Taxi Insurance

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There are almost 300,000 licensed taxis and personal hire vehicles in the UK, and an equivalent number of taxi journeys happen each day in the capital alone. Each driver who operates a taxi, whether that's a black cab or hackney carriage, minicab or personal vehicle, taxi-bus or people carrier, needs to take out a special kind of business car insurance called taxi insurance.

Insurance is designed to cover taxi drivers and their vehicles whilst they work, taxi insurance protects livelihoods too. If your vehicle is involved in an incident on the roads, you protect yourself financially when you have a good insurance policy in place.

Finding the right taxi cover is now easier than ever. Using our online taxi quotation tool, you can gain access to a wide range of insurance policies for taxi drivers that are tailored to your needs, all within a matter of minutes. Compare insurance quotes to find the best value for money and ensure you get a level of coverage that sets your mind at ease.


Get a taxi insurance quote

If you'll be working as a taxi driver, standard car insurance won't give you the cover you need.

Instead, taxi insurance, a type of business car insurance, enables you to operate your vehicle for commercial use. You'll see the term 'hire or reward' on your insurance policy documents, and this means you are legally allowed to carry people and goods in your vehicle in return for payment.

There are two common types of taxi insurance:


Public hire insurance

Recognisable around the world, public hire vehicles that require public hire taxi insurance include London's black cabs and hackney carriages. Public hire vehicles also cover any type of taxi cab that can pick up passengers at taxi ranks or be hailed down on the street, as well as pre-booked.


Private hire insurance

You can use your private vehicle as a taxi to carry passengers if you take out private hire insurance. This applies to people driving for ride-hailing service apps like Uber, and operating minicabs. If you are driving a private hire vehicle, you can't pick up passengers from the street. Instead, all journeys must be booked in advance. This is the most popular insurance option for new taxi drivers.

When comparing insurance policies, you might also come across:

London taxi PCO insurance

The Public Carriage Office, also known as the PCO, is the division of Transport for London that licenses black taxi cabs and minicabs. You may come across London PCO insurance, which has been created specifically for London-based public hire taxi vehicles.

Black cab taxi insurance

Whilst London PCO insurance covers driving in London, it won't cover driving outside of this area. However, black cabs can be found in major cities all over the UK. Look for black cab insurance more generally for public hire insurance that covers driving inside or outside of London.

Uber insurance

If you will be driving on behalf of a taxi-hailing app like Uber, Gett or Ola, you can search for specific terms like Uber insurance to cover you for your work. These are special types of private hire insurance that may be tailored to suit flexible work reflecting the gig economy.

Minicab insurance

You might find policies specifically created for minicab insurance, providing private hire taxi cover and enabling you to legally transport passengers in your minicab for pre-booked journeys.


Types of taxi insurance cover

Having a basic level of taxi insurance is a legal requirement, but getting a more comprehensive insurance policy can reassure you that you are sufficiently protected if you and your vehicle are involved in an incident.

Similar to standard car insurance, there are three main levels of cover. These are:
Third-party only insurance
Third-party, fire and theft
Comprehensive insurance


Third-party only insurance

The most basic level of insurance cover and the legal minimum. If you were involved in an accident that was deemed to be your fault, this insurance policy would cover the cost of compensation if you injured other people or caused damage to property. However, it would not cover your injuries, damage to your taxi, or any other financial help. Worth bearing in mind when you get an insurance quote for your taxi.


Third-party, fire and theft

Provides the same basic level of cover as third-party only, with additional insurance cover if your car is stolen or damaged by fire. You would not receive compensation if there was any damage to you or your taxi during a road traffic accident, though.


Comprehensive insurance

This level of insurance builds on from third-party, fire and theft, but provides additional protection. It covers you for damage to your taxi, and some policies compensate for medical treatment and accidental damage. Sometimes called fully comprehensive insurance or fully comp, this is the highest level of cover, so there is a common expectation that it is also the most expensive. However, you might be pleasantly surprised to discover how much value for money a comprehensive insurance policy can offer for your business and your taxi. It's worth comparing all levels of cover to ensure you choose the right one for you. This is also the most popular level of insurance that taxi drivers choose for their car.


