Table of Contents
1. What Type of Taxi Work Do You Want to Do?
2. Check Your Car: Can It Be Licensed?
3. You Need the Right Driver Licence
4. Sort Out Your Taxi Insurance
5. Get a Private Hire Operator or Platform
6. Prepare Your Car for Passenger Work
8. Is Using Your Car as a Taxi Worth It?
If you have ever wondered, “Can I use my own car as a taxi?”, you are not alone. Many UK drivers want to earn extra income by becoming a taxi driver, especially with the demand for private hire work growing across cities and towns. The good news is that you can use your car as a taxi, but only if you follow the correct rules, licences, and safety steps. This guide breaks everything down in simple language with examples and tips to help you get started quickly and confidently.
1. What Type of Taxi Work Do You Want to Do?
In the UK, there are two main ways to use your vehicle for paid passenger work:
Hackney Carriage (Black Cab or Local Taxi Rank Taxi)
- You can pick up passengers from the street or taxi ranks.
- You can take bookings or accept passengers who hail you.
- These taxis must meet strict council rules.
Note: Hackney Carriage or Black Cabs are a specific type of vehicle and are usually not used for private vehicle purposes. This means that you will not be able to use your own car.
Private Hire Vehicle (PHV)
- All journeys must be prebooked through a licensed operator.
- Your car must be licensed as a private hire vehicle.
Rules around licensing vary depending on your local authority, so before you begin the process of becoming a taxi driver, make sure you understand your authorities’ rules and regulations. If you are in London, PHV rules are set by Transport for London TfL. TfL PHV guidance: https://tfl.gov.uk/info-for/taxis-and-private-hire/
2. Check Your Car: Can It Be Licensed?
To use your car as a taxi, it needs a vehicle licence. This is different from general car tax or an MOT. Each council sets its own rules, but most check:
- Condition of the vehicle
- Safety standards
- Vehicle age and mileage
- Insurance type
- Interior quality
If you are in London, see TfL’s vehicle licensing rules here: Apply for a taxi driver licence – Transport for London
To find your local council licensing rules: www.gov.uk/find-local-council
3. You Need the Right Driver Licence
A standard UK driving licence is not enough. To legally carry paying passengers, you need a taxi driver licence from your local council, or from TfL if you are in London. Most councils will require:
- Medical checks
- DBS checks including previous driving offences and convictions
- Knowledge tests
- Topographical skills tests
- Some authorities enforce age limits, for example London taxi drivers must be over 21 years old
GOV.UK taxi and PHV licensing overview: Driver licences for taxis and private hire vehicles – GOV.UK
TfL private hire driver licensing information: tfl.gov.uk/info-for/taxis-and-private-hire/licensing/private-hire-driver-licence
4. Sort Out Your Taxi Insurance
Standard car insurance does not cover work that involves carrying paying passengers. You will need:
Hire and Reward Insurance
This allows you to earn money from bookings. Read our guide to find out more about hire and reward insurance.
Private Hire or Public Hire Cover
- Choose private hire if all your work is prebooked. Find out more about private hire insurance here.
- Choose public hire if you work in a vehicle allowed to pick up from the street. Find out more about public hire insurance here.
You can compare insurance providers online or speak directly to insurers who specialise in taxi and private hire cover.
5. Get a Private Hire Operator or Platform
If you are a private hire driver, you must work through a licensed operator. Common operators include:
- Uber
- Bolt
- Free Now
- Addison Lee
- Local PHV firms
TfL operator licensing requirements: tfl.gov.uk/info-for/taxis-and-private-hire/licensing/private-hire-operator-licence
6. Prepare Your Car for Passenger Work
Once your car is licensed and insured, it must be comfortable and presentable. Councils usually expect:
- A clean interior
- Good exterior condition
- Clear display of licences and plates
- Working seatbelts for all passengers
- No damage that affects safety or comfort
But always check your local council’s guidelines as these rules may vary .
7. Costs to Expect
Becoming a taxi driver involves some upfront and ongoing costs such as:
- Driver licence fees
- Vehicle licence fees
- Taxi insurance
- Maintenance and repairs
- Operator or platform fees
GOV.UK taxi driver cost guidance: Driver licences for taxis and private hire vehicles – GOV.UK. Understanding what is needed helps you decide whether taxi driving offers value for your time and effort.
8. Is Using Your Car as a Taxi Worth It?
It can be a great option if you like flexible work and enjoy driving. Taxi driving allows you to:
- Set your own hours
- Meet new people
- Earn more during busy periods
- Work through an app or local operator
Always make sure your licences, insurance, and vehicle documents are always up to date.
Final Thoughts
Using your car as a taxi is a good way to earn extra income, but it is important to follow the correct steps. Whether you want to work through a private hire operator or aim to drive in London under Transport for London TfL, understanding the rules upfront will make your journey much smoother. Over 100,000 drivers choose Acorn Insurance. As the UK’s largest taxi insurance specialist, we know a thing or two about what taxi drivers need from their insurance. If you’d like to find out more about us and how we can help you get the right insurance, click here to see how we can help you get the right taxi insurance.