Private Hire vs Public Hire Taxi Insurance: What's the Difference?
If you drive a taxi in the UK, the type of cover you need depends on the licence your council has issued. Here's how private hire and public hire insurance differ — and how to tell which one you need.
Public hire insurance is for vehicles that can be hailed in the street or wait at ranks (hackney carriages and black cabs). Private hire insurance is for vehicles that can only be pre-booked through a licensed operator (minicabs, app bookings such as Uber). Your council licence decides which one you must have.
Public hire
Can be hailed on the street and wait at taxi ranks. Typically hackney carriages and black cabs. Held under a hackney carriage licence.
Private hire
Must be booked in advance through a licensed operator. Minicabs and app journeys such as Uber. Held under a private hire licence.
How the two types of cover compare
| Public hire | Private hire | |
|---|---|---|
| How fares are accepted | Street hails, taxi ranks, and pre-booked | Pre-booked only, via a licensed operator |
| Typical vehicles | Hackney carriages, black cabs | Minicabs, saloons, app-based cars |
| Licence required | Hackney carriage licence | Private hire licence |
| Examples | City-centre black cabs, rank taxis | Uber, Bolt, local minicab firms |
| Insurance basis | Public hire taxi insurance (hire & reward) | Private hire taxi insurance (hire & reward) |
Both are forms of hire and reward cover, which you must have whenever you carry paying passengers — standard car insurance does not cover this and would be invalid for taxi work. Insurers price the two differently because the risk profiles differ: public hire vehicles often work busy city centres and accept street hails, while private hire work is pre-booked.
Which one do I need?
It comes down to one thing: the licence your local council has issued you.
- If you hold a hackney carriage licence (you can accept street hails and use ranks) → you need public hire insurance.
- If you hold a private hire licence (you can only take pre-booked journeys) → you need private hire insurance.
- If you're not sure, your licence document states the type. Driving on the wrong cover can leave you uninsured.
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Get my taxi quote →Frequently asked questions
What is the difference between private hire and public hire taxi insurance?
Public hire insurance covers vehicles licensed to be hailed in the street or to wait at taxi ranks, such as hackney carriages and black cabs. Private hire insurance covers vehicles that can only be booked in advance through a licensed operator, such as minicabs and app-based bookings. The cover you need is determined by the type of taxi licence your local council has issued.
Can I use private hire insurance to drive for Uber in the UK?
Yes. Uber and similar app journeys are pre-booked through a licensed operator, so they fall under private hire. You'll need a private hire taxi insurance policy that includes hire and reward cover, along with the correct private hire licence from your council.
Is taxi insurance more expensive than standard car insurance?
Taxi insurance usually costs more than standard car insurance because it includes hire and reward cover and reflects higher mileage and commercial use. The exact price depends on your vehicle, licensing area, driving and claims history, and the level of cover you choose, so the only way to know your price is to get a quote.
Do I need public liability insurance as a taxi driver?
Public liability cover isn't always a legal requirement, but many taxi and private hire drivers add it because it protects against claims from passengers or members of the public who are injured or whose property is damaged. Some councils and operators require it as a condition of licensing.
How do I know whether I need private hire or public hire cover?
Check the taxi licence issued by your local council. A hackney carriage licence means you can accept street hails and use ranks, so you need public hire insurance. A private hire licence means you can only take pre-booked journeys, so you need private hire insurance.