Save time and money
Written by Michael Foote, Insurance Expert
Does Milestone Offer Taxi Insurance in the UK?
Milestone does not offer dedicated taxi insurance policies. The company focuses on personal motor insurance, learner driver cover, and non-standard car insurance products. Licensed taxi or private hire drivers must seek specialist cover from insurers who deal specifically with the taxi and private hire sector.
Taxi insurance requires specific expertise and underwriting knowledge due to increased risks associated with carrying paying passengers. Most mainstream insurers, including Milestone, lack the infrastructure to cover this specialist area of motor insurance.
Who Might Consider Milestone and Who Should Look Elsewhere
Licensed hackney and private hire drivers should not approach Milestone for cover. If you hold a valid taxi licence and carry fare-paying passengers, you must obtain a policy from a specialist taxi insurer.
Milestone may suit taxi drivers seeking personal car insurance for a vehicle not used for hire or reward. For example, if you own a separate vehicle for personal use outside taxi work, Milestone could potentially offer competitive rates depending on your driving history and circumstances.
Drivers needing specialist taxi cover should focus on insurers who understand licensing requirements, operating hours, and risk profiles associated with taxi and private hire work.
Common Reasons Taxi Drivers Are Declined or Pay More
While Milestone does not provide taxi insurance, understanding why taxi drivers often face higher premiums or declines helps when seeking cover:
- Lack of experience: New drivers or those with less than 12 months of taxi driving experience struggle to find affordable cover.
- Unspent convictions: Motoring convictions such as speeding, drink driving, or driving without insurance lead to higher premiums or refusals.
- Young age: Drivers under 25 face higher costs due to perceived risk, especially with limited experience.
- High-risk areas: Operating in urban areas with higher accident rates or crime levels increases premiums.
- Claims history: Multiple recent claims affect your ability to find competitive rates.
- Vehicle type: High-performance or modified vehicles cost more to insure and may be declined by some underwriters.
Understanding these factors helps you present yourself as lower risk to specialist insurers.
What to Check Before Buying Taxi Insurance
Before committing to a policy, check the following:
- Type of cover: Does the policy cover private hire, hackney carriage, or both? Ensure the cover matches your licence type.
- Operating area: Some policies restrict where you can work. Confirm your policy covers your entire operating radius.
- Number of drivers: If other drivers will use the vehicle, ensure they are named on the policy or that your cover includes any driver provisions.
- Public liability: Check the level of public liability cover included, especially for passenger transport.
- Breakdown cover: Not all policies include roadside assistance. Consider adding this if not included as standard.
- Legal expenses: Some policies offer legal expenses cover for disputes or claims.
- Policy excess: Compare compulsory and voluntary excess amounts across different insurers.
Reviewing these details prevents discovering gaps in your cover when making a claim.
Our Expert, Michael Foote, Says:
“Taxi insurance is a specialist area. Work with insurers who understand the unique risks of carrying fare-paying passengers. Mainstream insurers like Milestone simply do not cater to this market, so seek out brokers or insurers with proven track records in taxi and private hire cover. Compare multiple quotes and read policy wording carefully to avoid unpleasant surprises.”
Alternatives to Milestone for Taxi Insurance
If Milestone is not an option, several specialist insurers and brokers cater specifically to the taxi and private hire sector. These providers understand licensing requirements and offer tailored cover.
Consider approaching the following:
- Specialist taxi insurers: Companies such as Aviva, DCL, and Towergate offer dedicated taxi insurance products.
- Insurance brokers: Brokers search the market on your behalf and find competitive rates from multiple underwriters.
- Comparison sites: Use comparison platforms to quickly compare quotes from specialist taxi insurers.
Each provider has different underwriting criteria, so obtain multiple quotes to find the best deal.
Frequently Asked Questions
Does Milestone offer taxi insurance?
No, Milestone does not offer taxi insurance. They specialise in personal motor insurance and do not provide cover for vehicles used for hire or reward.
Can I use my personal Milestone policy for part-time taxi work?
No, a personal motor insurance policy will not cover you for taxi or private hire work. You must obtain specialist taxi insurance to be legally covered when carrying fare-paying passengers.
What type of insurers offer taxi cover?
Specialist taxi insurers and brokers who focus on the private hire and hackney carriage market are your best options. These providers understand the unique risks and licensing requirements.
How much does taxi insurance cost?
Taxi insurance premiums vary widely depending on age, experience, location, vehicle type, and claims history. Compare multiple quotes to find the most competitive rate.
Can I insure a taxi if I have previous convictions?
Yes, but it may be more difficult and expensive. Some specialist insurers cater to drivers with convictions, though premiums will be higher. Disclose all convictions to avoid policy invalidation.
Do I need public liability insurance as a taxi driver?
Most taxi insurance policies include public liability cover as standard. This protects you if a passenger is injured or their property is damaged while in your vehicle.
Can I add other drivers to my taxi insurance policy?
Yes, most policies allow you to add named drivers or opt for any driver cover, though this will increase your premium. Ensure all drivers meet the insurer’s criteria.
What is the difference between private hire and hackney carriage insurance?
Private hire insurance covers vehicles that must be pre-booked, while hackney carriage insurance covers taxis that can be hailed on the street or wait at taxi ranks. Ensure your policy matches your licence type.
Can I get short-term taxi insurance?
Yes, some insurers offer temporary or short-term taxi insurance, which can be useful if you only drive occasionally or are covering another driver.
How do I find the cheapest taxi insurance?
Compare quotes from multiple specialist insurers and brokers, maintain a clean driving record, consider a higher voluntary excess, and ensure your vehicle meets licensing standards.
Get a Quote Today
If you are looking for specialist taxi insurance, QuoteGoat can help you compare quotes from leading insurers in the market. Use the quote button at the bottom of the screen to get started and find the cover that suits your needs and budget.