Posted on the 9th November 2026 in PHTM News
BURY COULD ALLOW WRITTEN OFF CARS TO BE LICENSED AS TAXIS OR PHVS
Taxi drivers in Bury could soon be allowed to use repaired written-off vehicles under plans being considered by local councillors. Bury Council currently bans any car previously written off by an insurance company from operating as a taxi or private hire vehicle.
However, proposals going before the council would relax these rules for Category N vehicles,which have non-structural damage, and Category S vehicles, which have structural damage but can legally return to the road once safely repaired. Drivers would be required to provide an independent engineer's report proving the vehicle's safety before a licence is issued.
The proposed policy change comes as council officers acknowledge Bury is currently one of the most restrictive authorities in Greater Manchester. Most neighbouring councils already permit written-off vehicles, with seven authorities allowing Category N cars and five permitting both Category N and S.
Officials highlighted that the existing ban places unnecessary strain on cab drivers facing rising operational costs, stating: "The licensed taxi and private hire trade continues to experience significant financial pressures arising from increasing vehicle purchase costs, insurance premiums, maintenance expenses and wider economic challenges."
Industry representatives have actively lobbied the council for the reform, arguing that insurers frequently write off cars with minor cosmetic damage purely due to high main-dealer repair rates. In submissions to the council, the National Private Hire and Taxi Association argued: "It seems ludicrous that a driver can buy the car back, repair it, MOT it and it be perfectly safe and suitable to be used on the road but not for licensing."
The trade body noted that damage as simple as a scuffed wing, bumper, and headlight can trigger a write-off, leaving drivers unable to replace their vehicle with low insurance payouts and pushing some out of business entirely: "As we all know, the value of a vehicle reduces substantially from purchase price to second-hand price the moment the vehicle comes out of the workshop."
Council officers are recommending the approval of the updated policy, maintaining that rigorous independent engineering inspections and standard compliance tests will ensure passenger safety is never compromised.
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