Taxi insurance
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- Get an insurance quote in 5 minutes[1] for all types of taxi service, from black cabs to private-hire cars, such as minicabs
- Protection for you, your car and your customers while driving
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[1] Correct as of September 2024.
What is taxi insurance?
Taxi insurance is a legal requirement if you drive a taxi for a living. It’s also known as Public Carriage Office, or PCO, insurance for cab drivers licensed in London.
Taxi insurance is designed to protect you, your car and your customers when you’re driving a car used for commercial hire. You’ll need a full taxi licence or taxi badge from your local authority to apply for taxi insurance.
Why do I need taxi insurance?
If you want to drive a cab for a living, you need taxi insurance to make sure both you and your cab are covered when you’re on the road. It’s the law.
Insurance policies can cover all types of taxi service, from traditional black cabs to ride-hailing apps like Uber.
Crucially, having the right type of vehicle cover allows you to protect your livelihood if a claim is made against you.
Who can get taxi insurance?
To get a taxi insurance policy, you need to hold a full UK driving licence. You also need your taxi badge or licence.
Some taxi insurance providers may set age restrictions. For example, younger drivers in their early twenties may have less policies to choose from. And providers won’t generally cover taxi drivers over the age of 75.
How do I get a taxi licence?
The process to get licensed as a taxi driver varies, depending on the area you want to drive in and the requirements of the local authority that manages licensing there.
To qualify for a taxi licence, you’ll generally need to have a full GB or NI driving licence, held for at least 12 months, and the right to work in the UK. You may also have to pass background checks and, in some cases, get an enhanced criminal record check from the Disclosure and Barring Service (DBS).
You may also need to pass:
- a medical exam
- an additional driving test
- a knowledge test
- an English test.
To find out what you need to do to get your taxi licence and the costs involved, speak to your local council. Or if you want drive in London, contact Transport for London.
What vehicles can I drive with taxi insurance?
Minicab insurance generally covers different types of cars-for-hire, including black cabs, ride-hailing app cabs, private hire vehicles (PHVs), regular saloon cars and MPVs (multi-purpose vehicles), such as people carriers.
Each policy is different, but your taxi insurance is likely to only cover you when you’re driving that particular vehicle. If you have another car for domestic use, you’re likely to need a separate car insurance policy to cover it.
Personal car insurance vs taxi insurance
Personal car insurance isn’t designed for business use. And standard business car insurance isn’t designed for carrying passengers for reward.
If you drive a taxi for a living, you need to have special taxi insurance by law.
You also need a taxi licence. If you work as a taxi or PHV driver without a taxi or PHV driver licence, you could be prosecuted.
How much does taxi insurance cost?
The cost of taxi insurance depends on a number of factors, including your age, the type and size of car you drive, your annual mileage, and where you live and drive.
According to Compare the Market data, 51% of taxi drivers could achieve a quote of up to £2,860 a year[2].
[2] 51% of our customers were quoted less than £2,859.73 for their taxi insurance in July-September 2024.
What’s the difference between private hire and public hire taxi insurance?
Private hire insurance – also known as PHV insurance – can cover you if you drive a taxi that must be pre-booked and can’t be hailed in the street. This is the type of taxi insurance you’ll need if you have a minicab or drive for a ride-hailing app.
Public hire insurance offers cover if your taxi can be stopped on the street or picked up from a taxi rank. Public hire taxis are usually company owned and display a taxi sign on top of the vehicle, like the famous London black cabs.
What type of taxi insurance do I need?
As with all motor insurance, there are three levels of taxi car insurance to choose between:
Third party
Third-party car insurance can cover injury or damage you cause to another person or their vehicle. It’s the minimum level of cover you need to legally drive on UK roads.
However, it doesn’t provide you with any financial help for your own injuries or repairs to your taxi.
Third-party, fire and theft
Third-party, fire and theft can cover the same as third-party insurance, but also offers compensation if your taxi is stolen or damaged due to fire.
It won’t cover the costs of repairing your taxi if you’re in an accident.
Comprehensive
Comprehensive includes all the cover you’d get with a third-party, fire and theft policy. However, it could also protect you as a driver and can cover repairs to your taxi.
What does taxi insurance cover?
Ideally, taxi insurance should include public liability insurance. This could cover legal or compensation claims from a passenger if they suffer an injury or their property is damaged in your taxi.
