Correct as of December 2022.
Why do I need taxi insurance?
Taxi insurance is a legal requirement if you drive a taxi for a living. It’s designed to protect you, your car and your customers when you’re driving a car that’s being used for commercial hire. You’ll need a full taxi licence to apply for a policy.
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 means you can protect your livelihood if a claim is made against you.
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How much does taxi insurance cost?
The cost of taxi insurance depends on a number of things, including your age, the type and size of car you drive, your annual mileage and the area where you plan to drive.
But according to Compare the Market data, 51% of taxi drivers could achieve a quote of up to £2,190 a year.
 51% of our customers were quoted less than £2,189.57 for their taxi insurance in November 2022.
What’s the difference between private hire and public hire taxi insurance?
Private hire 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 Uber.
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 will 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 cover to choose from:
Third party car insurance covers you for 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 covers the same as third party insurance, but also offers compensation if your taxi is damaged due to fire or if it’s stolen. It won’t cover the costs of damage to your taxi because of an accident.
Fully comprehensive includes all the cover of a third party, fire and theft policy, but can also protect you as a driver and pay out for damage to your taxi.
What should taxi insurance cover?
Ideally, taxi insurance should include public liability insurance. This could cover any legal or compensation claims from a passenger who’s injured or their property is damaged while in your taxi.
Taxi insurance also takes into account that:
- Taxis tend to clock up a higher number of 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.
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. But you’ll also need to pay attention to fuel consumption figures, given the nature of your job.
It might also depend on the kind of taxi service you want to provide – you may want to offer an executive service and need a more luxury vehicle to match. All of these factors could affect the cost of your insurance.
You could help cut the cost of taxi insurance by:
- Building up a good no-claims discount
- Driving safely to avoid convictions as they can increase the cost of your premium
- Increasing your car’s security, by installing an immobiliser, for example. You might need to speak to your insurance provider directly to get any saving reflected in your premium
- Getting a dash cam for your taxi
- Shopping around for taxi insurance.
When you’re comparing, don’t just opt for the cheapest taxi insurance. Consider whether it gives you the right amount of cover, as policies do vary. This is your livelihood, after all.
What details do I need to get a taxi insurance quote?
To get a quote, you’ll need:
- Details of your vehicle, its current value, when you bought it and where you keep it overnight
- Annual business and private mileage
- The name of the licensing authority
- Details of any security devices, such as CCTV, Thatcham security devices, dash cams or two-way radio
- Personal details, including any claims made in the past five years
- Details of any other drivers
- The level of cover you want.
Frequently asked questions
Why is taxi insurance more expensive than car insurance?
Insuring a taxi tends to be more expensive than insuring a car as you’re likely to cover more miles each year, which increases your risk of being involved in an accident. You also carry passengers, so there’s the likelihood of personal injury claims being made against you.
And because you carry passengers, it’s likely that you drive a bigger car, which can often fall into a higher car insurance group. The higher the car insurance group your car is in, the higher your premium is likely to be.
What else should I consider when buying taxi insurance?
Think about any add-ons you might need to fully protect you and your taxi. For an extra cost, these could include:
- Breakdown cover – get rapid assistance if your taxi breaks down, whether on a pick-up or driving between jobs.
- Windscreen cover – this can ensure your taxi’s windscreen is repaired quickly if it gets chipped, cracked or smashed.
- Legal expenses cover – can help cover your legal bills if a claim is made against you by a passenger or other road user.
Can a taxi be used for personal use?
You can use your taxi for personal use if your insurance policy specifically covers you for this. Others in your household probably won’t be covered to drive your vehicle, though, unless they’re also registered as a taxi driver.
Be aware that not all licensing authorities will allow people without a taxi licence to drive a car that’s registered for private or public hire, even if it’s just for domestic use. Always check your policy details thoroughly to make sure you’re covered.