Credit Hire Services for Taxi Drivers – What You Need to Know

Taxi drivers spend countless hours on the road every week, relying on their vehicles as their primary source of income. When an accident happens, whether it’s your fault or not, your taxi can be off the road for days or even weeks. For a taxi driver, this downtime can cause serious financial stress. That’s where credit hire services come in — a lifeline for drivers who need to keep earning while their taxi is being repaired or replaced.

In this guide, we’ll break down exactly what credit hire is, how it works, what taxi drivers should watch out for, and how to get the most from a credit hire claim. Whether you drive a black cab, a private hire vehicle, or an executive car, understanding credit hire can save you time, money, and headaches.

What Is Credit Hire?

Credit hire is a service that provides you with a replacement vehicle when your car is damaged in an accident that was not your fault. Instead of waiting for the at-fault driver’s insurance company to pay for a courtesy car — which can take days or be limited to standard vehicles — credit hire companies deliver a suitable replacement vehicle immediately, on credit.

The cost of hiring the replacement is then recovered directly from the at-fault driver’s insurance. This means you don’t have to pay upfront and you can keep working while your taxi is repaired or a payout is negotiated.

How Does Credit Hire Work for Taxi Drivers?

Taxi drivers have unique needs compared to regular drivers. If you’re involved in a non-fault accident, your priority is to get back on the road quickly in a vehicle that meets taxi licensing standards. Here’s how the process usually works:

• • Accident Happens: You’re involved in a non-fault collision.
  • Contact a Credit Hire Company: You get in touch with a reputable credit hire firm that specialises in taxis.
  • Replacement Vehicle Arranged: The company delivers a plated, insured, licensed taxi to your doorstep. The replacement will match your original vehicle type — for example, if you drove an 8-seater, you’ll get another 8-seater.
  • Your Vehicle Gets Repaired: While you’re working in the replacement taxi, your own vehicle is repaired or assessed for total loss.
  • Claim Settled: The credit hire company recovers the hire costs directly from the at-fault driver’s insurance company.
  • Return the Hire Car: Once your own taxi is back in service or you’ve received a payout, you return the hire vehicle.

Why Is Credit Hire Important for Taxi Drivers?

Without a working vehicle, a taxi driver’s income stops immediately. Insurance companies often provide courtesy cars, but they’re usually small, unplated vehicles unsuitable for taxi work. This leaves drivers unable to earn. A credit hire taxi is fully plated, insured for hire and reward, and meets local council licensing requirements.

Key benefits include:

• • No upfront costs: You don’t pay for the hire car out of your own pocket.
  • Plated taxi replacement: You get a licensed taxi, not just a standard courtesy car.
  • Income protection: You stay on the road and keep earning.
  • No hassle: The credit hire company deals directly with the other party’s insurer.

Who Pays for Credit Hire?

In a non-fault claim, the cost of the credit hire vehicle is recovered from the at-fault party’s insurance company. However, it’s important to be honest and reasonable: the replacement vehicle must be similar to your own, and you must act in a way that minimises costs.

If you refuse to return the hire car once your own taxi is ready, you could become personally liable for extra hire charges. So, always communicate with the hire company and your repair garage.

What Vehicles Can You Get on Credit Hire?

Good credit hire companies have a fleet tailored for taxi drivers, including:

• • Standard saloon taxis
  • MPVs (6, 7, 8-seaters)
  • Wheelchair-accessible vehicles
  • Executive hire cars for private hire or chauffeur services

All replacement vehicles must be plated and meet your local licensing authority’s rules. This means you can legally pick up passengers, use your operator’s base, and stay compliant with council regulations.

How Long Can You Keep a Credit Hire Taxi?

Generally, you can keep the replacement taxi until:

• • Your own vehicle is fully repaired and returned, or
  • You receive a payout if your taxi is written off.

However, you must not cause unnecessary delays. If the insurer proves you’ve delayed repairs or refused a fair settlement, they could argue that the extra hire costs are unreasonable. So always act promptly and cooperate with your repairer, insurer, and hire company.

Is Credit Hire Legal and Safe?

Yes — credit hire is fully legal and widely used in the UK. However, it can become complicated if it’s misused. Courts expect claimants to act reasonably. So, you must genuinely need the hire car and keep costs proportionate.

Key tips to stay safe:

• • Use a reputable firm: Pick a credit hire company that specialises in taxi claims and has good reviews.
  • Read the paperwork: Make sure you understand the hire agreement and your responsibilities.
  • Be honest: Don’t exaggerate losses or hire a bigger car than you need.
  • Keep records: Keep all documents, repair updates, and communications in case the insurer challenges the claim.

Do You Need a Solicitor for Credit Hire?

Many taxi drivers use an accident management company that arranges the credit hire vehicle, repairs, and legal help in one package. You don’t need a solicitor, but if the at-fault insurer refuses to pay, the hire company’s legal team may take the claim to court. In these cases, you may be asked to give evidence that you genuinely needed the taxi and used it for work.

Common Pitfalls to Avoid

While credit hire is a lifeline, there are some pitfalls taxi drivers should watch out for:

• • ❌ Overclaiming: Don’t ask for a larger, more expensive vehicle than you normally drive.
  • ❌ Unnecessary delays: Stay in touch with your repairer. If you delay collecting your repaired taxi, you could be charged for extra hire days.
  • ❌ Using an unlicensed replacement: If the replacement vehicle isn’t properly plated, you can’t legally work — and the insurer might refuse to pay.
  • ❌ Uninsured use: Make sure the hire car includes full insurance for hire and reward. Standard private insurance won’t cover taxi use.

How to Choose a Good Credit Hire Company

Not all credit hire companies are equal. When choosing one, look for:

• • Taxi specialists: Do they supply licensed plated taxis in your area?
  • Fast delivery: Can they deliver a replacement taxi within 24 hours?
  • Insurance included: Does the hire car come with full hire and reward insurance?
  • Good reviews: Are they recommended by other taxi drivers?
  • Legal support: Will they handle disputes with the at-fault insurer if needed?

What If the Other Driver’s Insurance Refuses to Pay?

In rare cases, the at-fault driver’s insurer might argue that your hire costs are too high or the hire period was too long. If this happens, your credit hire company will usually take the matter to court on your behalf. You might be asked for evidence of your income and why you needed the replacement taxi for that period. As long as you’ve acted reasonably, the courts often side with the taxi driver.

Alternatives to Credit Hire

If you don’t want to use credit hire, you could:

• • Use your own insurance: Some taxi insurance policies include a plated courtesy car, but not all do.
  • Hire privately: You could pay for a replacement taxi yourself and claim back the costs later. But this means paying upfront.
  • Loss of earnings claim: If you don’t hire a replacement, you could claim for loss of income instead — but proving lost earnings can be complicated.

Credit hire is often the simplest, safest option for taxi drivers who need to keep working.

Final Thoughts

For taxi drivers, your vehicle is your livelihood. Accidents happen — but they shouldn’t stop your income. Credit hire services bridge the gap between an accident and getting your taxi back on the road, without the stress of paying upfront.

The key is to understand how credit hire works, use a reputable company, and always act honestly and reasonably. By doing so, you protect your income, stay on the road, and let the professionals handle the paperwork and insurance arguments for you.

Next time you’re involved in a non-fault accident, remember: you don’t have to sit at home waiting for repairs. With the right credit hire service, you can keep earning and stay in control.