To become a taxi driver in the UK, you need a driver licence from the council where you plan to work (or Transport for London if you work in London), a vehicle that is licensed for passenger work and Hire and Reward taxi insurance. Most licensing authorities will also ask you to hold a full driving licence for a minimum period, prove your right to work in the UK, pass an enhanced DBS check and a Group 2 medical, and complete local tests. Each authority sets its own fees and rules, so the exact process depends on where you are.

Here at XYZ Insurance, we have been insuring taxi drivers for more than 20 years, and we speak to first-time drivers every week. This guide walks you through the process in the right order, so you don’t end up paying for a vehicle or a policy that doesn’t match the licence you will hold.

Quick Summary: The Steps To Becoming A Taxi Driver

1. Decide whether you want to work as a Public Hire (hackney carriage) or Private Hire driver.
2. Check the entry requirements of the licensing authority where you will work.
3. Complete your enhanced DBS check, Group 2 medical and any local tests.
4. Apply for your driver licence, then arrange a licensed vehicle and, for Private Hire, a licensed operator.
5. Work out your full start-up budget.
6. Arrange Hire and Reward taxi insurance before you carry any paying passengers.
7. Complete your final compliance and tax checks before your first job.

The rules are also changing. The government has announced plans for national minimum standards for taxi and private hire licensing in England, so always check your council’s current requirements before you apply.

1. Choose Between Public Hire And Private Hire

Drivers licensed for Private Hire may only carry passengers who have pre-booked. The booking could come by telephone, email, through a taxi office or via an app, but a Private Hire driver cannot pick up passengers who hail them in the street.

Drivers licensed for Public Hire can do all of the above, but they can also accept passengers who have not pre-booked. They can be hailed in the street or wait for passengers at a taxi rank, such as outside a train station.

The choice affects more than how you find work. It can change the tests you need to pass, the vehicle specification, the signage and the type of taxi insurance you need. There are also other types of passenger work, such as Contract Hire (for example, school or hospital contracts), Chauffeur work and larger passenger vehicles. Vehicles with nine or more passenger seats used for Hire and Reward are generally treated as public service vehicles (PSVs) and have their own licensing rules. If that is the direction you want to go, have a look at our Chauffeur Insurance and Minibus Insurance pages.

2. Check Your Licensing Authority’s Entry Requirements

In England and Wales, taxi and private hire licences are issued by your local council, or by Transport for London (TfL) in London. Scotland and Northern Ireland follow different processes. GOV.UK’s taxi driver licence guidance is a good starting point. Your licensing authority decides the local tests, documents, medical process, vehicle standards, fees and renewal conditions.

Typical Eligibility Requirements

• A full driving licence held for a minimum period. In England and Wales, the legal minimum is 12 months, but many councils ask for longer. TfL, for example, asks Private Hire applicants to have held a full DVLA, Northern Ireland or other EEA licence for at least three years.
• The right to live and work in the UK. Keep your identity and status documents ready, with your name and address matching across all of them.
• Meeting the “fit and proper person” test. This is the authority’s assessment of your character and suitability, not just your driving record.
• Any minimum age rule. In London, Private Hire applicants must be at least 21.

Plan Your Application In The Right Order

Start by downloading your authority’s current driver and vehicle checklists. Then collect your identity and driving documents, book your medical and DBS check, and start studying for any local tests. Only once you understand the vehicle specification should you compare buying, financing or renting a car. A vehicle finance agreement becomes a fixed cost straight away, even if your licence is still waiting on a check.

It is worth keeping a simple tracker with the date you submitted each item, any reference numbers and the next action. Small things, like an old address on one document, can cause avoidable delays.

3. Complete Your DBS Check, Medical And Tests

Most licensing authorities require an enhanced DBS check and a medical assessment to DVLA Group 2 standards, which is the higher standard used for professional drivers. Make sure you book the medical through the route your authority asks for, rather than booking a standard medical by mistake.

A conviction does not always mean an automatic refusal, but leaving information off your application can cause a separate problem. Always be honest and complete. In London, all taxi and Private Hire applicants must register with and subscribe to the DBS Update Service, and licensed drivers must report new convictions and cautions within set time limits. Other councils have their own reporting rules.

Your council may also test you on local geography, road safety, safeguarding, disability awareness, licensing law and English. In London, Private Hire applicants complete a topographical skills assessment, an English language requirement and the Safety, Equality and Regulatory Understanding (SERU) assessment. London black cab drivers complete the Knowledge of London, which takes considerably longer.

4. Apply For Your Driver Licence, Then Sort Your Vehicle

There are usually three separate licences involved in passenger work, and it helps to understand the difference:

• Driver licence: allows you to drive licensed vehicles carrying paying passengers.
• Vehicle licence (plate): confirms that a specific vehicle meets the authority’s standards.
• Operator licence: needed by the business that takes Private Hire bookings. If you join an existing operator, you won’t need your own operator licence, but if you take Private Hire bookings directly, you will.

In England and Wales outside London, a Private Hire booking generally needs the operator, driver and vehicle to be licensed by the same authority, although operators can pass bookings to other licensed operators in some situations. This is one of the areas the government is currently reviewing, so check the latest position with your council.

Before buying or renting a car, check your authority’s rules on vehicle age, emissions, accessibility, seating, inspections, signage and approved models. Most councils will also ask to see a valid Hire and Reward insurance certificate before they license the vehicle.

