Who can legally drive a private hire vehicle?
Updated: Dec 20, 2024
Driving a licensed private hire vehicle (PHV) is a privilege reserved for those who meet stringent legal requirements. While it might seem straightforward to use such a vehicle for personal or business purposes, strict rules govern who can and cannot drive it. These rules are in place to ensure the safety of passengers and compliance with insurance regulations.
To legally operate a licensed PHV for hire and reward, the driver must hold a valid private hire driver’s licence. This licence is issued by the local authority responsible for the area in which the vehicle operates or, in London, by Transport for London (TfL).
Another crucial aspect of driving a PHV is insurance. The vehicle must be insured for “hire and reward” use, a specific type of cover designed for vehicles carrying paying passengers. Standard car insurance does not extend to private hire activities, and driving without proper insurance is not only illegal but could lead to severe penalties.
Some may wonder whether they can drive a licensed PHV for personal use when it is not in service. For most parts of England and Wales, the driver of a PHV can drive it privately, but only if they hold a valid private hire driver’s licence and have insurance that covers both personal and hire and reward use.
Family and friends therefore face restrictions, unless they too hold a PHV licence, as part of the Search Local Government (Miscellaneous Provisions) Act 1976.
However, in London that rule is different to the rest of the country due to the Private Hire Vehicles (London) Act 1998. This allows for different insurance permissions for a PHV drivers licensed by Transport for London. PHV drivers should talk with their insurer to discuss how they may be able to add friends or family to their policy for private personal use only.
