What Is Taxi Insurance?

What Is Taxi Insurance?

9 August 2021
what is taxi insurance

So what is taxi insurace? Taxi insurance is essential for any taxi driver. This type of insurance policy is specifically designed to cover yourself, as well as your car. 

Is taxi insurance necessary

Taxi insurance is required by law for anyone who intends to use their vehicle as a taxi. Standard car insurance will not cover you, and there are a number of reasons for this. 

First of all, you will be covering far more miles than a standard car driver who is using their vehicle to commute to and from work. Therefore there is a greater risk of accidents, therefore your insurance will need to accommodate accordingly.  

Things to consider

There are a number of different things to consider when comparing insurance. Your cover will be different depending on a number of factors.

Vehicle Modifications – Any modifications made to your vehicle need to be declared in order to be fully covered. This could be anything from cosmetic modifications or things such as installing wheelchair access into your vehicle.

Vehicle Type – Depending on the size of your vehicle, different cover may be necessary. Anything with more than 5 seats will require additional cover.

Type of Business – You will have to consider whether you will be a pre-booked, private hire taxi. Or the type who accepts passengers from the side of the road.

Number of Vehicles – A fleet policy would be the more attractive option for those looking to insure 5 or more vehicles with the intention to be used as taxis. 

Where Your Business Operates – Depending on where you are intending to operate, your policy will need to have you covered for said areas.

Types of taxi insurance

PCO InsurancePCO (Public Carriage Office) is part of transport for London. PCO is responsible for licensing black/mini cabs within the city.

Public Hire – If you wish to pick up passengers who hail your cab from the side of the road, public hire insurance is for you. This is the only form of insurance that will allow you to pick up passengers without a prior booking.

Private Hire – Private hire insurance means that you are only insured when you pick up passengers who have pre-booked.

What is covered with taxi insurance?

This type of insurance for the most part will cover your vehicle in a similar way to standard car finance. However taxi insurance will offer cover for yourself as well as your passengers should anything bad happen whilst you are on the clock. These insurance policies can include but are not limited to.

What is not covered with taxi insurance

The cost

Compared to standard car insurance, taxi insurance is quite a bit more expensive. However, the conditions of the price of your insurance will however be fairly similar to standard car insurance. Such as what kind of vehicle you drive as well as your driving record and also where you live.

Do Uber drivers need insurance?

If you are an Uber driver, private hire insurance would be the most appropriate form of insurance. This is simply because users have to book through the app and cannot hail your taxi from the side of the road.

Can I use my taxi with normal car insurance?

If you are using your taxi to ferry paying customers with only standard car insurance in place, your regular car insurance will become void. This is because you will need a commercial private hire policy instead. Therefore taking paying passengers without the appropriate insurance should never be done as it is illegal and you can also be charged for driving without insurance.

Short term insurance

If you only operate a taxi part time, then short term insurance might be the way to go. This is because your cover is flexible as well as being cheaper than annual policies.

Public liability insurance

Public liability insurance is important for all taxi drivers because it can protect you from unforeseen circumstances. Such as an accident taking place involving your passenger. Therefore it is important for taxi drivers to have public liability insurance for peace of mind.  

Compare taxi insurance

Conducting an insurance comparison has never been easier. Here at Bright Compare we will always try our absolute best to find the best deal possible for you. We have a team of experienced brokers available to provide you with any advice you may need regarding taxi insurance.


To conclude, taxi insurance is essential for you and your business if you intend to operate your vehicle as a taxi. However, what type of insurance you choose depends entirely on how you intend to use your vehicle for your business. Therefore it is highly recommended to weigh up all of your options before taking out any form of insurance. 


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