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Taxi rental agreement template (vehicle hire to drivers)

A taxi rental agreement sets the terms when a fleet hires a licensed vehicle to a driver: weekly rent and deposit, what the rent includes (licence, insurance, maintenance), mileage and usage limits, damage and fines, inspections and how the hire ends. The outline below lists the clauses; have a solicitor finalise it.

Last updated 1 official sourceTaxiDex team

The outline

Use it as a checklist with your solicitor.

Taxi / PHV rental agreement: outline of clauses
1. PARTIES, VEHICLE AND TERM
Owner: [ ]  Hirer (driver): [ ], licence no. [ ] issued by [authority]
Vehicle: [make, model, registration, vehicle licence/plate no., expiry]
Start date: [ ]  Minimum term / notice: [ ]

2. RENT AND DEPOSIT
Weekly rent [amount], due [day], payment method; deposit [amount], refund conditions and timing.

3. WHAT THE RENT INCLUDES
[Hire and reward insurance] [vehicle licence fees] [servicing] [tyres] [MOT/inspections] [roadside assistance]

4. USE OF THE VEHICLE
Only the named licensed hirer drives; permitted area; mileage allowance and excess charge; no subletting.

5. INSURANCE AND ACCIDENTS
Policy details, excess payable by hirer, reporting within [x] hours, replacement vehicle terms.

6. MAINTENANCE AND INSPECTIONS
Daily checks by hirer; owner servicing schedule; licensing inspections; reporting faults.

7. DAMAGE, FINES AND CHARGES
Damage assessment; parking and traffic fines; congestion/clean-air charges; cleaning.

8. LICENSING
Hirer keeps their driver licence valid and reports changes; owner keeps the vehicle licence valid.

9. ENDING THE HIRE
Notice; return condition; inspection on return; deposit settlement.

SIGNATURES AND DATE

What should the rent include?

Say exactly. Drivers compare weekly rents, so list whether insurance, the vehicle licence, servicing, tyres and breakdown cover are inside the rent or extra, and what the insurance excess is.

Frequently asked questions

Can a fleet rent cars to private hire drivers licensed by another council?

In England and Wales the vehicle must be licensed by the same authority as the driver (and the operator dispatching them), so match the vehicle's licence to the driver's authority.

Is this agreement legal advice?

No. It is an outline to take to a solicitor who knows vehicle hire and consumer law where you operate.

Sources

Fees and rules change. Each source is the official page we read, with the date we read it; check it before you apply or pay.

  1. [1] GOV.UK: Driver licences for taxis and private hire vehicles (read 2 Nov 2026)

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