Are you considering a career as a taxi driver in the UK? Or maybe you’ve already started and are wondering what insurance you need to operate legally and safely. Whatever your situation, it’s important to have the right insurance to protect yourself, your passengers, and your vehicle. In this article, we’ll take a deep dive into the different types of taxi insurance available in the UK, the legal requirements for taxi drivers, and some tips for finding affordable cover.

What is Taxi Insurance?

Taxi insurance is a specialist vehicle insurance policy that covers cars used for commercial hire. Unlike regular car insurance policies, which only cover social, domestic, and pleasure use, taxi insurance policies provide cover for both you and your passengers while you are operating as a taxi driver. Depending on the type of taxi you drive and where you operate, you will need a specific taxi insurance policy.

Legal Requirements for Taxi Drivers

If you drive a taxi for a living in the UK, it is a legal requirement to have a valid taxi insurance policy. The type of policy you need will depend on the type of taxi you drive and where you operate.

PCO Insurance: If you operate a black cab or mini-cab in London, you will need PCO insurance, which is issued by Transport for London (TfL).

Public Hire Taxi Insurance: This policy is for taxis that can be hailed down by customers on the street or picked up at a taxi rank. They can display a taxi sign, and this policy covers drivers to pick up customers without a booking.

Private Hire Taxi Insurance: This policy is for taxis that must be pre-booked in advance, including most minicabs and large multipurpose vehicles (MPV) like people carriers. This policy will not cover drivers to pick up customers without a booking.

Do Uber Drivers Need Insurance?

Private hire insurance is the most suitable cover for drivers working for Uber and its competitors. Although Uber does not define itself as a private hire company, insurers will see Uber drivers as operating a taxi service and will require them to have appropriate insurance.

Short-Term Taxi Insurance

If you work as a taxi driver on a part-time basis, short-term taxi insurance can be a good option. It offers flexible cover that can be cheaper than taking out an annual policy, and it typically offers cover for periods from one week upwards.

What to Look Out for When You Apply for Taxi Insurance

When you apply for taxi insurance, you will need to confirm your operating area. You may not be covered to work outside of this, so read the eligibility criteria carefully first to save a wasted application.

The level of cover you can get may be restricted by the area you work in. Some policies only offer fully comprehensive cover if you are registered in certain areas, so check your policy carefully.

What Cover Do You Need?

Taxi insurance offers the same three levels of protection as standard motor cover: fully comprehensive, third party, fire and theft, and third party only cover. However, there are other cover options specific to taxi insurance you should also consider, including:

Public Liability Insurance: This cover protects you if a customer suffers personal injury or property damage while in, entering, or leaving your taxi.

Personal Use Cover: This policy covers your taxi for day-to-day use when you are not working. Check with your local authority whether unregistered drivers can drive licensed taxis.

Unlimited Mileage: As a taxi driver, you will drive a large number of miles each year, so an unlimited mileage policy will ensure you will not be charged for driving too much.

Breakdown Cover: This policy will provide roadside assistance if your taxi breaks down when carrying passengers or between drop-offs and pick-ups.

Legal Cover: This policy covers the legal costs involved if you make a claim against someone or a claim is made.