Table of Contents
Taxi Insurance vs Car Insurance: What’s the Difference?
Types of Taxi Driver Insurance (and Who Needs What)
What Do UK Speed Cameras Detect?
Cover Levels: What’s Included?
What Do You Need to Get Taxi Insurance?
Why Does Taxi Insurance Cost More?
Final Tips: Getting the Right Cover
If you’re thinking about becoming a taxi driver, or you’re already driving a taxi and want to make sure you’re properly covered, it is important to understand what taxi driver insurance is and how it differs from other types of motor insurance. Taxi drivers face unique risks, and standard car insurance won’t cover you if you’re picking up and dropping off passengers for a fee. This guide explains the different types of taxi cover, what you’ll need depending what type of driver you are, and key terms like PHV (Private Hire Vehicle), PCO (Public Carriage Office), and Hackney Carriage (an alternative term for black cabs).
Taxi Insurance vs Car Insurance: What’s the Difference?
While standard car insurance is designed for personal driving, taxi drivers’ insurance is built specifically for carrying paying passengers (also known as hire and reward insurance). This means that taxi cover is adapted for this specific usage. Taxi insurance can include public liability insurance to cover passengers. Unlike standard insurance, which may exclude business use, taxi insurance ensures you’re protected for every journey you take with paying customers. If you’re just starting out, check out our guide on how to become a taxi driver for a step-by-step overview. Important: Driving passengers for hire or reward without proper taxi insurance could invalidate your car insurance policy and result in legal penalties.
Types of Taxi Driver Insurance (and Who Needs What)
Taxi insurance isn’t one-size-fits-all. The type you need depends on how you take bookings, where you operate, and whether you’re self-employed or part of a taxi company.
- Private Hire Insurance (PHV)
Private hire cover is for drivers who only take pre-booked fares, like those working through platforms such as Uber, Bolt, or local private hire firms. You’re not allowed to pick passengers up off the street. You’ll need a valid Private Hire licence that allows you to operate within the area that you’re choosing to work, and your vehicle must meet council requirements too. Best for: App-based drivers or contract-based work.
- Public Hire Insurance (Hackney Carriage)
If you’re driving a black cab or operating in areas where passengers can hail you on the street or from a taxi rank, you’ll need Public Hire insurance. These vehicles are typically more visible, often with a “TAXI” sign, and must be licensed as Hackney Carriages. Best for: Traditional black cab drivers or city-based taxi services.
- Taxi Fleet Insurance
If you’re running a business with multiple vehicles, taxi fleet insurance can be more cost-effective and simpler to manage. It allows you to insure several taxis under one policy, with flexibility for different drivers and vehicles. Best for: Taxi firms or operators with several vehicles.
Cover Levels: What’s Included?
Just like regular car insurance, taxi driver insurance comes in three main levels of protection:
- Third Party Only — this covers damage and injury to third parties.
- Third Party, Fire & Theft — this covers you for everything Third Party Only does, as well as protection for your vehicle in the event of theft or fire.
- Comprehensive — offers the most protection, including everything covered by third party, fire and theft, plus cover for your vehicle in an at-fault accident.
Taxi policies sometimes include or offer public liability insurance as an extra, which protects you if a passenger is injured or their belongings are damaged during a trip. This sits alongside your Hire and Reward insurance (another term that can be applied to taxi cover), which is essential if you’re earning money from transporting people. If you’re not familiar with that term and what this specific type of insurance covers, we’ve explained it in full in our Hire and Reward insurance guide.
What Do You Need to Get Taxi Insurance?
When applying for taxi insurance, you’ll need to provide:
- A valid taxi licence (either Private Hire or Hackney Carriage)
- Identification and proof of address
- Your vehicle’s registration details and any modifications
- Details of your driving history and any previous claims
Why Does Taxi Insurance Cost More?
Taxi insurance generally costs more than private car insurance. That’s because:
- You’re on the road far more often, increasing the chance of accidents
- Working during evenings or in urban areas raises risk levels
- You carry members of the public, which brings added liability
A Working Example
Let’s say you’ve signed up as a private hire driver with Uber in Manchester. To drive legally and safely, you may need:
- A Private Hire licence valid in Manchester
- A licence for the vehicle being used for hire and reward
- PHV insurance to cover paid trips
- Optional add-ons like breakdown or legal cover, depending on your preferences
Your insurer may also consider how many hours you work, but it is worth noting that this is not a consideration for Acorn taxi insurance. They will also ask whether the car will be driven by anyone else.
Final Tips: Getting the Right Cover
Understand your role – Are you taking pre-booked jobs only, or also accepting street hails?
Know your location – London drivers must comply with TfL and get PCO cover.
Check your needs regularly – Notify your insurer if any of your details change, or if you need to change any aspects of your policy.
Need Help Finding the Right Taxi Driver Policy?
At Acorn Insurance, we’ve supported taxi drivers across the UK for over 40 years. Whether you’re starting out or renewing your policy, we can help you arrange your insurance policy. Talk to our team today for a taxi insurance quote.