Taxi Insurance: Optional extras

Insurance for personal use of your taxi

When you look further into the policies, you may find that insurance for your taxi only covers incidents whilst your car is being used as a commercial 'hire or reward' vehicle. If you use the same car for personal use without checking that your taxi insurance quote covers this, you may have unintentionally invalidated your insurance. You can usually add coverage for personal use on top of your taxi insurance, or take out a separate insurance policy to ensure you won't be caught short when getting a quote.

Public liability insurance cover

Your work as a taxi driver involves interacting with the public daily, so some drivers choose to take out additional public liability insurance. This covers you and your car in case a passenger who was injured or had their belongings damaged during a journey with you tries to claim against you. It also covers you for legal costs, should they arise. Public liability insurance is not a legal requirement for taxi drivers but offers reassurance and protection for worst-case scenarios when dealing with customers. It's unlikely that your taxi insurance quote will include public liability cover as standard, but you will either be able to include it as an extra feature or take out a separate insurance policy.

Telematics cab insurance

Installing a black box into your car as a tracking device allows your taxi insurance provider to monitor your driving. This is an opportunity for you to demonstrate you are a safe and responsible driver, but it also opens you up to scrutiny, so you should strictly adhere to speed limits and always drive your car sensibly. With telematics insurance, your insurance firm can adjust your premiums according to your driving habits, rewarding you for driving safely with cheaper taxi insurance deals. Whilst black boxes are more commonly used by younger drivers with less experience, they can be used by anyone and could be particularly helpful for newly qualified taxi drivers to help them get cheaper insurance.

Other extras you may wish to add to your insurance policy include:

  • Breakdown cover
  • Legal cover
  • Loss of licence cover
  • Windscreen cover

The cost of taxi insurance

The most obvious thing that separates taxi insurance from domestic car insurance is cost. It is usually far more expensive to insure your car for taxi driving than for personal use, in some cases doubling the price, or more. Comparing quotes is the smartest way to save money on insurance for your taxi.

As taxi drivers are on the road for long hours and covering many miles, taxi insurance firms view them as high risk. The likelihood of anyone being involved in a car accident increases with more time spent on the roads, making it inevitable that taxi drivers are perceived as a group that is likely to be in an accident and make an insurance claim.

On top of this, taxicab drivers regularly drive their car through heavily built-up city centres, at night or in adverse weather conditions, and when they are tired or with possible distractions from their passengers. In response to this, insurers usually raise the insurance costs for this group.

It is impossible to give an estimate for the cost of taxi insurance because so many variables influence the quotes that insurers calculate, and each insurance firm will work slightly differently.

Whilst there is no simple answer to the question 'How much does taxi insurance cost?' there are common factors that will affect the insurance quote you are offered. These include:

Your personal driving and taxi driving history

  • How long you've held your taxi licence
  • Driving history and points on your licence
  • Insurance claim history or no claims bonus
  • How long you've been working as a taxi driver
  • Whether your taxi licence is for private hire or public hire

Your age and location affects your insurance

  • Your age
  • Where you live
  • Where you will park your taxi after work
  • The area you will cover whilst working in your taxi

Your taxi

  • The make, model and age of your vehicle
  • Whether your car was imported
  • Modifications made to your car
  • Whether you have a tracker device installed

How to get cheaper taxi insurance

Although there are a variety of factors at play which can raise the price of taxi cover, this equally gives you the power to push down your insurance premiums. Here are some tips for getting a cheaper taxi insurance quote:

Review taxi insurance quotes regularly

The best way to find the cheapest possible taxi insurance is by comparing insurance quotes online. Using the free online quote comparison tool available on, you can input your details and we'll automatically generate the most competitive insurance deals from trusted insurers. The results are tailored to suit your needs, with relevant information about each insurance policy and provider to make your choice easier than ever when you start a new quote.

Drive your taxi sensibly

As a taxi driver, you have a bigger obligation than the average motorist to drive responsibly. On top of that, having a clean licence and being able to demonstrate that you adhere to road safety rules by driving sensibly and obeying speed limits will lower your taxi insurance quotes. By giving your insurance provider the confidence that you are trustworthy behind the wheel, you will benefit financially.