5. Build A Realistic Start-Up Budget

There is no single cost to become a taxi driver in the UK. Each authority sets its own fees, and your total depends on whether you rent a licensed vehicle, buy your own or join an operator. Price your costs in separate groups:

• Driver licensing: application fee, DBS, medical, local tests and any training.
• Vehicle licensing: inspection, plate fee, signage and any required equipment.
• Vehicle: deposit, finance or rental payments, servicing, tyres, fuel or charging and cleaning.
• Insurance: your taxi policy, any Public Liability cover your council or contract needs, your policy excess and optional add-ons.
• Running costs: operator or app fees, phone, card payment fees, parking, clean air zone charges, accountancy and a reserve for quieter weeks.

A simple rule: get your council’s fee schedule first, then get a taxi insurance quote for the actual vehicle before you sign a finance or rental agreement.

6. Arrange Taxi Insurance Before You Carry Paying Passengers

If you carry passengers for a fee, you will need Hire and Reward insurance. Standard car insurance, which covers social, domestic and pleasure use and commuting, does not cover paid passenger journeys. The exact policy you need depends on the licence you hold and the requirements of your licensing authority. If you are unsure what this means, our guide to Hire and Reward insurance explains it in plain English.

What To Check In A Taxi Insurance Quote

• Licence type: make sure the policy matches your licence, whether that’s Public Hire, Private Hire, Contract Hire or PSV.
• Level of cover: Comprehensive, Third Party, Fire and Theft, or Third Party Only.
• Personal use: many taxi policies include your own personal use, but tell us if you need it so we can include it.
• Your details: declare all convictions, claims, drivers and any vehicle modifications accurately. Incorrect details can affect a claim.
• Excess: how much you would pay towards a claim.
• Getting back on the road: a replacement plated vehicle after a claim can make a big difference when your taxi is your livelihood.

How XYZ Insurance Can Help New Taxi Drivers

We search our panel of taxi insurers to find a policy that suits you, with specialist schemes for first-time taxi drivers, under 25-year-old taxi drivers, experienced drivers, convicted drivers and reformed accident-prone drivers, as well as Public Hire, Private Hire and taxi fleet cover. Our panel includes insurers that can offer replacement plated vehicles following a non-fault claim, and we can add optional cover such as a fault replacement vehicle, breakdown cover, Public Liability, excess protection and key care.

You can spread the cost with a deposit and three instalments, four instalments or nine monthly instalments, or pay in full. Find out more on our Taxi Insurance page or get an online quote.

7. Complete Your Final Checks Before Your First Job

Before you accept your first booking, check that your driver licence is active, your vehicle plate and inspection are in date, your operator arrangement is in place if you drive Private Hire, and your insurance schedule shows the right use. Keep copies of everything and put all renewal dates in one calendar.

Most taxi drivers are self-employed, so you will need to register for Self Assessment with HMRC. You don’t need a tax check for your very first licence, but your authority will ask you to confirm you have read HMRC’s guidance. You will need to complete a tax check when you renew your licence, or if you apply for the same type of licence with another authority after holding one before. Tax check codes are valid for 120 days.

Common First-Time Mistakes To Avoid

• Applying to the wrong licensing authority.
• Buying a vehicle before checking its age, emissions and inspection requirements.
• Using standard car insurance or a delivery-only policy for passenger work.
• Starting a vehicle finance agreement before your DBS, medical and tests are done.
• Not telling your insurer and licensing authority about a change of vehicle, address or driver.
• Choosing a policy on price alone without comparing the excess, exclusions and what happens after a claim.

Taxi Driver Readiness Checklist

• Licensing authority chosen and current guidance saved.
• Driving licence, right to work and identity documents ready.
• Enhanced DBS, Group 2 medical and local tests completed.
• Driver licence granted and renewal date recorded.
• Vehicle licensed and operator arrangement confirmed.
• Hire and Reward insurance in place for your licence type.
• Registered for Self Assessment with HMRC.

Frequently Asked Questions

How Long Does It Take To Become A Taxi Driver?

There is no standard timescale. It depends on DBS and medical appointment availability, your local tests and your authority’s processing times. A Private Hire licence is usually much quicker to get than a London black cab licence, which requires the Knowledge of London. Ask your authority for its current processing estimate.

Can I Use My Own Car As A Private Hire Vehicle?

Often yes, as long as it meets your council’s vehicle rules, passes the inspection and is licensed as a Private Hire vehicle. Check this before you buy, and get a taxi insurance quote using the actual vehicle details.

Can I Get Taxi Insurance As A New Taxi Driver?

Yes. We offer schemes for first-time taxi drivers and under 25-year-old taxi drivers. Prices depend on your age, driving history, vehicle and where you work.

Does My Normal Car Insurance Cover Me For Taxi Work?

No. Standard car insurance doesn’t cover carrying passengers for payment. You will need Hire and Reward taxi insurance that matches your licence.

Do I Need Public Liability Insurance As A Taxi Driver?

Some councils and contracts ask for it. Public Liability protects you if a member of the public makes a claim for injury or property damage while you are working, for example if a passenger trips getting in or out of your vehicle. We can add it to your policy if you need it.

Ready To Get On The Road?

The easiest route into the trade is to work backwards from your licensing authority’s rules: choose your licence type, check the driver and vehicle requirements, work out your full budget and then arrange insurance. That way you avoid paying for the wrong vehicle or finding out your policy doesn’t cover passenger work.

When you’re ready, get an online quote or call our UK-based team on 01268 916916 (Monday to Friday, 9:00am to 5:30pm). Already a customer? You can update your details through our Change Of Vehicle and Change Of Address pages, or report an incident through Make A Claim.