Taxi insurance also accounts for the fact that:
- Taxis clock up more miles than private cars
- Taxi drivers come into regular contact with passengers – including drunk and unruly people
- Taxis are often driven in heavy traffic and stressful situations
- Driving is often at unsociable hours.
Who can drive my insured taxi?
You can normally add multiple drivers to your taxi insurance policy if they meet your provider’s criteria. For example, any named drivers will need to have a valid taxi licence too.
You’ll also need to make sure that, as the named main driver, you’re the one who does most of the driving. Otherwise, you could be guilty of fronting.
You may have to pay a little extra to add an additional driver to your policy. Depending on the experience and driving history of the driver you add, it could either bump up or lower your premiums.
How can I get cheap taxi insurance?
Start by choosing your vehicle carefully. If you’re buying a new vehicle to use as a taxi, it’s worth choosing a four-door vehicle that falls into a low insurance group, if possible.
Your choice of car may depend on the kind of taxi service you want to provide. If you want to offer an executive service, you’ll need a luxury vehicle to match. All these factors could affect the cost of your insurance.
Top tip:
If you’re searching for a car to use as a taxi, look for a vehicle with good fuel efficiency. A car with lower fuel consumption could save you money over the long run, given how often you’ll be driving. And it’s sensible to choose a car that complies with low emission zone rules, to avoid paying charges to enter the clean air zones found in many cities.
How to cut the cost of taxi insurance:
- Build up a no-claims discount
- Pay annually – paying monthly for your policy is likely to mean paying interest.
- Choose a higher voluntary excess – just make sure you can afford to pay both the voluntary and compulsory excess if you need to make a claim.
- Drive safely to avoid convictions that can increase the cost of your premium
- Park securely overnight
- Increase your car’s security – by installing an immobiliser, for example.
- Get a dash cam
- Prove you’re a safe driver – some providers offer apps that will monitor your driving and reward safe driving with lower premiums.
- Avoid modifying your vehicle.
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Don’t pay for optional cover you don’t need – consider if policy add-ons are worth paying extra for.
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Shop around for quotes from different taxi insurance brokers.
When comparing policies, don’t simply opt for the cheapest taxi insurance. Consider whether it gives you the right amount of cover, as policies vary.
Why compare taxi insurance quotes with Compare the Market?
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We compare 19 taxi insurance providers[1]
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[1] Correct as of September 2024.
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What details do I need to get a taxi insurance quote?
To get a quote, you’ll need:
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Your vehicle details – including the registration number or make and model, its value, when you bought it and where you keep it overnight.
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Annual mileage (both business and private).
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The name of the licensing authority and the date you got your taxi licence.
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Details of security devices, such as CCTV, Thatcham security devices, dash cams or two-way radio.
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Personal details, including your age and address.
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Details of your driving history and any claims made in the past five years.
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Details of any other drivers.
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The level of cover you want.
What our expert says...
“If you’re looking for taxi insurance, we can help you compare prices and policies from insurance providers who have specialist experience of the market.”
- Julie Daniels, Insurance expert
Frequently asked questions
Why is taxi insurance more expensive than car insurance?
Insuring a taxi tends to be more expensive than insuring a normal car as you’ll cover more miles, often in built-up areas, at the busiest times of the day. These factors increase your risk of being involved in an accident and that means higher premiums.
You also carry passengers, increasing the likelihood of personal injury claims being made against you.
What else should I consider when buying taxi insurance?
When buying taxi insurance, consider any add-ons you might need, such as:
- Breakdown cover – get rapid assistance if your taxi breaks down, whether on a pick-up or driving between jobs.
- Windscreen cover – could cover the cost of repairing or replacing your windscreen if it’s chipped, cracked or smashed.
- Legal expenses cover – could help cover legal bills if a passenger or other road user makes a claim against you.
- Replacement vehicle – covers the use of a licenced replacement taxi to use while yours is being repaired.
Can a taxi be used for personal use?
You can drive your taxi in your spare time if your insurance policy covers it and your local authority permits it. Other members of your household probably won’t be covered, unless they’re also registered as a taxi driver.
The terms of your taxi licence will vary, depending on the licensing authority that issued it. Check to make sure your council allows you to use your registered taxi for domestic use.
And always check your taxi insurance policy details to make sure you’re covered.
How many taxis are required for fleet insurance?
How many taxis you’ll need to qualify for fleet insurance may differ, depending on the insurance provider. Some will cover you if your business has two or more vehicles; others require you to have three.
Please note that you can’t currently compare multi-vehicle policies with Compare the Market.