It’s the time of year when a designated driver at a Christmas party can be a godsend, but be wary of accepting cash as reward if you do give lifts as it may leave you out of pocket.

The news comes after some local authorities and councils are cracking down on young drivers advertising their services on social media. It’s thought that groups on Facebook are being set up explicitly to offer unlicensed taxi services.

Both Pembrokeshire Council and Dorset Police have indicated that they are investigating social media pages such as ‘Bournemouth and Poole Town Lifts’, after as many as 5,000 people were believed to be using the services.

Those caught acting as an unlicensed taxi service risk being hit with a £2,500 fine and seeing their car insurance invalidated which could prove extremely costly if involved in an accident.

GoCompare, which has researched the issue has suggested that many insurance policies prohibit passengers being carried in exchange for a reward, cash or otherwise.

Lee Griffin, chief executive of GoCompare, said: “The rising cost of motoring coupled with the current financial squeeze for many people has made lift sharing an attractive proposition.

“Most insurers will allow genuine lift sharing and there are loads of legitimate schemes across the UK.

“But drivers are not allowed to make a profit from their passengers and can only charge enough to cover petrol and other costs.”

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