PCO hire is one of the most convenient and straightforward ways for drivers to get a fully licensed private hire vehicle and start earning. It removes the need to spend thousands of pounds on buying a car upfront, and you can start driving and earning within a day.

With that said, many PCO drivers aren’t aware of their rights when signing a PCO car hire contract. They let the car providers dictate terms and end up paying hidden fees or surprise charges they didn’t know existed.

Let’s be honest, with rising fuel costs, expanding Ultra Low Emission Zone, and daily congestion charges, the last thing you want is to spend money over terms you don’t fully understand.

In this article, we will discuss your rights as a PCO driver in a car hire agreement so you can avoid costly traps and negotiate better deals.

Right to Clear and Transparent Contract Terms

You should be able to understand every clause in your contract. There should be no vague “around £250 a week” terms. Everything must be written clearly, and if there is any confusion, you should directly ask the car provider.

Remember that the written details in your contract will decide how much of your hard-earned money stays in your pocket, not what you are told by the car provider. So, know exactly what’s mentioned in the contract.

If the hire company makes you feel rushed or uncomfortable for wanting to go through the contract before signing it, consider this a red flag and walk away.

Right to Fair Use of the Vehicle

Private hire vehicles are meant for extended use, not to sit pretty in a garage. That’s why every honest PCO car hire contract comes with a ‘fair wear and tear’ clause. This means that you can’t be held responsible if your car gets tiny scuffs, scratches, and chips, as they are inevitable on busy roads.

However, not every car provider has the same wear and tear policy. What one company considers fair damage might be too much for another.

That’s why it’s important to know where you would stand in case of standard wear and tear that comes with daily driving. The last thing you want is to pay hundreds of pounds for scratches after a passenger accidentally knocked your door with their bags.

To make sure you don’t get falsely accused of damaging the car, inspect the car thoroughly before driving away. Take pictures of any existing damage and mark down every nick, chip, or blemish in writing to protect your income.

Right to Proper Insurance Cover

Driving a private hire car without insurance is illegal. If you are caught driving without hire-and-reward insurance, you could face serious fines and may even lose your licence. That’s why you should always make sure that you are getting proper insurance coverage before signing a PCO hire contract.

A proper insurance plan includes third-party liability, which pays for damage to someone else’s vehicle or property. It also provides passenger liability to protect you in case a passenger gets injured while you are driving. Lastly, it covers the damage to your own car.

This type of insurance is normally known as comprehensive insurance, and you should make sure that it’s included in your package before signing the contract. When asking about insurance, you should also confirm the excess. It’s the amount you will pay out of your own pocket for auto body repair, even if it wasn’t your fault.

The normal excess range is £500 to £1,000.

Right to Maintenance and Roadworthy Vehicles

Your car should meet all the legal and road safety standards. These standards are defined by TfL, and if your car isn’t TfL-compliant, then you can’t legally use it for private hire purposes. Here’s how you can confirm TfL compliance of a car:

First of all, make sure that the car has a valid MOT. An MOT check is conducted every six months to check the car’s roadworthiness. The check focuses on different components of the car, such as brakes, suspension, lights, steering system, and more. If a car doesn’t have a valid MOT certificate, it isn’t considered roadworthy.

Next, you should confirm that the car is properly serviced. Regular oil changes, brake inspections, and tyre checks prevent many problems on the road. Ask for the car’s servicing records and if you believe the car is unsafe, don’t drive it.

Right to End the Agreement According to Terms

PCO driving is an unpredictable job, and your circumstances can change at any time. That’s why you don’t need anyone’s permission to end your PCO car hire contract. Whether you are taking a temporary break from PCO driving or have found a better deal with low car insurance costs, you have the right to terminate the contract. However, it must be done according to the terms outlined in the contract.

For instance, some companies require early termination fees, while others want you to inform them a specific number of days before terminating the contract. If you refuse to pay the early termination fee, they might refuse to refund your security deposit. Similarly, if you insist on returning the car too soon, you might have to pay extra charges.

That’s why you should always check your car provider’s contract termination policy in advance to avoid any headaches.

Final Thoughts

PCO car hire is a legally binding contract that comes with many responsibilities. Before entering the agreement, make sure you know your rights to prevent the car provider from taking your power away. Knowing your rights helps you avoid unfair costs, protect your earnings, and handle disputes confidently.