What’s one thing you couldn’t do your job without? Your cab might be the obvious answer, or even your taxi badge – but what about taxi insurance?
It may not be the first thing that comes to mind, but it’s just as essential. Not only is it a legal requirement, but it also protects your vehicle. Your vehicle is how you make a living, so making sure it’s properly covered really does matter.
In this guide, we’ll break down the basics of taxi insurance, including the types of cover available, what affects your premiums, and how you can get a quote.
What is taxi insurance?
Taxi insurance is a specialised commercial motor policy designed for drivers who transport passengers in exchange for payment.
Whether you’re self-employed, working at a local base, or accepting jobs through ride-hailing apps such as Uber and Bolt, you’ll need taxi insurance to cover you while you’re working.
It’s important to note that standard car insurance will not cover you to carry passengers for hire and reward. If you drive a taxi for a living, taxi insurance is coverage that’s made with your job in mind.
Types of taxi insurance
There are three main types of taxi insurance:
Public hire taxi insurance is for taxis (such as Hackney carriages or black cabs) that can be hailed on the street and picked up at a rank without any prior bookings.
Private hire insurance is for drivers who only carry out pre-booked journeys – think minicabs, local bases, and drivers who use ride-hailing apps.
If you run a business that operates multiple cabs, taxi fleet insurance could be a smart choice for simplifying your admin by covering your vehicles under one policy.
💡 Read more about taxi fleet insurance here: The benefits of taxi fleet insurance.
Levels of cover
There are three levels of cover for taxi insurance:
- Third party only (TPO) is the legal minimum level of cover required. It offers protection if you cause damage to someone else’s vehicle or injure a third party.
- Third party, fire & theft (TPFT) includes everything in third party only cover and provides additional protection if your vehicle is damaged by fire or stolen.
- Comprehensive includes everything in TPO and TPFT and also offers protection if your own vehicle gets damaged in an accident.
Comprehensive taxi insurance is often most recommended level of cover as it offers the highest level of protection and covers you in most accident scenarios.
Additional cover
You can also add additional cover or take out additional policies alongside your core taxi insurance cover for extra protection.
Some of these policies could be included as standard (depending on the insurance provider), but typically, most of them will need to be purchased at a further cost.
- Breakdown cover – protects you if your taxi breaks down by providing roadside assistance and vehicle recovery.
- Public liability – covers you for third party claims for injury or property damage – for example, if a passenger becomes injured after tripping over luggage you’ve unloaded.
- Excess protection – reimburses you for any compulsory and voluntary excess you pay in the event of a claim (up to a specified limit).
- Legal expenses – helps cover legal costs from non-fault claims, protecting you from potentially expensive legal fees.
- Windscreen cover – covers the cost of repairs to your windscreen from chips, cracks, or shattering.
- Vehicle contents – protects your personal belongings if they’re stolen or damaged while in your taxi (this may exclude overnight cover depending on the insurance provider).
How much does taxi insurance cost?
It’s difficult to provide an exact figure, as taxi insurance premiums can vary significantly across the UK, with each insurer using its own method to calculate costs.
When calculating premiums, insurance providers will consider:
- The type of vehicle you drive.
- Your age and experience as a taxi driver.
- The areas you work in.
- Your history of claims and motor convictions.
How can I get cheaper taxi insurance?
Depending on your insurance provider, you may be able to take certain steps to reduce the cost of your taxi insurance.
The following can usually lead to lower premiums:
- Building up your no claims discount.
- Installing security and anti-theft devices in your vehicle.
- Parking your vehicle on a drive or a locked garage.
- Including a voluntary excess if you can afford it.
How do I get a quote?
You can either get a taxi insurance quote directly from an insurance provider or through a specialist broker such as Patons Insurance.
Benefits of using a broker
Working with a broker for your taxi insurance could save you both time and money.
At Patons, we compare quotes on your behalf to find you our best policy, at our best price.
Our specialist sales and service teams have in-depth knowledge of the taxi insurance market, enabling us to provide you with tailored advice and secure cover that suits your exact needs.
Looking for a fast, free and competitive quote? We can help. Start by filling the quote form on our website or call us on 0333 015 6886.
