Taxi

Taxi insurance explained

A short guide to taxi insurance for private hire and public hire drivers: what it covers, from road risks to passenger liability, and why you need it.

Taxi insurance is a policy designed for individuals and businesses that run taxis or private hire vehicles. Because you are carrying paying passengers, a standard car policy won't cover you for this work. Taxi insurance covers the extra risks that come with it.

What taxi insurance can cover

Road risks

This covers the taxi while it is being driven on public roads. Depending on the level of cover, it may include accidental damage, theft and fire.

Public liability

This covers the business if a member of the public is injured, or their property is damaged, in connection with your taxi work, for example while you are helping someone with their luggage.

Passenger liability

This covers you if a passenger is injured or their belongings are damaged while they are in the taxi.

Personal accident

This pays out if the driver, or in some policies a passenger, is seriously injured or killed in an accident.

Different taxis, different requirements

The type and level of cover depends on the policy you choose and on how you work. Private hire vehicles, which must be pre-booked, are insured differently from public hire vehicles, which can be hailed in the street or picked up at a rank. Your licensing authority may also set its own requirements, such as a minimum level of cover or proof of insurance before it will issue or renew your licence.

It is worth looking at the excess, the limits and the exclusions as well as the price, so you can compare policies like for like.

Is taxi insurance a legal requirement?

In the UK, every vehicle used on a public road must be insured, and carrying passengers for payment needs hire and reward cover. Your local council (or Transport for London in London) will also expect to see valid insurance as part of licensing. It is worth checking your own council's rules.

You can find out more on our taxi insurance page. You fill in a short form and a specialist broker from our panel contacts you about cover.