Although it's illegal to operate as a taxi without a licence from the Public Carriage Office or local authority, it doesn't seem to stop unlicensed taxis operating across the country.

Taxis that operate illegally are not monitored by, or answerable to, anyone. So there are no guarantees of passenger safety. Unlike licensed taxis, illegal minicabs may not be roadworthy and may not be insured in the event of a road traffic accident.

Access Legal from Shoosmiths legal executive and personal injury specialist, Hayley Brown said: "The best advice is to plan your journey in advance. Always make sure you use either a black Hackney cab or pre-book a taxi through a licensed minicab operator.

"Never hail a cab on the street unless it's a licensed Hackney Carriage. Getting into an unlicensed taxi could mean you're not insured in the event of an accident."

So what happens if you're travelling as a passenger in a taxi that's not insured at the time of an accident and you've suffered an injury?

The Motor Insurers' Bureau was established in 1946 as a central fund to provide a means of compensating the victims of road traffic accidents caused by negligent uninsured and untraced drivers.

The Uninsured Drivers Agreement requires the MIB to meet unsatisfied civil court judgments against identified motorists who may not have been insured as required by the Road Traffic Act 1988.

However, under Clause 6(e) of the Agreement, there are exceptions to this rule. The MIB will not deal with a claim if:

• before the passenger gets into the car (or after he's got in and had a reasonable opportunity to get out), the passenger knew or ought to have known that the vehicle had been stolen, unlawfully taken, or was being used without a valid policy of insurance

But because many taxis are standard saloon cars, how is it possible to distinguish between a licensed taxi and an unlicensed one?

Hayley said: "Always look for the taxi license number, taxi firm phone number printed on the side of the vehicle, and for the discs in the front and back windows to see if it's the taxi you ordered. Check the driver's identification to make sure he's from the company you ordered the taxi from.

"Generally speaking, unlicensed taxis often don't have meters, so if the driver tries to agree the fare with you at the beginning, this could indicate that the taxi isn't licensed."

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