When do You Need Taxi Insurance?

If you drive passengers in exchange for money, it is a legal requirement in the UK that you have a Taxi Insurance Policy. Whatever the vehicle and however you get your passenger, the appropriate type and level of Taxi Insurance is crucial. This is true if you drive a black cab in London, a mini-bus around the lanes of Yorkshire or collect Uber passengers in Manchester. Please remember: Private Car Insurance is not sufficient if you are carrying paying passengers.

Public Hire Taxi Insurance or Private Hire Taxi Insurance?

You know you need Taxi Insurance, but there are a variety of policies available and their cover – and their cost – will be influenced by a number of factors. First off, do you need Public Hire Taxi Insurance or Private Hire Taxi Insurance?

Public Hire Taxis are quite easy to define. If your vehicle can be stopped by potential passengers in the street, or picked up from a taxi rank, that’s a Public Hire Taxi.

Private Hire Taxis cover a much broader set of businesses, but all of them only take passengers who have pre-booked. Uber drivers, minicab drivers, drivers taking passengers to airports, weddings or events will all fall into this category – along with a wide variety of other businesses and vehicle types.

Other Insurance Options for Taxis

Compare quotes and review policies to find the cover you need.

Public Liability Insurance

Hire and Reward Insurance

What Levels of Taxi Insurance are available?

Much like private Car Insurance, Taxi insurers will usually offer three levels of cover:

• Third Party
• Third Party, Fire and Theft
• Fully Comprehensive

Although the UK Law only requires the minimal level of Taxi Insurance cover, in this case, Third Party, it is worth remembering that only a Fully Comprehensive Taxi Insurance policy will protect you, the driver, and pay out for any damage caused to your taxi in an accident. If you rely on your vehicle to make your living, knowing that you will have help to get it back on the road again, should an accident happen, gives you the peace of mind of knowing that you’ll be able to get back to work as soon as possible – and have the financial support to do it.

What about Public Liability Cover?

One of the most significant differences between insuring your own, private car, and a taxi is the fact that, as a driver of paying passengers, you are working with the public and are, therefore, open to claims against you in the event that a passenger is injured or their belongings are damaged. Public Liability Insurance protects businesses against these claims.

Some Taxi Insurance Policies will include Public Liability cover, some will offer it as an additional extra which you can add on. But be aware that some Taxi Insurance policies may not have any Public Liability cover at all. If you choose a Taxi Insurance policy without Public Liability cover, it would be wise to consider taking out a separate policy to offer that cover. You’ll find more information and be able to compare quotes on our Public Liability Insurance Page.

Can I still use my car for personal use too?

Good question! Many private hire taxi drivers use their own car and will still want to be insured to use it as a private vehicle when they aren’t working. If this is important to you, then make sure you look out for personal use cover on the Taxi Insurance policies that you are considering. Some Taxi insurers will offer personal use as standard – with others you may need to request to have it added as an optional extra.

Is Taxi Insurance expensive?

Taxi Insurance costs will probably seem expensive if you are comparing them with the cost of insuring a private car. That’s because, compared to the average car driver, taxi drivers tend to:

a) spend more hours on the road
b) cover more miles in a year
c) more often be driving in city centres or areas of heavy traffic
d) more often be driving at peak hours or late at night

All of these factors add to the level of risk that Insurance providers use to calculate the Taxi Insurance premiums. Taxi drivers often have larger vehicles, which are also more expensive to insure.

This doesn’t mean that you can’t get great value Taxi Insurance in the UK. Once you have understood the factors involved, and have a clear idea of the kind of cover you need for your individual circumstances, you can compare a range of Taxi Insurance policies to find the right one at the right price.

Review Other Insurance Products

Whether you are looking for add-ons to your Taxi Insurance policy or want to get ahead and start comparing quotes for your other insurance products, choose from these types of UK Insurance to get started.

On The Road

Home & Buildings

Business, Work & Trade

Travel, Holidays & Leisure

Personal, Family & Pets