If you’re a taxi or private hire driver, you may have asked yourself:
Do I still need taxi insurance (Hire and Reward) when I’m not actively carrying passengers?
This is a common question for people driving a taxi, especially during quiet periods or between bookings.
For example:
- When you’re waiting for a pre-booked job
- When you’re parked on a rank as a hackney carriage (black cab)
- When you’re driving home after your shift
- When you’re returning from a completed journey
- When you’re parked between jobs
- When you’re not working for a few weeks
The short answer is:
If your vehicle is licensed for taxi services or private hire use and is on a public road, it must be properly insured at all times.
In most cases, that means maintaining valid hire and reward insurance, even when you are not carrying passengers at that exact moment.
Is Taxi Insurance a Legal Requirement Even When You’re Not Carrying Passengers?
Yes — Under UK law, it is a legal requirement that any vehicle kept or used on a public road must have valid motor insurance.
Official guidance can be found here: www.gov.uk/vehicle-insurance
This applies whether:
- You are carrying passengers
- You are waiting for a booking
- You are driving home
- You are parked on a public road
- You are logged into a ride-hailing app
- You are available for hire as a hackney carriage
If your vehicle is licensed as a taxi, black cab, or private hire vehicle, your insurance must reflect that licensed use.
Taxi licensing guidance is available here: www.gov.uk/taxi-driver-licence
Licensing systems exist to protect members of the public, ensure accountability, and reduce the risk of personal injury or financial loss if there are injuries or damage following an accident.
Why Personal Car Insurance Is Not Enough Between Jobs
Some drivers assume that when they are not actively transporting passengers, personal motor insurance would be enough.
In most cases, this is incorrect.
If your vehicle is:
- Licensed for taxi services
- Being used in connection with your taxi work
- Available for hire
- Logged into an app
- Waiting on a rank
- Driving to collect a pre-booked passenger
You will typically need valid hire and reward taxi insurance.
Standard private car insurance does not cover:
- Carrying passengers for payment
- Public hire taxi use
- Private hire taxi work
- Commercial taxi services
Using the wrong type of insurance could invalidate your policy. If you are involved in an accident, your insurer may refuse to pay for:
- Repairs to your vehicle
- Damage to third-party property
- Compensation for personal injury
- Legal costs
This can result in serious financial consequences.
What Counts as “Working” as a Taxi Driver?
Even if you are not carrying passengers, you may still legally be considered to be working.
You are normally regarded as working if you are:
- Logged into a ride-hailing platform
- Parked and available for bookings
- Waiting on a rank as a hackney carriage
- Driving to collect a passenger
- Collecting a pre-booked job
- Returning from a completed journey
During these periods, you would generally need active private hire insurance or public hire taxi insurance, depending on your licence.
For example:
- A hackney carriage (such as many black cabs) can be hailed by members of the public and will require public hire taxi insurance.
- A private hire driver can only undertake pre-booked work and requires private hire taxi insurance.
In both cases, hire and reward cover remains essential while operating.
What If I’m Completely Off Duty?
If you are entirely off duty and not available for taxi services, the position depends on several factors:
- Whether your vehicle remains licensed
- Whether it is taxed
- Whether it is kept on a public road
- Your specific policy terms
If your licensed taxi vehicle remains taxed and on a public road, it must still be insured.
If you plan not to use the vehicle for a period and want to cancel your insurance, you would usually need to:
- Declare the vehicle as SORN (Statutory Off Road Notification)
- Keep it off public roads
- Store it on private property
You can read about SORN here: www.gov.uk/make-a-sorn
However, cancelling your hire and reward insurance while your vehicle remains licensed may:
- Affect your ability to operate
- Trigger licensing consequences
- Require you to notify your local authority
You should always check with your local council before making changes: www.gov.uk/find-local-council
In London, licensing is overseen by Transport for London (TfL):
tfl.gov.uk/info-for/taxis-and-private-hire
What Type of Taxi Insurance Do I Need?
There are different levels of taxi insurance available, depending on your needs and budget.
Common types include:
Third Party Only
Covers injuries or damage caused to others but not your own vehicle.
Third Party, Fire and Theft
Also known as party fire and theft, this covers third-party damage plus fire or theft of your vehicle.
Comprehensive Cover
Covers damage to your own vehicle as well as third-party claims.
In addition to hire and reward cover, many taxi drivers consider:
- Public liability insurance – may help if a member of the public is injured while entering or exiting your vehicle
- Legal expenses cover – can assist with legal costs following an accident
- Personal accident cover
- Replacement vehicle cover
Having the right protection provides peace of mind, especially when driving a taxi in busy urban areas.
What About Social or Personal Use?
Many taxi insurance policies include limited social, domestic and pleasure use.
However:
- Not all policies include this automatically
- Some restrict personal mileage
- Some limit who can drive the vehicle
You should check:
- Whether social use is included
- Whether additional drivers are covered
- Any exclusions that apply
Even when using your vehicle for personal reasons, if it remains licensed and available for hire, hire and reward cover may still be required.
Can I Switch Between Personal and Taxi Insurance?
Some drivers consider cancelling their taxi insurance during quiet periods and switching back later.
This approach can create risks.
Switching policies may:
- Create gaps in cover
- Affect your vehicle licence
- Increase future premiums
- Require you to notify your licensing authority
If your vehicle is on a public road without valid insurance, you may be committing an offence.
Driving without insurance can result in:
- Fines
- Penalty points
- Vehicle seizure
- Licence issues
Motor insurance rules are explained here: www.gov.uk/vehicle-insurance
Continuous compliance protects your income and your ability to provide taxi services.
What Do Licensing Authorities Expect?
Taxi and private hire licensing frameworks are designed to protect:
- Members of the public
- Passengers
- Drivers
- The wider community
Authorities expect vehicles licensed for hire to be appropriately insured at all times.
Best practice guidance is available here: www.gov.uk/government/publications/taxi-and-private-hire-vehicle-licensing-best-practice-guidance
Statutory standards can be found here: www.gov.uk/government/publications/statutory-taxi-and-private-hire-vehicle-standards
Insurance plays a critical role in:
- Covering personal injury claims
- Covering injuries or damage to third parties
- Protecting passengers
- Protecting drivers from financial loss
Maintaining valid hire and reward cover is part of meeting these obligations.
Summary: Do You Need Taxi Insurance When Not Taking Trips?
In most cases, yes.
If your vehicle is licensed as a taxi, hackney carriage, black cab, or private hire vehicle and is on a public road, you will usually need valid hire and reward insurance, even when not actively carrying passengers.
You typically need taxi insurance when:
- Waiting for bookings
- Driving to collect a passenger
- Logged into an app
- Collecting a pre booked job
- Returning from a trip
- Parked on a public road
- Available for hire
If you intend to stop working entirely, you should check:
- Your licensing authority’s requirements
- Your insurer’s terms
- Whether declaring a SORN is appropriate
Correct insurance protects:
- Your licence
- Your passengers
- Members of the public
- Your income
- Your long-term ability to continue driving a taxi
Above all, it provides essential financial protection and peace of mind.