Taxi insurance

Taxi insurance can be more expensive than car insurance because of the higher risks involved. By comparing quotes from multiple providers in one place, you can choose the level of cover that’s right for you and at a price to suit your budget

Why do I need taxi insurance?

Any vehicle on the road needs to have appropriate insurance, and taxis are no different. Whether you’re a full-time taxi driver or a part-time Uber driver, you’ll need taxi insurance to cover yourself, your vehicle and your passengers against potential claims.

Taxi insurance is designed to cover the additional risk you might face as a taxi driver. It helps to protect your livelihood and can stop you from being left out of pocket in the event of a claim.

Taxi drivers spend more time on the road at peak and sometimes unsociable times across busy urban areas. It’s also no surprise that taxi drivers will cover more miles annually than many other drivers.

All of this increases the chance of being involved in an accident and can therefore increase the cost of your insurance.

The size of your vehicle can also affect your insurance. Larger vehicles such as estates, MPVs and minibuses are often used as taxis. These vehicles are able to fit more passengers and luggage than other cars, however they also tend to be more expensive to insure.

The kind of policy you choose depends on what kind of taxi business you’re involved in. We can help you compare quotes for both public hire and private hire Insurance, however please note that we do not compare short-term taxi insurance or taxi fleet insurance.

Private hire

The majority of taxis on the road are actually minicabs or private hire vehicles (PHVs). PHV’s must be pre-booked and cannot pick up passengers from the street or taxi rank. If you drive a PHV or minicab you’ll need a private hire insurance policy. If you drive for Uber then you’ll more than likely need a private hire policy.

Public-hire

A public hire vehicle is sometimes known as a hackney carriage. These are traditional taxis, epitomised by the London black cab. They can pick up passengers from the street or wait at taxi ranks. You’ll need public hire taxi insurance if you drive one of these.

Who can drive the taxi?

You can add multiple taxi drivers to the same taxi policy. Just remember, the main driver should be the person who drives the taxi the most. Adding named drivers can increase or decrease the cost of your insurance depending on the driver and their driving history.

Public liability insurance

Public liability insurance can help to cover you against any claims brought by your passengers. Some policies will include this as standard, whereas others will offer it for an additional premium. Remember to check, and if you’re not sure contact your insurer.

When choosing a taxi insurance policy, think about whether it puts any limits on you – or your family’s – ability to use your car when you’re not working.

Accurately declare your personal mileage, which is the number of miles you cover whilst your car is not being used as a taxi.

Breakdown cover could be well worth thinking about, as any mechanical problems could leave your car off the road. Some providers may include it as standard, or as an optional extra. Or you might prefer to purchase it separately from a different provider.

Other policy add-ons worth considering include:

• Windscreen cover can help ensure your taxi isn’t kept out of action for longer than necessary.

• Legal expenses cover can help cover bills in the event of legal action from other road users.

Taxi insurance can be expensive, but there are things you can do to try to keep costs down:

To cut costs, consider:

• Shop around: there are lots of providers of taxi insurance, so comparing quotes for the cheapest or most suitable deal makes a lot of sense.

• Pick the right vehicle: generally, the less powerful your car is, the less it should cost to insure. If you’re about to buy a car to use as a taxi, check the likely insurance costs before buying.

• Your driving history: if you have a history of claim-free driving, this will count in your favour when it comes to taxi insurance costs. Some insurers may count no-claims bonus earnt on private insurance towards taxi insurance policies

• Drive safely: a clean driving history helps as claims or convictions on your license can increase the cost of your insurance premiums.

• Improve your security: the harder your car is to steal, the better your chances of lowering your costs. Investing in extra security measures such as immobilisers can pay off in the long run.