When signing a PCO car hire contract, it’s important to know what to look for. The stakes are high in the PCO world, and every clause in your contract could impact your ability to earn.
The truth is, most drivers don’t realise what they are getting into until they face issues that could have been easily avoided. If you are not careful when signing the contract, you could end up being one of those drivers as well.
To make sure this doesn’t happen to you, we have discussed the do’s and don’ts of PCO car hire contracts in this article. Keep reading to learn more.
Table of contents
Things to Remember When Signing a PCO Car Hire Contract
Do: Read the Entire Contract
The first thing you need to do is read the entire contract. Skimming it or flipping through it is not an option. You have to sit down with zero distractions and read every single line of the contract.
It’s true that contracts are boring. They contain fine print, bold terms, and technical wording. However, this piece of paper could determine whether you will drive with peace of mind or have a stressful journey ahead.
If you don’t pay attention, you could end up paying extra costs that you didn’t plan or breaching terms that you didn’t know were part of the contract.
When you breach terms, you pay penalties.
Don’t: Assume Everything is Covered
Not all PCO car hire contracts are the same. Some cover all the essentials while others don’t. Therefore, you should never assume everything is covered when signing a contract.
Let us explain: some contracts offer PCO vehicles but they don’t offer any support when things go wrong. Many drivers sign such contracts, thinking they are getting an affordable deal. But then the car breaks down and they are left stranded in the middle of nowhere.
Guess who’ll be paying the repair bill in this situation? You!
So, ask for a detailed breakdown of what’s included in your plan. If you get vague answers instead of specifics, consider other options.
Do: Ask About Mileage Limits
Some Uber car hire companies offer unlimited mileage, while some put caps on how much you can drive per week. The caps usually range from 800 to 1500 miles per week. If you exceed the given limit, you will be charged an extra fee per mile.
The fee is normally 30p to 40p per mile. This may not seem much at first but over time, the costs can pile up.
That’s why it’s important to choose a plan that works for you.
If you are a full-time driver who does airport runs and long trips for higher fares, then a plan with unlimited mileage will be ideal for you. However, if you are only doing it part-time, then a capped mileage plan might work for you.
Don’t: Overlook the Insurance Policy
Insurance for PCO rental cars comes in many forms. Therefore, it’s not enough to just have an insurance policy in your plan.
You should know what types of insurance you are getting: third-party insurance, third-party fire and theft insurance, or comprehensive insurance.
Third-party insurance only covers the other person in case of an accident, not you or your car.
Third-party fire and theft insurance is slightly better but it still won’t cover you if you are involved in an accident and receive personal injuries or damage to the car.
Only fully comprehensive insurance covers you and your vehicle, even if you are the one at fault.
While checking the insurance type, don’t forget the excess.
Excess is the amount you have to pay out of your own pocket in case something goes wrong. Make sure it’s manageable as well because an excess of £1,000 or £2,000 isn’t affordable for many PCO drivers.
Do: Clarify the Maintenance and Repairs Policy
When choosing a PCO hire company, you have two choices: pick a company that takes care of MOTs, oil changes, filters, car body repair, etc. or choose a company that leaves everything on you.
If you end up choosing the second one, you will be responsible for garage appointments, paying out of your own pocket, and losing working hours every time the car needs attention.
That’s why it’s important to clarify the maintenance and repairs policy before signing the contract. You can ask questions like:
- Who is responsible for routine servicing?
- Is there roadside assistance in case of a breakdown?
- Will I get a replacement vehicle if my car is out for long repairs?
If you don’t get clear answers, walk away.
Don’t: Ignore the Penalty Clauses
Most PCO drivers ignore the penalty clauses when signing contracts. However, this is a big mistake because one small incident can wipe out your whole week’s earnings if you are not careful.
Here’s what you need to know:
Some companies will charge a full-day fee if you return the car late. Hand it back with a few crumbs on the seat or a coffee stain on the mat and they will be asking you to pay for a deep cleaning fee.
Now, if your car gets a scratch, dent, or even a slight mark, it could be considered as damage and you will be asked to pay the body shop price.
The worst part is that you unknowingly agreed to all this when signing the contract, so you can’t contest these penalties.
You can avoid all this by knowing the truth upfront.
Do: Check the Vehicle Condition Before Signing
When hiring a car, the last thing you want is to be held responsible for damage that wasn’t your fault. However, this happens more often than you think. Many inexperienced PCO drivers accept the keys without checking the vehicle condition, and when they return it, they face fines for the damage they didn’t cause.
So, before signing the contract, take time to check the vehicle condition. Look for any dents or scratches. Even small chips in paint could cost you when returning the car if you didn’t spot them at the time of hiring.
Inspect the tyres, interior, exterior, and make sure all the car’s components are working fine. When inspecting the car, take photos and videos of everything so you have evidence in case of a conflict.
Don’t: Accept a Car Without Proper Licensing
This one is extremely important. Your car needs to have a Private Hire Vehicle (PHV) licence to be considered road-legal. Without it, you can’t drive for Uber, Bolt, and other ride-hailing platforms. If you are caught driving a non-PHV-licensed vehicle, you could lose your own PCO licence, and reobtaining it can be a long, frustrating process.
In addition to PHV licence, your car needs to have a valid MOT and insurance. So, before accepting the keys, ask to see all the documents and make sure they are complete.
Don’t be afraid to double-check if anything seems suspicious. This small effort up front will save you from many headaches later on.
The same rule applies to rent to buy cars, as they need to have proper licensing as well.
Conclusion
These were some do’s and don’ts of PCO car hire contracts. The key takeaway is not to rush the process. Take one step at a time. Read the contract thoroughly, ask questions about things that confuse you, and don’t be afraid to walk away if the terms and conditions don’t align with your preferences.
This is your business – your source of income, and protecting it is your right.
