Most expensive cities for taxi drivers in the UK
Some of the most expensive UK cities for taxi drivers include London, Wakefield, Coventry, Edinburgh, and Manchester. This is because startup costs, fuel prices and taxi insurance are more costly in these areas. However, taxi drivers in Coventry, Leeds, and Oxford charge the highest fares.
We’ll explore all of the details in SimplyQuote’s latest guide, breaking down the costs for each region and providing a few money-savvy tips so you can keep running costs to a minimum.
12 Most expensive UK cities for taxi drivers
Starting up as a UK cabbie is the most expensive in these 12 locations:
- London
- Wakefield
- Bradford
- Coventry
- Edinburgh
- Nottingham
- Luton
- Southampton
- Manchester
- Wigan
- Derby
- Leeds
Let’s take a closer look:
| City | Startup Cost (£) | Average Petrol Price (£) | Average Taxi Insurance (£) | Licensing Fee (£) |
|---|---|---|---|---|
| London | £1,856.79 | £1.46 | £1,542.24 | £310 |
| Wakefield | £1,828 | £1.30 | £1,148 | £642 |
| Bradford | £1,714.55 | £1.46 | £1,471.05 | £199 (3 years) |
| Coventry | £1,711.10 | £1.43 | £1,078.16 | £2,000 |
| Edinburgh | £1,679.19 | £1.45 | £923.19 | £786 (1 year) |
| Nottingham | £1,675.82 | £1.42 | £1,045.82 | £260 (3 years) |
| Luton | £1,674.40 | £1.65 | £1,202.40 | £276 |
| Southampton | £1,584.73 | £1.50 | £994.73 | £180 (1 year) |
| Manchester | £1,573.55 | £1.40 | £1,268.55 | £255 (3 years) |
| Wigan | £1,536.30 | £1.29 | £1,064 | £379 (3 years) |
| Derby | £1,530.65 | £1.48 | £1,098.65 | £361 (3 years) |
| Leeds | £1,523.78 | £1.43 | £1,063.78 | £150 (1 year) |
Petrol prices updated September 2024.
London tops our list as the most expensive UK city for taxi drivers in terms of startup costs and taxi insurance. Wakefield and Bradford come in second and third respectively, while Leeds is the 12th most expensive city.
To add to these costs, a taxi driver also needs to consider DBS certificate fees:
- Basic DBS Check: £18
- Standard DBS Check: £18
- Enhanced DBS Check: £38
- Enhanced with Barred Lists DBS Check: £38
While this section highlights the regions with the most expensive startup and running costs, there are slight differences in taxi fares for each.
Looking for cheap taxi insurance? Get your quote today!
Get Quotes10 Most expensive UK cities based on taxi fares
The most expensive UK cities based on taxi fares are as follows:
| City | Cost per Mile (£) |
|---|---|
| Coventry | £3.11 |
| Leeds | £3.06 |
| Oxford | £3.04 |
| Cambridge | £3.03 |
| London | £2.99 |
| Bristol | £2.90 |
| Southampton | £2.89 |
| Manchester | £2.82 |
| Birmingham | £2.81 |
| Stoke-on-Trent | £2.72 |
As per TaxiPlus data.
Coventry, Leeds, and Oxford charge the highest taxi fares, while Manchester, Birmingham, and Stoke-on-Trent are among the cheapest.
How to save money as a UK taxi driver
Here are a few ways you can reduce costs in your taxi business to compensate for high startup, fuel, and taxi insurance costs.
Compare the cost of taxi insurance
It’s good practice to compare prices to find the cheapest taxi insurance aligned with your business operations and budget. Taxi insurance is a broad term that covers private hire and hackney carriage vehicles.
Private hire vehicles need private hire insurance (also known as PCO or minicab insurance), as they carry pre-booked passengers. Hackney carriages, or black cabs, need public hire insurance because they transport passengers without prior bookings. Standard motor insurance does not cover you for hire and reward purposes.
Scrutinising your policy ensures you only pay for the level of cover and optional extras you need.
To simplify this process, use SimplyQuote’s free online comparison tool to scour the insurance market and compare quotes from multiple UK insurers in just a few clicks.
Your annual taxi insurance cost is one of your biggest and most important expenses. It ensures you, your passengers, and your vehicle/s are protected in the event of an accident, saving you from having to pay legal or compensation claims out of your own pocket.
Bonus reads:
Consider telematics
A telematics insurance policy is a superb investment for any taxi driver. These black box devices monitor how, where, and when you drive and send the collected data to your chosen insurance provider so they can calculate your premiums.
This means that safer drivers generally have cheaper taxi insurance.
Bonus read: How To Be A Good Taxi Driver In The UK
Practise fuel-efficient driving
Practising fuel-efficient habits like smooth acceleration and gradual braking can significantly reduce the fuel you consume when driving. This will certainly reduce your fuel bills in the long run.
Keep taxi vehicles secure
Keeping taxis and private hire vehicles safe is a surefire way to keep expenses low for two reasons:
- Keeping your vehicles securely parked in private driveways or garages deters criminal activity such as vandalism, burglary, and theft.
- It potentially reduces the cost of taxi insurance and keeps unnecessary repair costs to a minimum, as insurers can see you have tried to protect your vehicles.
Bonus read: How To Protect Your Taxi Firm In The UK
Understand tax deductions
Knowing what expenses taxi drivers can claim will significantly improve your bottom line and reduce your overall tax bill. Here are a few things you can claim for:
- Fuel
- Vehicle repairs
- Licence fees
- Taxi insurance
- Mileage
- Toll fees
Final thoughts
London, Wakefield, and Edinburgh are some of the most expensive cities in the UK for taxi drivers because it costs more to start a taxi business and get taxi insurance there.
Luckily, taxi drivers can make up for these higher costs by comparing different insurance options, driving in a way that saves fuel, and knowing what expenses they can claim.
Remember to use SimplyQuote’s 100% free online comparison tool to compare quotes from multiple UK insurers. Find the best deal for your taxi business and budget in just a few clicks.
Frequently Asked Questions
Yes, taxi driving is profitable and can bring in an annual income of between £20,000 and £52,000. You might be interested in: How Profitable Is A Taxi Business In The UK.
Yes, being a self-employed cabbie is a good career, as you work for yourself, set your own fares, and have the potential to set your own working schedule. You might be interested in: Is It Worth Being A Taxi Driver In The UK?
Five of the cheapest places for taxi drivers in the UK are as follows:
- Inverness
- Hereford
- Aberdeen
- Ipswich
- Kingston upon Hull