Taxi
Private hire insurance explained: what PHV drivers need to know
What PHV drivers need to know about private hire insurance in the UK: what it is, what it covers, app-based work, what affects the cost and tips.
If you drive a private hire vehicle (PHV) in the UK, whether through an app, for a local minicab firm or independently, you need specialist private hire insurance. Standard car insurance will not cover you once you are carrying paying passengers.
What is private hire insurance?
Private hire insurance is for drivers who carry pre-booked passengers for payment. Unlike black cabs, private hire vehicles cannot be hailed in the street or use taxi ranks. Your PHV licence and your insurance need to match: if they don't, your cover may not be valid.
What does private hire insurance cover?
Depending on the policy, cover can include:
- Passenger and third party liability: claims from passengers or other people injured in an accident.
- Comprehensive vehicle cover: damage to your own car, as well as fire and theft.
- Breakdown cover: useful when your income depends on your car being on the road. See breakdown cover.
- Legal expenses cover: help with legal costs, for example to recover losses after an accident that was not your fault.
Private hire insurance and app-based platforms
Some ride-hailing platforms arrange certain cover for drivers during trips. What they provide, and when it applies, varies, and it may not cover the time you spend waiting for a booking. Check exactly what your platform provides and make sure you have your own policy to cover any gaps. Your licensing authority (in London, TfL) will also have its own insurance requirements.
What affects the cost of PHV insurance?
- Hours driven: more time on the road means more risk.
- Location: busy city areas tend to have higher accident and theft rates.
- Vehicle type: larger and more valuable vehicles usually cost more to insure.
- Claims history: a clean record builds a no-claims discount over time.
Tips on your private hire insurance premium
- Shop around with specialist brokers at renewal.
- Build up a no-claims history.
- Fit a dashcam, which can help settle disputed claims.
- Pay annually if you can, to avoid interest on monthly payment plans.
Getting private hire insurance quotes through Kompare
Kompare works with specialist taxi and private hire brokers. You fill in a short form and a specialist, FCA-authorised broker from our panel contacts you about quotes. Find out more about taxi insurance, or fleet insurance if you run more than one vehicle.