running a private hire taxi business. If only for fuel, then a different story.

However in the event of a claim by one of the friends, how would they go about proving that the money was just for fuel especially if he was given a little extra as the fuel should be up to the drop off point and probably not cover the cost of the return journey?

Too many loopholes for an insurance company to wiggle out of paying a claim plus too many points for the police to prosecute. IMHO not worth taking the chance.

 

This.

 

If it is just petrol money being paid, he is making a loss and "just helping friends".

Once it starts becoming "contribution towards the car, for his time / inconvenience" and any suggestion he is or could be 'making something on top" : that is the 'reward' element of 'hire & reward'.

 

The title of the thread covers it : "and get paid". If it was "reimbursed for the fuel" : fine.

But once it is "paid" (and the sort of mileage associated : if his mileage soars the insurers might start asking why.....) : hire & reward insurance needed.

[CrappoMan]

The main difference is that he is not just "car sharing", which would mean he is already making the journey and is just looking for people to split the cost of the journey with.

He is making a specific journey to benefit of a third party, which he wouldn't otherwise be making on his own. THAT makes him susceptible to claims of being a taxi service.

[sameagle]

I thought of doing a car service to and from Manchester Airport when I got a new car last year.

 

I'm retired, and it was to be for adult holidaymakers only.

 

Surprisingly, I would have had to do "The Knowledge", in spite of being able to research the best route well in advance, unlike an "ad hoc" taxi driver.

 

My advice is to not bother, it's a can of worms, unless you register properly.

 

The taxman might take a keen interest, too!

 

Sam