KNOW THE RISK: Passengers face massive safety and insurance risks when using unlicensed taxis or private hire vehicles
- Perry Richardson
- Jul 12
- 2 min read
Updated: Jul 14
Passengers using unlicensed taxis or private hire vehicles are exposing themselves to significant insurance risks and safety concerns, with little to no legal protection in the event of an incident.
Vehicles operating without a proper taxi or private hire licence often lack the insurance cover required to carry paying passengers. If an accident occurs, the passenger is unlikely to be covered for injuries, loss or damages, meaning any compensation or legal support is severely limited.
These vehicles are also not subject to regular safety checks required by licensing authorities. This can lead to dangerous mechanical faults going unnoticed. Drivers operating illegally are not required to complete enhanced background checks, including DBS clearance, raising additional concerns over passenger welfare.
Passengers are advised to check that the vehicle they are entering is properly licensed. Taxis should clearly display a roof sign and taxi plate, while private hire vehicles must be pre-booked and show external licence plates and operator information. Drivers should always carry a valid licence badge issued by the local authority.
Picking up passengers without a booking, known as ‘plying for hire’, is a criminal offence for private hire drivers. If caught, drivers can face fines of up to £2,500, up to eight penalty points, and the loss of their driving and operator licences. Courts across the UK have issued heavy penalties, with some cases resulting in thousands of pounds in fines, long driving bans and revoked licences.
Operating without a valid insurance policy is a separate offence, often triggered by illegal hire work. Drivers can receive unlimited fines, driving disqualifications and criminal records. For passengers, this means any injury sustained during the journey is unlikely to be covered, regardless of fault.
Licensing authorities have powers to suspend or revoke licences for drivers found to be acting outside of the law. Accumulated penalty points or convictions can result in immediate removal from the taxi and private hire register, regardless of employment status or time in the trade.
To stay protected, passengers should only travel in properly licensed vehicles and avoid entering any car offering rides without a booking confirmation or visible taxi credentials.
