Taxi insurance
COMPARE CHEAP TAXI INSURANCE QUOTES
- Get a taxi insurance quote in 6 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
- Plus, enjoy fantastic rewards on us*
[1] Correct as of December 2024.
What is taxi insurance?
Taxi insurance is a legal requirement if you drive a taxi for a living. It’s also known as PCO (Public Carriage Office) 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.
What type of taxi insurance do I need?
It depends on the taxi services you provide.
Private hire insurance
Private hire insurance – also known as PHV insurance – offers cover 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 such as Uber.
Public hire insurance
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 level of cover do I need for my taxi?
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 a potential payout 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.
Your local authority may also insist you have public liability insurance to drive your taxi in their area.
What details do I need to get a taxi insurance quote?
To get a quote using our public and private hire comparison service, we’ll need a few details about:
The cab you drive
- Including the registration number or make and model, its value, when you bought it and where you keep it overnight.
- Plus, your personal details, including your age and address.
How you use your cab
- The name of the licensing authority and the date you got your taxi licence.
- If you want taxi insurance quotes for public or private hire.
- Do you work for a ride-hailing app?
- The level of cover you want.
- Annual mileage (both business and private).
- Your driving history and any claims made in the past five years.
- Details of any other drivers.
Security and modifications
- Details of security devices, such as CCTV, Thatcham security devices, dash cams, GPS trackers or two-way radio.
- Any modifications made to the taxi, such as accessibility adaptations to accommodate passengers with disabilities.
Why do I need taxi insurance?
If you want to drive a cab for a living, you need taxi insurance when you’re on the road. It’s the law.
And 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 fewer 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 can vary. It depends 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 typically need to have a full GB or NI driving licence (or sometimes a full EU licence), held for at least 12 months. You must also have 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.
If you work as a taxi or PHV driver without a taxi or PHV driver licence, you could be prosecuted.
What vehicles can I drive with taxi insurance?
Taxi insurance generally covers different types of cars-for-hire, including:
- Black cabs
- Ride-hailing app cabs
- Minicabs
- Private hire vehicles (PHVs)
- Regular saloon cars
- 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.
As long as you’re a registered taxi driver, you can also use your vehicle for personal use – often referred to as social, domestic and pleasure purposes. But because rules can vary, depending on your local council, it’s a good idea to check in advance.
Personal car insurance vs taxi insurance
If you drive a taxi for a living, you need to have taxi insurance by law.
Personal car insurance doesn’t cover business use. And standard business car insurance doesn’t cover carrying passengers for hire and reward.
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 vehicle you drive
- Your annual mileage
- Where you live and drive.
According to Compare the Market data, 51% of our customers were quoted less than £2,839.30 for their taxi insurance in October-December 2024.
What does taxi insurance cover?
It depends on the policy and what level of cover you go for, whether that’s:
- Third-party
- Third-party, fire and theft
- Comprehensive.
Ideally, taxi insurance should include public liability insurance. This offers financial protection if a member of the public makes a claim against you for injury or damage to their property.
What’s more, your local authority may insist you have public liability insurance to drive your taxi in their area.
When you compare taxi quotes with us, you can filter your quotes to include public liability cover.
Who can drive my insured taxi?
You can normally add multiple drivers to your taxi insurance policy if they meet your insurance provider’s criteria. For example, any named drivers will need to have a valid taxi licence.
You may have to pay extra to add an additional driver to your policy. Depending on their experience and driving history, and how that relates to your own, it could either increase or lower 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.
It’s important to note that 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.
How can I get cheaper taxi insurance?
Start by choosing your vehicle carefully. If you’re buying a new vehicle to use as a taxi, it could be worth opting for a four-door vehicle that falls into a low insurance group, if possible. But always check, to be safe.
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 often 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. Of course, you’ll have to factor in if a car with good fuel efficiency is cheaper to buy upfront or not. |
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.
- Don’t pay for additional cover you don’t need – consider if policy add-ons are worth paying extra for.
- Shop around for cheap taxi insurance quotes.
When comparing policies, don’t simply opt for cheap private hire taxi insurance without checking it meets your needs. 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 December 2024.
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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
Taxi insurance FAQs
Why is taxi insurance so expensive?
Insuring a taxi tends to be more expensive than insuring a normal car because it accounts for the fact that:
- Taxis clock up more miles than private cars
- Taxi drivers often work in built-up areas
- Taxi drivers come into regular contact with passengers – including drunk and unruly people – and that increases the likelihood of personal injury claims
- Taxis are often driven in heavy traffic and stressful situations
- Driving is often at either unsociable hours or at the busiest times of the day.
These factors increase your risk of being involved in an accident and that means higher premiums.
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 fare 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 or even five.
Please note that you can’t currently compare multi-vehicle policies with Compare the Market.
