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 Correct as of September 2023.
What is 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 used for commercial hire. You’ll need a full taxi licence to apply for a policy.
Why do I need taxi insurance?
You need taxi insurance to make sure both you and your cab are covered when you’re on the road.
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 be aged between 21 and 75. You also need your taxi badge or licence.
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).
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 policy to cover it.
Personal car insurance vs taxi insurance
Personal car insurance isn’t designed for business use. If you drive a taxi for a living, you need to have special taxi insurance by law.
You also need a 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 £2,373 a year.
 51% of our customers were quoted less than £2,372.70 for their taxi insurance in August 2023.
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 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 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 who suffers 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.
Do I need taxi driver insurance?
If you drive a cab for a living then, yes, you’ll need taxi driver insurance. Not only is it a legal requirement, but it offers cover if your cab is damaged or stolen.
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 consider fuel consumption, given the distances you’ll be driving.
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.
How to cut the cost of taxi insurance:
- Build up a no-claims discount
- Choose the right vehicle – opting for one in a lower insurance group could save you money
- Pay annually – paying monthly for your policy is likely to mean paying interest
- 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
- Shop around.
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.
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What details do I need to get a taxi insurance quote?
To get a quote, you’ll need:
- Your vehicle details – including its value, when you bought it and where you keep it overnight
- Annual mileage (both business and private)
- The name of the licensing authority
- Details of 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’ll cover more miles, increasing your risk of being involved in an accident. You also carry passengers, increasing the likelihood of personal injury claims being made against you.
Because you carry passengers, it’s likely that you drive a bigger car, which can fall into a higher car insurance group. The higher the insurance group, the higher your premium is likely to be.
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 or 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.
Can a taxi be used for personal use?
You can drive your taxi in your spare time if your insurance policy covers it. Other members of your household probably won’t be covered, unless they’re also registered as a taxi driver.
Not all licensing authorities allow drivers without a taxi licence to use a car registered for private or public hire, even for domestic use. Always check your 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.