Cost of Becoming a Taxi Driver

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Written by Michael Foote , founder of Quote Goat, with over 13 years experience working in the finance, insurance and currency sectors.

So, you’re considering becoming a taxi driver, but you’re slightly concerned about how much it’ll cost to get yourself on the road. Well, the bad news is, with licence fees, tests and taxi insurance, it’s probably not going to be cheap. It can cost a considerable amount of money if you want to do everything above board – which you should!

The good news is there may be ways to save money if you know how. Here we give you an idea of what to expect cost-wise when you’re setting up as a taxi driver, as well as a few hints and tips on how you can save a few quid in the process.

How much does a taxi cost?

Firstly, if you want to work out what your taxi is going to cost then you need to decide which type of vehicle you wish to drive as this will impact the overall cost significantly. For example, if you’re looking to become a private hire driver then you could use the vehicle you already own, or you may prefer to rent a car from the taxi company you’ll be working for, which could come at a reasonable cost.

On the other hand, if you’re thinking of driving a black cab in a large city such as London then you’ll need a Hackney carriage and picking up one of these vehicles can set you back quite a few thousand, although the exact cost will obviously depend on the condition and age of the vehicle.

How much is a taxi licence?

As you’ll be transporting members of the public, it’s important that your capabilities are assessed to ensure you’re a suitable candidate for what the job entails. This means you’ll be required to undergo a number of simple tests such as a medical examination, a criminal records check (CRB) and a route-finding exam. Furthermore, your vehicle will also be put through its paces to ensure it’s safe and up to the job, and there may be directives and regulations that need to be adhered to depending on which city you’ll be operating in.

These tests should cost no more than a few hundred pounds, and while the initial outlay might seem like a hefty chunk, this is a legal requirement and is therefore imperative if you want to get on the road.

How much will taxi insurance cost?

Once again, the amount you’ll pay for your insurance will depend on a range of factors. These include your location, the type of vehicle you’ll drive and the hours you’ll be working, so your overall premiums could vary massively depending on your circumstances.

If you have a good driving record with a few years no claim discount, then your premiums should be much less. You can also reduce your insurance premium by installing a black box, although that idea is not to everyone’s liking.

There are a range of options and add-ons you should consider, so for some of the best deals on the market be sure to compare taxi insurance with Quote Goat and see how much you could save.


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