What is taxi insurance?
Taxi Insurance is a type of specialist cover for taxi drivers. Standard motor insurance is legally required for all vehicles on the road in the UK; however, if you are carrying passengers, you will need taxi insurance. The type of cover you need depends on your business. If you are picking up passengers without pre-booking, e.g. passengers hailing a cab or London black cabs, you will need public hire insurance. If your passengers are all pre-booked, private hire insurance would be suitable.
All businesses need to have the correct type of insurance, and this certainly applies to taxi drivers and taxi company owners.
How much is taxi insurance, and why is it more expensive than standard car insurance?
In general, taxi insurance prices are calculated based on levels of risk. As a taxi driver, you will be on the road for longer than your average driver, you will often be working on congested roads as well as driving during unsociable hours and your vehicle could be larger than a standard vehicle which will place it up a higher insurance group.
These factors can contribute to increasing the cost of taxi insurance policies. However, there are several ways that you can find cheaper taxi insurance.
How to find cheap taxi insurance and save money
Compare quotes: Quote Goat make this easy by giving you access to a leading panel of taxi insurance specialists.
Do not auto-renew: Compare taxi insurance quotes each year to see if you can make a saving or to ensure that you are not over-paying for your cover when you renew your current policy.
Lower insurance group: As mentioned above, the insurance group that your taxi belongs to can significantly impact insurance costs. When buying a taxi, please pay attention to the insurance group.
Avoid convictions: All types of convictions can push up insurance costs, both non-motoring and motoring, so it pays not to speed, use your mobile or commit any offence that you must declare to your insurance provider.
No claims discount: Building up a no-claims bonus can significantly reduce the cost of insuring a taxi.
What information is required to get a quote?
Getting a quote is quick, free & easy. The information you will need to hand includes:
Make and model of your taxi or registration plate, type of taxi, type of use and approximate vehicle value.
Level of cover, no-claims bonus details for your taxi and a private no-claims bonus if applicable. How long you’ve held your taxi badge, who will be driving and details of any claims or motoring convicting in the last 5 years.
Your name, address, date of birth & contact details.
Types of taxi cover
There are three main types of cover to choose from: policy-only, named driver and any driver.
As well as these three, you will also need to choose whether you have third party only, third party, fire & theft or fully comprehensive cover; just as you would for a standard motor insurance policy.
Typically the cheapest level of cover, with the cost increasing for each name that you add to the policy.
Insurance for a taxi driver purchasing their own policy covering just themselves.
As the name suggests will cover any driver using your taxi.
Third Party Only
The minimum level of insurance required by law, covers you for damage or injury to 3rd party property and 3rd parties if you are deemed to be at fault. Third party will not cover damage to your own taxi or yourself.
Third Party, Fire & Theft
Covers the above as well as the cost of replacing or repairing your taxi should it be stolen, damaged during an attempted theft or as a result of fire damage. It is important to note however that your claim may not be paid out unless you adhere to your policy’s terms which for example could include not paying out for theft if your vehicle was not properly secured.
The most complete level of cover which will usually everything above as well as damage to yourself or your taxi in the event of a claim, if it is your fault. Fully comprehensive policies may also include optional extras such as legal protection, which you can decide whether you require or not.
Taxi insurance extras
Legal cover, breakdown cover and public liability insurance are all optional extras that you may wish to include with your policy. We have listed a few other extras below to help you decide if you require any of them.
If you are unsure about whether you require any extras, the insurance provider you speak to will be able to advise.
Please note that including these covers in your policy may make it more expensive, but it could also save you money should the unexpected happen.
Damage to windscreen
Can often be incorporated into your policy, however it is also known to come as an optional extra.
It is possible to get protection in case you lose your license, paying you an income for a period once the license is taken away.
Assistance if you break down or your taxi will not start at your home.
Ongoing transfer cover
Assistance for passengers who need to carry on with their journey if your taxi breaks down.
Protecting you against claims made by members of the public for injury or damage.
Insurance to cover the costs of a breakdown.
Coverage for your own use of the taxi out of working hours can also be provided by some providers and is subject to your licensing authority’s rules.
Cover against legal fees and losses incurred as a result of an accident that was not your fault.
Taxi Insurance FAQs
How many taxis does fleet insurance require?
You can compare fleet insurance policies if you have two or more taxis.
Do I need public hire insurance or private hire insurance cover?
Public hire taxis pick up passengers without pre-booking, i.e. passengers that hail a cab. Private hire cover is for pre-booked journeys, including taxi booking services like Uber and other minicab services.
Do I need public liability insurance?
Public liability insurance is not a legal requirement. However, it could prove extremely important to protect you financially if the unexpected happens. It protects you if passengers in your care are involved in accidents or other unforeseen circumstances. It is required if you deal with the local authority or council contracts.
Can I use my taxi for personal use?
You can as long as your policy covers you for this, so you will need to check with the insurance provider. However, it is worth noting that if you want someone else, e.g. a partner, to drive your taxi for personal use, you may not be able due to restrictions put in place by your licensing authority.
Can my cover begin today?
In theory, yes, you will need to start by getting a quote. Your insurance provider will confirm when your policy begins.
Is there a limit on the number of drivers on my policy?
You can decide whether your policy covers just you, any number of named drivers or any driver.
Can I get taxi insurance as a young driver?
Yes, although your policy will likely be more expensive due to the increased risk younger drivers present.
I’m a convicted driver. Can I get a quote?
Yes! It is certainly possible to get taxi insurance as a convicted driver. However, please be aware that your cover may be more expensive because you will be seen as a greater risk to insure. The best way to find out is to get a quote now.