It appears to be school prom season again, so I’d like to remind classic car owners (or any car owners!) that it is illegal to be paid (ie hire and reward) to drive passengers to a Prom or any other function (bar two very specific exceptions – see below). There’s always a clamour to find a suitable vehicle to arrive in, but don’t get caught up in the excitement and run the risk of getting into trouble!
It is entirely acceptable to provide your car and your chauffeuring skills on a voluntary basis, and I’d imagine there is no problem with being paid reasonable expenses – ie a bit of fuel money. But being paid above and beyond this is where danger lurks. In short, to carry passengers for hire and reward, you are required to be licensed – yourself and the car. The only legal way to do it is to hire the car out as a self drive – which may require a separate insurance policy.
It is also entirely acceptable to be paid hire and reward if you use your classic car to provide transport for weddings and funerals. In fact, it can help bring in some useful income to cover repair costs. You should definitely check that your insurance company is happy to do this – some offer specific policies if you find yourself doing weddings on a regular basis.