Taxi insurance

Personal car insurance covers private use and doesn’t let you operate as a taxi driver. Taxi insurance covers carrying paying passengers for hire and reward.

Taxi policies are designed for the extra risks that come with the job, such as transporting paying passengers and typically spending more time on the road. Insurers assess these risks differently from personal car insurance, so cover is tailored to match. 

A personal policy doesn’t legally cover you to work as a taxi driver. Business car insurance doesn’t usually cover carrying passengers for hire and reward either. 

Taxi insurance covers the specific vehicle named on your policy, such as black cabs, private hire vehicles (PHVs), minicabs, ride-hailing cars, saloons or multi-purpose vehicles (MPVs) used for hire and reward.

You’re usually only insured to drive that named vehicle, and if you have another car for personal use, you’ll need a separate policy.

Most taxi insurance also allows social, domestic and pleasure use, but local council rules may vary.

To get a taxi licence in England and Wales, you’ll need to have held a full British, Northern Ireland or EU driving licence for at least 12 months.

If your licence is from another country, check the rules about using it in the UK on the GOV.UK website. 

You’ll also need the right to work in the UK, approval from your local licensing authority, and pass background checks.

You may need to do an enhanced criminal record check from the Disclosure and Barring Service (DBS) depending on the area.

Additional requirements may include:

• A medical exam

• An additional driving test

• A ‘knowledge’ test

• An English test.

Check the costs and requirements for your taxi licence with your local council. Or if you want to drive in London, contact Transport for London (TfL).

If you work as a taxi or PHV driver without a taxi or PHV driver licence, you could be prosecuted.

Rules differ in Scotland and Northern Ireland. 

Only drivers with a valid taxi licence who are named on your policy can drive your insured taxi, as long as they meet your insurance provider’s criteria. 

You may have to pay extra to add an additional driver to your policy. Depending on their experience and driving history, this could change your premiums. 

You’ll also need to make sure that, as the main driver on the policy, you’re the one who does most of the driving. Otherwise, you could be guilty of fronting.

Under UK legislation, local authorities in England and Wales won’t allow drivers without a taxi badge to drive a vehicle licensed for private hire.

When buying taxi insurance, you should consider whether you need extra add-ons such as breakdown cover, windscreen cover, legal expenses cover or a replacement vehicle option.  

These can give you useful protection, such as help if your taxi breaks down, cover for windscreen repairs, support with legal costs, or access to a licensed replacement taxi while yours is being repaired. 

A taxi can be used for personal use as long as your insurance policy and your local authority permit 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.

You’ll usually need at least two taxis to qualify for fleet insurance, although some providers may require you to have three or even five. 

You can’t compare multi-vehicle policies with Compare the Market.

Taxi insurance covers licensed taxis, such as black cabs, and private hire vehicles, such as minicabs. Chauffeur insurance is designed for executive or luxury car hire.

Both are types of hire and reward cover, so a standard car insurance won’t cover either. 

Insurers set their own definitions, so check which vehicles and types of work your policy covers.