Personal Driver vs. Chauffeur Service

Salary, Taxes, Insurance, and When a Private Chauffeur on Demand Makes More Sense — A Guide for Families, Executives, and Busy Households in Chicago and the Suburbs

By the All Star Limo Team · Serving Chicago and the Suburbs · Updated October 2026

All Star Limo Service — serving Chicago and the suburbs, from downtown, River North and Wicker Park to Orland Park, Tinley Park, Frankfort, Mokena and the Palos area, with rides to O’Hare and Midway. Open 24 hours a day, seven days a week. (708) 998-6336 · allstarchicagolimo@gmail.com · book your ride online.

Quick answer: The personal driver vs. chauffeur service choice comes down to how many hours you actually need a driver. Hiring a personal driver means taking on an employee: a salary, possible employment taxes, insurance on your own car and a backup plan for sick days. A chauffeur service gives you a private chauffeur and a commercially insured vehicle only when you need them, booked by the ride or by the hour. A full-time personal driver can make sense if you need someone on call most of every week. For airport runs, meetings, events and a few errands, a chauffeur service is usually simpler and costs less.

How Hiring a Personal Driver Works

A personal driver typically works for you directly, drives your own vehicle and follows your schedule. That arrangement can make the driver your employee. The IRS Household Employer’s Tax Guide lists drivers among household workers, and if you control what the work is and how it is done, you may owe employment taxes and have reporting duties. Beyond taxes, you are responsible for the car itself, its maintenance and fuel, and making sure your auto insurance covers someone else driving it regularly. This is not tax or legal advice, so speak with a tax professional and your insurer before hiring.

How a Chauffeur Service Works

With our chauffeur service, you book a ride or a block of hours and a professional chauffeur arrives in a vehicle from our fleet. Our chauffeurs are licensed, background-checked and commercially insured, and every vehicle is fully insured and maintained by us. You do not manage payroll, insurance or vehicle upkeep. You pay for the ride or the hours you book, and dispatch is available 24 hours a day.

The Real Difference Is What You Are Responsible For

A personal driver is not simply a chauffeur you see more often. It is a different relationship, because you become the employer and the vehicle owner. That brings control, since the same person knows your routine, but it also brings every responsibility that comes with employing someone. A chauffeur service keeps the private, professional ride and removes the paperwork. If your driver is sick, on vacation or leaves the job, your rides still happen, because dispatch simply assigns another chauffeur.

Comparing the Full Cost

A personal driver’s cost is a salary plus any employment taxes, your vehicle, its insurance, fuel and maintenance, and paid time off. A chauffeur service is priced per ride or per hour with the vehicle, fuel, insurance and chauffeur included. Through our hourly limo rentals, sedans start at $80 per hour, SUVs at $95 per hour and Sprinters at $150 per hour, and most hourly rentals have a 3-hour minimum. Flat-rate airport transfers from downtown start at $90 to O’Hare and $85 to Midway. Add up how many hours you truly need each month, and the right choice usually becomes clear.

Who a Personal Driver Makes Sense For

Households or executives who need a driver for most of the day, nearly every day, are the clearest fit for a personal driver. If your schedule changes by the hour and you want the same person on call around the clock, the cost of employing someone can be worth the convenience, as long as you are ready to handle the employer side.

Who Should Use a Chauffeur Service Instead

People who need a driver a few times a week, for airport trips, business meetings, events or family appointments, get the most from a chauffeur service. So do families arranging rides for older parents, travelers who split time between Chicago and another city, and executives whose schedules are busy but irregular. You can choose a different vehicle for each trip from our fleet, from an executive sedan for a solo meeting to a Sprinter for a family airport run.

What a Typical Week Looks Like With a Chauffeur Service

A typical week might include an early black car ride to O’Hare, a few hours of hourly service for back-to-back meetings downtown, and a ride home from a dinner on the weekend. Each booking is separate, so you pay only for what you use, and there is no car sitting in your garage between trips. For businesses, our corporate limo service can handle the same kind of week for executives and visiting clients, and our guide to corporate chauffeur accounts explains how standing reservations and monthly invoicing work.

What Protects Your Schedule

Booking ahead is the single most important factor within your control. For airport transfers and corporate rides, 24 to 48 hours’ notice is usually enough, and we accept same-day bookings whenever possible. If you have recurring trips, such as a weekly airport run or a standing appointment, tell us when you book so we can plan around them.

Frequently Asked Questions

Is a personal driver the same as a chauffeur?
Not quite. A personal driver usually works directly for you and drives your own car. A chauffeur service provides a professional chauffeur and a commercially insured vehicle each time you book.

Is hiring a personal driver cheaper than a chauffeur service?
Only if you need a driver for many hours every week. For a few rides a week, airport runs or events, paying by the ride or by the hour is usually far less than a salary, taxes, insurance and a vehicle.

Do I have to pay employment taxes for a personal driver?
Possibly. The IRS lists drivers among household workers, and if the driver is your employee, you may owe employment taxes. Check with a tax professional before you hire.

Who provides the car with a chauffeur service?
We do. Every ride uses a late-model, fully insured vehicle from our fleet, and you choose a sedan, SUV, Sprinter or specialty car for each trip.

What happens when a personal driver is sick or on vacation?
You need a backup plan. With a chauffeur service, dispatch assigns another professional chauffeur, so your ride still happens.

Can I book a chauffeur by the hour for errands and meetings?
Yes. Hourly rates start at $80 per hour for an executive sedan, and most hourly rentals have a 3-hour minimum.

Can my company set up recurring chauffeur service?
Yes. A corporate account can cover airport transfers, daily rides and hourly service for your team with standing reservations.

Where do you serve, and how do I book?
We serve Chicago and the suburbs 24 hours a day, seven days a week. Book online or call (708) 998-6336; new customers are welcome.

Find Out Which Option Fits Your Schedule

Whether a personal driver or a chauffeur service is right for you depends on how many hours you really need and how much you want to manage, not which one sounds more exclusive. Book a chauffeur online or call (708) 998-6336. Still have questions? Check our Chicago limo pricing or reach out directly.

All Star Limo Service · Serving Chicago and the Suburbs · (708) 998-6336 · allstarchicagolimo@gmail.com · Open 24/7