Private hire taxi insurance is a specialised type of insurance designed specifically for drivers who transport pre-booked passengers in exchange for payment. Unlike regular car insurance, this policy covers the unique risks associated with operating a private hire vehicle, such as higher mileage, driving during unsociable hours, and transporting multiple passengers. It is a legal requirement for all private hire drivers to have this insurance in place before they can operate.
Private hire taxi insurance is often referred to as "hire and reward insurance" because it covers the commercial aspect of transporting passengers for payment. It is important for taxi drivers working with ride-hailing apps or private hire operators to have this insurance to comply with licensing authority regulations and maintain their taxi badge.
Private hire taxi insurance policies typically include a range of coverages designed to protect both the driver and the vehicle while operating in a commercial capacity. These policies usually provide coverage for:
Vehicle damage: Protection against damage to your taxi caused by accidents, collisions, or other incidents, depending on the level of coverage you choose (comprehensive, third party fire and theft, or third party only).
Liability cover: This protects you against claims from third parties for injury or property damage caused by your taxi while on the road.
Passenger liability: Coverage for injuries or damages sustained by passengers during their journey in your taxi.
Theft and vandalism: Protection against theft of your vehicle or damage caused by vandalism.
Legal fees: Many policies include cover for legal fees arising from claims or disputes related to your taxi business.
Public liability insurance: Some private hire policies include or offer as an add-on public liability insurance, which covers claims made by members of the public for injuries or damages occurring outside the vehicle, such as at your taxi base or during loading and unloading passengers.
Breakdown cover: Optional coverage that provides roadside assistance and recovery services if your taxi breaks down, helping you minimize downtime and loss of income.
Cover for other vehicles: If your policy includes comprehensive coverage, it may also cover damage caused to other vehicles in an accident where you are at fault.
Personal use: While the primary focus of private hire insurance is commercial use, many policies also provide cover for personal use of the vehicle, subject to policy wording and restrictions.
There are three main levels of taxi insurance that you can choose from.
Third party only (TPO) is the most basic level of private hire taxi insurance required by law in the UK. This cover protects you against damage or injury you cause to other people, their vehicles, or property.
However, it does not cover any damage to your own taxi or medical expenses if you are injured in an accident where you are at fault.
This level of car insurance provides third party cover and also pays out if your taxi is damaged by fire, theft, or attempted theft, or if your vehicle is stolen.
This type of policy offers comprehensive cover, providing the highest level of protection. It covers damage to both you and your taxi in the event of an accident, while also including third party, fire, and theft coverage for added security.
The cost of private hire taxi insurance can be higher than standard car insurance due to the increased risks associated with taxi services. Factors such as more miles driven annually, driving during unsociable hours, transporting multiple passengers, and operating larger vehicles contribute to the higher premiums. The commercial nature of transporting people commercially means insurers assess a higher level of risk compared to regular drivers.
You can call us for a quote on 01926 454929, our phone lines are open Monday to Friday 9AM to 5:30PM. Alternatively you can request a callback on our form.
After obtaining a taxi insurance quote, you can discuss your cover needs and the different ways to pay—such as monthly or annual payments—with a member of our team to find the best option for you.
Private hire taxi insurance covers vehicle damage, liability, passenger injuries, legal fees, public liability, breakdowns, damage to other vehicles, and sometimes personal use.
Yes, many private hire taxi insurance policies also provide coverage for food delivery services. This is particularly important for drivers who use their vehicles for multiple purposes, such as transporting pre-booked passengers and delivering food or parcels.
However, it is important to check the specific policy wording or speak with your insurer to ensure that food delivery is included in your coverage. Some insurers may require an additional premium or a specific endorsement to cover this activity.
Private hire insurance is designed for drivers who transport passengers who have pre-booked their journeys in advance. This means the vehicle cannot legally pick up passengers who hail the taxi from the street or a taxi rank.
However, public hire insurance is important for drivers of traditional taxis, such as hackney carriages, which can pick up passengers directly from the street or a taxi rank without prior booking. Public hire taxis are usually more visible on the streets and can be hailed by customers at taxi stands.
The cost of private hire taxi insurance varies depending on several factors that insurers consider when assessing risk. Key factors influencing the price include:
Driving experience
Claims history
The type and size of your vehicle
The area where you operate
The level of coverage
The time it takes to obtain private hire taxi insurance can vary depending on the insurer and the specifics of your application.