PCO Car Hire in London: How do Companies Handle MOT, Insurance, and Road Tax
Private hire drivers in London have to meet TfL’s strict licensing requirements to drive for Uber, Bolt, and Freenow. The regular vehicle inspections and insurance costs further add to the pressure.
As a result, many drivers turn to PCO car hire in London to avoid the stress. PCO fleet operators handle MOTs, insurance, road tax, and much more for a fixed weekly fee. You just hire a car and pay the fee. There’s no need to worry about paperwork since your car provider manages it for you.
In this article, we will explain how they do it.
Article Highlights
This article discusses how PCO hire companies handle:
- MOTs
- Insurance
- Road Tax
Kia eNiro
£200/week
Kia Niro 2
£255/week
Mercedes Benz EQE
£400/week
Mercedes E300 2025
£425/week
Mercedes-Benz E300e
£320/week
Toyota Prius
£200/week
How Do PCO Hire Companies Manage Insurance?
PCO insurance or hire and reward insurance is different from regular car insurance. It covers you for carrying paying passengers in your car. After a PCO driver’s licence, PCO insurance is the most important thing you need to drive legally in London.
PCO car rental for Uber drivers bundles hire and reward insurance into the package. This allows you to pick up passengers without arranging the insurance yourself.
What’s Included
Having PCO insurance in your package helps you avoid the annual premium. A premium is the amount you pay annually for buying an insurance plan. It can cost thousands of pounds, but the rental company handles all of that for a fixed fee.
Coverage Types
There are three types of hire and reward insurance: Third Party Only (TPO), Third Party Fire and Theft (TPFT), and Comprehensive Insurance.
TPO only covers damages to the third party, TPFT covers fire and theft as well, while comprehensive insurance covers everything covered by the first two types. Plus, it covers damages to your own car in an at-fault accident as well.
Excess
Excess is the amount you pay out of pocket before your insurance covers the repair costs. It can range from £500 to £1,500, or sometimes more. The excess depends on the rental company and your agreement. Some companies offer lower excess for long-term drivers. Others have a flat excess for everyone. Clarify this before you sign a contract.
Want an insured car for PCO use? Our fleet includes insured saloons, SUVs, 7-seaters, and 9-seaters for private hire drivers. Pick a car that suits your preference. Contact us today!
How do PCO Hire Companies Manage MOTs?
MOT is a biannual vehicle inspection that happens at TfL-approved centres. The goal of an MOT test is to confirm that the vehicle meets TfL’s safety standards. PCO car hire in London covers MOTs as well, which means another burden is lifted off your shoulders.
Frequency
PCO vehicles in London that are over one year old need to pass an MOT check every six months. These cars cover much higher mileage than regular cars. So, they endure more wear and tear. This six-month cycle means your car needs to be regularly maintained to pass the test. When you hire a car, the fleet operator is responsible for booking the MOT and making sure the car passes it.
Also Read: PCO Vehicle Inspection Checklist: What You Need to Know
Responsibility
PCO car hire companies are responsible for MOT scheduling and payment. They are the registered keeper of the vehicle, which makes them obligated to keep it TfL-compliant. You do not have to book the appointment or worry about the cost. The rental company tracks the MOT schedule for their entire fleet. However, the cost of the MOT is included in your hire fee.
Maintenance
Most PCO hire companies offer full maintenance. This means tyres, brakes, oil changes, and servicing are all covered in your hire payments. This is valuable for high-mileage drivers because tyres don’t last long when you drive your car 50 or 60 hours per week. Brake pads wear faster, and suspension components wear down as well. All these costs would come from your pocket if you owned the car. With PCO hire, your car provider manages maintenance, and you just drive the car.
Replacement Car
Ever wonder what happens when your rental car needs maintenance or goes in for an MOT? Do you lose those days of earnings? Reputable hire companies provide a replacement vehicle to minimise your downtime during servicing or MOTs.
When signing the contract, ask the company whether they will give you a replacement for an MOT? What happens if all your replacement vehicles are already in use? Some companies have a large enough fleet to provide a replacement. Others run on tighter margins and might leave you waiting.
How do PCO Hire Companies Manage Road Tax (Vehicle Excise Duty)?
Every vehicle in the UK needs to pay road tax to be considered road legal. EVs used to be exempt from road tax, but that exemption no longer applies. PCO hire companies manage road tax as well, included in your fee.
Management
Because the rental company owns the car, they handle all road tax administration. They pay the annual VED charge and also deal with any DVLA correspondence. You do not need to set reminders for the tax due date, and you don’t need to deal with the administration yourself.
Inclusion
Road tax is included in your weekly rental price, just like the insurance and maintenance. You do not pay extra for road tax. The rental company calculates their rate based on the total cost of renting out the vehicle. VED is part of that calculation.
Also Read: 2025 EV Road Tax Changes: A Complete Guide for PCO Drivers
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Conclusion
When you hire a PCO car, the fleet operator handles MOT, insurance, road tax, and anything related to compliance. They are the registered keeper of the vehicle, so they handle all the paperwork. Before choosing PCO car hire in London, get everything in writing. Know your liabilities and the company’s coverage, and talk to other drivers about their experiences. Doing your homework lets you choose a reputable company and drive with peace of mind.
Frequently Asked Questions
Do I need to pay road tax on a hired PCO car?
You don’t need to pay road tax on a hired PCO car. The car provider manages it for a fee included in your weekly payments.
Do I need separate insurance when hiring a PCO car?
No. Your car provider handles insurance as well, just like road tax. You don’t need separate insurance when hiring a PCO car.
Which is the best type of private hire car insurance?
Comprehensive insurance is the best type of private hire car insurance, since it covers both you and third-party damages.
What is private hire car insurance?
Private hire car insurance protects you for carrying paying passengers. It’s different from regular car insurance, where you get no such protection.
What is excess in insurance?
Excess is the amount you pay out of pocket before your insurance coverage begins. For instance, if the excess is £500 and the insurance costs are £2,000, then the insurance company provides £1,500, and you pay the remaining £500.
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