If you are considering setting up in business as either a taxi driver or a private hire vehicle driver then you may help you in knowing some of the differences between the two before you make your final decision as to which route you go down.

The main difference is that a private hire vehicle driver is only allowed to pick up people who have pre-booked a journey. He or she is not allowed to pick up passengers from a taxi rank or pull over when someone on the pavement attracts your attention to pick them up. A taxi driver is allowed to pick up passengers who have a pre-booked appointment, on a taxi rank or flag them down on the roadside.

It is worth noting that if a private hire vehicle driver were to pick someone up who had not pre-booked the journey then it is actually a criminal offence and it is quite possible that their vehicle insurance would be invalid. Obviously, it is not worth the risk for a private hire vehicle driver to break the law in this respect. It is also possible that, if found out, he or she could have their driver’s license revoked.

As a general rule, when it comes to earnings, a private hire vehicle driver has, on average, the potential to earn more than a taxi driver. One of the reasons for this is that a taxi driver has his or her fare charges limited by the council whereas a private hire vehicle driver does not have such a restriction and therefore has the scope to potentially earn more.

It is also possible that customers who use the driver of a private hire vehicle are likely to give a larger sum of money as a tip than to the driver of a taxi. Of course, this is not always the case and, on occasions, the reverse could apply.

Again, whilst not always the case, it is more likely that if you use the services of a private hire vehicle driver rather than a taxi driver, you will be picked up in an executive vehicle such as a BMW, Mercedes-Benz or Audi.

It is quite possible that the driver of a private hire vehicle may do more business miles in a year than the driver of a taxi as he or she is more likely to undertake longer journeys such as airport transfers involving longer distances from the passenger’s home to the airport.

Prior to making your decision as whether to set up as a private hire vehicle driver or a taxi driver do make sure that you undertake your due diligence as it is important that you make the right decision for yourself and your family.

If you do require a quote to insure your taxi or private hire vehicle why not get in touch and we will do all that we can to assist you in obtaining a competitive taxi insurance quote or private hire vehicle quotation.