Table of Contents
What Is Monthly Taxi Insurance?
Benefits of Monthly Taxi Insurance
Monthly vs Annual Taxi Insurance – At a Glance
How to Arrange Monthly Taxi Insurance in the UK
Frequently Asked Questions About Monthly Taxi Insurance
If you drive a taxi in the UK, you already know insurance is not optional: it’s a legal requirement. But what if you do not need cover all year round? Or perhaps your work patterns change from month to month? In these situations, monthly taxi insurance (also referred to as a 30-day taxi insurance policy) could be a more practical choice. This guide explains what monthly taxi insurance is, who it is designed for, how it compares to annual policies, and the key points to consider before you make a decision.
What Is Monthly Taxi Insurance?
Monthly taxi insurance is a flexible form of cover that allows you to insure your taxi on a rolling monthly basis rather than committing to a 12-month policy. Short term taxi insurance offers the same core protection as an annual taxi policy, such as:
- Vehicle cover – for theft, damage or accidents, with options for comprehensive, third party, fire and theft, or third party only.
- Hire and reward insurance – legally required when carrying passengers for payment.
The main difference is that you pay for cover only during the months you need it. This flexibility can be especially useful if you work seasonally, are new to the trade, or have varying work commitments.
Who Is Monthly Taxi Insurance For?
30-day taxi cover can work well in a variety of situations:
- Seasonal or part-time drivers – for example, if you work during busy holiday periods or local events but not all year.
- New drivers – those wanting to test the waters of taxi driving before committing to an annual policy.
- Drivers between jobs or vehicles – if you are waiting for a new car or taking a break from full-time work.
- Temporary work cover – for drivers who take on occasional private hire work alongside other jobs.
Benefits of Monthly Taxi Insurance
There are several potential advantages to choosing monthly cover, including:
- Pay only for the months you need, without committing to a full 12-month policy.
- No long-term commitment, your policy can lapse at the end of the month if you no longer require it, rather than having to cancel an annual policy.
Things to Consider Before Choosing Monthly Taxi Insurance
While monthly cover offers convenience, there are points to weigh up before you decide:
- Monthly policies can be more expensive over the course of a year compared to annual cover.
- Stopping and starting insurance may create gaps in your no-claims history, which can affect future premiums. You also will not accrue any no claims discount if there are gaps in cover.
- You should check exactly what is included in your policy, for example whether it covers both public hire and private hire.
- Licensing authorities may have specific rules about proof of insurance, even for monthly cover; For example, councils typically require valid hire-and-reward insurance as part of your taxi or private hire licence. With monthly policies, you may need to supply updated proof more often to keep your licence in good standing.
Gaps in cover mean you cannot drive legally or claim for damage: If your policy lapses, you cannot drive the vehicle or carry passengers, and you will have no protection for any incidents including fire and theft until cover is reinstated.
Monthly vs Annual Taxi Insurance – At a Glance
| Feature | Monthly Taxi Insurance | Annual Taxi Insurance |
| Commitment | One month at a time | Full year |
| Amending your policy | You can choose cover only for the months you need and adjust or stop at the end of the month when your circumstances change | Changes are usually only possible at renewal or with mid-term adjustments |
| Overall cost if used year-round | Often higher | Usually lower |
| Best for | Short-term, seasonal, or trial periods | Full-time, consistent driving |
How to Arrange Monthly Taxi Insurance in the UK
If you are thinking about arranging monthly taxi cover, follow these steps:
- Gather your documents – taxi badge, driving licence, proof of address, and vehicle details.
- Decide on your cover level – comprehensive, third party, fire and theft, or third party only.
- Compare quotes – review both prices and the details of what is included.
For more helpful guides on taxi insurance, including tips on getting started as a taxi driver and understanding your cover options, visit the taxi section of our blog.
When Monthly Taxi Insurance Might Not Be Right for You
- You drive full-time year-round, making annual cover more cost-effective and ensures no gaps in cover.
- You want to build or maintain a no-claims bonus.
Tips for Getting the Best Value from Monthly Taxi Insurance
- Compare quotes from several providers to find the best fit for your needs.
- Keep track of your renewal dates to avoid being uninsured.
Frequently Asked Questions About Monthly Taxi Insurance
- Is monthly taxi insurance legal in the UK? Yes. As long as the policy includes hire and reward cover, a monthly taxi policy will meet the legal requirements for carrying passengers for payment.
- Is monthly taxi insurance more expensive than annual cover? It can be. Monthly policies may have a higher per-month cost, so if you drive most of the year, an annual policy may be better value.
- Does monthly taxi insurance cover both public hire and private hire? Not always. Some policies are specific to either public hire or private hire, so confirm this before buying.
- What if I need a shorter term than one month? If you only need cover for a brief period, monthly taxi insurance might still be longer than you require. At Acorn Insurance, we also offer 7-day taxi insurance policies, giving you the flexibility to arrange cover for just a week at a time. This can be ideal if you are covering a temporary job or trying out the trade.
The Bottom Line
Monthly (30-day) taxi insurance is a flexible and convenient option for part-time drivers, seasonal work, or those testing the taxi trade. However, it is important to weigh the higher potential cost against the benefits. At Acorn Insurance, we can help you arrange short term taxi insurance options — both monthly and 7-day taxi insurance — as well as annual taxi cover, so you can find policy that suits your driving needs. You can get an online taxi insurance quote with Acorn Insurance today.