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Taxi insurance

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Compare taxi insurance

Taxi cover tends to be more expensive than standard car insurance, but comparing quotes from a range of specialist taxi providers is one way you might keep costs down. Your taxi’s size, its insurance group and how many miles you clock up in a year all affect the cost of insurance. Here’s what you need to know about finding the most suitable taxi insurance deal for you.

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 license in order to apply for a policy.

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.

Public hire insurance can cover you if your taxi is available to pre-book and can be stopped on the street. Public hire taxis are usually company owned and will display a taxi sign on top of the vehicle.

Third party car insurance covers you for injury or damage you cause to other people.

This covers the cost of compensating other people for injury or damage you cause. This is the minimum level of cover you need to legally drive on UK roads. However, it doesn’t provide you with any financial help for injury or repairs to your taxi.

Third party, fire and theft provides cover if your car is stolen or damaged by fire.

This covers the cost of damage or injury to third parties and gives you compensation if your taxi is damaged due to fire or theft or if it’s stolen, but it won’t cover the costs of damage to your taxi in an accident.

Fully comprehensive offers drivers the most complete cover.

This includes all the cover of a third party, fire and theft policy, but could also protect you as a driver and may pay out for damage to your taxi. It could also include compensation for medical treatment and accidental damage. But you will need to check the policy to be sure.

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 is injured or their property is damaged while in your taxi.

Taxi insurance also takes into account things like:

  • Taxis tend to drive a higher number of miles
  • Regular contact with passengers – both the nice and the drunk and unruly
  • 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 opt for the more executive end of the spectrum 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 eg installing an immobiliser. You might need to speak to your insurance provider directly to get any saving reflected
  • Getting a dash cam for your taxi
  • Installing CCTV in your cab. But remember there’s some advice from the Information Commissioner that you need to follow if you do this
  • Shopping around for insurance.

When you’re comparing taxi insurance, don’t just opt for the cheapest policy. Consider whether it gives you the right amount of cover, as policies do vary. This is your livelihood, after all.

Frequently asked questions

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 license in order to apply for a policy.

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, which increases 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 levels of cover are there?

Taxi insurance offers the same three levels of cover as a standard car insurance policy:

  • Third party insurance – covers the cost of compensating other people for injury or damage you cause. However, it doesn’t provide you with any financial help for injury or repairs to your vehicle.
  • Third party, fire and theft – covers the cost of damage or injury to third parties and gives you compensation if your taxi is damaged due to fire or theft or if it’s stolen.
  • Comprehensive car insurance – includes all the cover of a third party fire and theft policy, but could also protect you as a driver and may 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 is injured or their property is damaged while in your taxi.

Do I need public hire or private hire taxi insurance?

Public hire insurance can cover you if your taxi is available to pre-book and can be stopped on the street. Public hire taxis are usually company owned and will display a taxi sign on top of the vehicle.

Private hire insurance can cover you if you drive a taxi that must be pre-booked and can’t be hailed in the street.

How can I get cheap taxi insurance?

You could 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. You might need to speak to your insurance provider directly to get any saving reflected
  • Getting a dash cam for your tax
  • Shopping around for insurance

Why compare taxi insurance with Compare the Market?

Comparing with us could be the best way to get a cheaper deal. We’ll show you some great deals from some of the UK’s most trusted taxi insurance providers. We can help you find the right deal for you by comparing policies based on price, policy cover level, add-ons or annual or monthly payment terms.

Why compare taxi insurance with Compare the Market?

9 providers compared^^ to make things easy for you

On average it can take less than 4 minutes^^^ to complete a taxi insurance quote through Compare the Market

94.0% of users would recommend Compare the Market to friends or family^^^^

^^Correct as of May 2020

^^^On average it can take less than 4 minutes to complete a taxi insurance quote through Compare the Market based on data in May 2020.

^^^^For the period 1st March 2020 to 31st May 2020, 11,723 people responded to the recommend question, 11,015 responded with a score of 6 or above, therefore 94.0% are likely to recommend.

Comparing with us could be a simple way to get a cheaper deal. We’ll show you great deals from some of the UK’s most trusted taxi insurance providers. We can help you find the right deal for you by comparing policies based on price, policy cover level, add-ons or annual or monthly payment terms.

Start a quote

Daniel Hutson

From the Motor team

“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.”

How much does taxi insurance cost?

10% of taxi drivers could achieve a quote of
£1,254**

50% of taxi drivers could achieve a quote of
£1,708***

**10% of people could achieve a quote of £1,254.00 per year for their taxi insurance based on Compare the Market data in May 2020.
***50% of people could achieve a quote of £1,707.20 per year for their taxi insurance based on Compare the Market data in May 2020.

What details do I need to get a taxi insurance quote?

To apply for a quote you’ll need:

  • Details of the vehicle, its current value, when you bought it and where you keep it overnight
  • Annual business and private mileage
  • Details of how you use your taxi, for example, details about any meters, if cash payments are taken, how many passengers you’re licensed for and the licensing authority
  • Details of any security devices, such as CCTV, Thatcham security devices and dash cams, two-way radio
  • Personal details including no claims discount
  • Details of any other drivers
  • The level of cover you want.

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