What Is The Difference Between Private Hire and Public Hire Insurance?
Looking for taxi insurance? Find out the main difference between private hire and public hire insurance for UK taxi drivers.
Becoming a taxi driver in the UK can be a rewarding and flexible career path, whether you are looking for full-time work or additional income. In this guide, we’ll break down how to become a taxi driver, the key requirements and the differences between public hire and private hire licences.
Taxi driving appeals to many considering a career change as it is an opportunity to work and earn on your own terms. Whether you plan to work independently or through an operator, the job offers a varied working day and the chance to interact with people from all walks of life.

Working as a taxi driver comes with a range of practical and lifestyle benefits. One of the biggest advantages is flexibility. Many drivers appreciate being able to choose when they work, allowing them to fit driving around family life, other employment, or personal commitments. This flexibility also links closely to earning potential, as drivers can work busier hours when demand is higher, such as evenings, weekends or during local events.
On busy days/nights, such as weekends and bank holidays, there is often consistent demand for taxi services , with passengers relying on taxis for everyday travel, nights out, airport journeys and essential appointments. This demand provides a level of job stability that appeals to many drivers. Alongside this, taxi driving offers a relatively low barrier to entry compared to some careers, as formal, academic qualifications are not required. Instead, the focus is on licensing, safety checks and local knowledge. Many drivers also value working locally, often within their own council area, which can reduce commuting time and help build familiarity with regular passengers and routes.
| Benefit | What it Means in Practice |
| Flexible hours | Taxi driving allows you to choose when you work, making it easier to balance driving with family life, studies, or other employment commitments. |
| Steady demand | Taxis are relied upon for everyday journeys, airport transfers, nights out and essential travel, creating consistent demand throughout the year. |
| Earnings control | Drivers can influence their income by working during peak times, covering busy locations, or increasing hours when demand is higher. |
| Local working | Most taxi drivers operate within their local council area, reducing long commutes and helping drivers build familiarity with routes and passengers. |
| Accessible career | You do not need formal qualifications to become a taxi driver, as the focus is on licensing, safety checks, local knowledge and suitability. |
Becoming a taxi driver in the UK is a structured process, but it is generally straightforward once you understand what is required. While exact rules vary by local council, most applications follow a similar journey. It begins with checking that you meet the basic eligibility criteria, such as age requirements, holding a valid UK driving licence and having the legal right to work. From there, one of the earliest decisions you will make is whether to pursue a public hire or private hire licence, as this determines the type of work you can legally carry out.
After choosing your licence type, the process moves into a series of checks and assessments designed to ensure passenger safety. This usually includes an enhanced DBS check, a medical examination and local knowledge or topographical tests. Many councils also require safeguarding training, reflecting the responsibility taxi drivers have when carrying vulnerable passengers. Once these steps are complete, you’ll need a suitable licensed vehicle and the correct taxi insurance, as standard car insurance does not cover paid passenger journeys. With everything in place, your application is submitted to the council for review before your licence is granted.
| Step | Purpose |
| Eligibility checks | Confirms you meet basic council requirements such as age, driving history and legal right to work in the UK. For right to work and residency, you will usually need documentation such as a passport, BRP or share code. |
| Licence type choice | Determines whether you can accept street-hail jobs, use taxi ranks, or only take pre-booked journeys through an operator. |
| DBS check | Ensures passenger safety by assessing criminal record history, particularly when transporting vulnerable individuals. |
| Medical assessment | Confirms you are medically fit to drive professionally and meet the required Group 2 health standards. |
| Knowledge & training | Assesses your understanding of local routes, road layouts, council policies and passenger safety responsibilities, including safeguarding training. |
| Vehicle & insurance | Ensures your vehicle meets licensing standards and that you are properly insured with taxi insurance to carry paying passengers. Taxi drivers can use their own vehicles if they wish, but it must be meet strict local licence, safety and insurance rules. |
| Council approval | Allows the council to review all checks, documents and test results before issuing your taxi licence. |
Before applying, it’s essential to understand the difference between these two main types of taxi licences in the UK.

Learning how to become a taxi driver is a clear process once you understand the requirements. Whether you choose public hire or private hire, the role offers flexibility, independence and the chance to work within your local community. With the right training, checks and insurance, you can start your journey toward becoming a licensed taxi driver in the UK, whether full-time or part-time.
At Collingwood, we make the process simple by offering flexible cover options for private hire drivers, whether you need annual protection or short-term flexibility. With affordable pricing, no hidden fees, and cover that includes both work and personal driving, we’re here to help keep you moving with confidence.
If you’re ready to get started, explore our taxi insurance options today and find the policy that’s right for you.
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