Choose your taxi wisely for cheap insurance

Top-of-the-range cars are comfortable and enjoyable to drive, but if you choose a high-end, imported or modified vehicle for your taxi, it's likely that your taxi insurance premium will be significantly higher. This is, in part, because the cost to replace these parts is higher if you are involved in an accident. Selecting a reliable, cheaper model to use as your taxi could benefit you by lowering the cost of your insurance.

Maintain and service your taxi

It's smart to take good care of your vehicle, especially as your taxi cab is more than a vehicle, but also a means to work. If you service your vehicle regularly at the garage, you will mitigate the risk of breaking down or experiencing a costly mechanical fault. Even with breakdown cover in place, it's better to avoid any issues with maintenance and frequent services. This also saves you money on insurance.

Choose private hire taxi cover if possible

If you have the choice between private hire or public hire taxi insurance, you'll usually find that private hire insurance is cheaper. The reason for this is that public hire vehicles tend to work in city centres, where road accidents are more likely to happen. However, some vehicles must use public hire insurance, such as black cabs. Make sure you choose the correct insurance cover for your needs.

Install CCTV in your taxi

Some taxi insurance providers see CCTV as a deterrent against car theft or vandalism. CCTV can also mitigate the risk of false third-party claims made against your car. Additionally, some taxi drivers may have a legal obligation to install CCTV into their vehicles, due to regulations from their employer or local area. Improving the security of your car will lower your insurance.

Switch insurance policy at the right time

Some analysts think you should avoid renewing your taxi insurance at the last minute. On the other hand, research suggests insurance quotes may be higher if you renew too early. Usually, the best time to renew or switch your taxi insurance policy is three or four weeks before your insurance is up, or the same period of time before your policy is due to begin if this is the first time you're taking out taxi insurance.

Wait until you're over 25 for taxi insurance

Almost all insurance providers consider age and experience to be factors that influence how risky you are seen as a driver. Younger or less experienced drivers will usually be charged more because insurers expect that they will be more likely to be in an accident and make a claim. For taxi insurance, this goes one step further and insurance providers usually won't insure anyone under 25. Some specialist taxi insurance firms might provide cover for ages as low as 21, but it's likely to be very expensive. Worth considering when you get a quote.

Consider covering areas outside of London

Insurance for taxicabs tends to cost more if you're based in a busy, built-up city with higher crime rates. Therefore, although there is a need for London cabbies, you will probably find that the UK's capital is the most expensive zone to cover with your insurance. If you are able to cover another city outside of London, you will probably find this has comparatively lower taxi insurance costs.

Taxi Insurance: Pay annually

Many taxi policies are now available for temporary or flexible car insurance, which suits the gig economy and allows the likes of Uber drivers to manage their insurance cover to reflect their working patterns. However, if you'll be driving your cab full time and can afford to pay for your insurance up-front, it's more cost-effective to pay annually than monthly or weekly. This is more convenient for insurance providers and they will reward you with potentially hundreds of pounds off your bill.

Maintain your insurance no-claims bonus

Depending on the insurance provider you choose, you may be able to use your personal no-claims bonus to positively impact on your taxi insurance quotes. This would involve transferring your no-claims discount from your personal insurance to your new taxi insurance, allowing you to take advantage of your safe and sensible driving history to lower an otherwise expensive insurance policy.

Install a black box in your taxi to lower insurance

Adding a tracking device to your vehicle allows your insurer to monitor your driving and gives you the opportunity to show you drive sensibly. This reassures your insurer that you are unlikely to be in a collision or make a claim. Your taxi insurance provider will adjust your premiums accordingly, and you may only need to use a telematics device for one year to prove you handle your vehicle responsibly. Younger and/or inexperienced drivers can get cheaper insurance through this option.


Taxi Insurance: Regulations, exclusions and considerations

Wearing seatbelts when driving your taxi

Licensed taxi drivers who are plying for hire or carrying passengers have no legal obligation to wear a seatbelt. Although you are exempt as the driver, your passengers are not. Legally, it is your passenger's responsibility to wear their seatbelt, so your taxi insurance won't be invalid if your passengers don't comply, but it's still important to encourage the use of seatbelts.

Insuring a minibus as a taxi vs. a car

If you're interested in taking out insurance for a taxibus or taxi minibus, this process follows the same processes as comparing or taking out a new policy for taxi insurance. Premiums may be higher if your car has been modified or if it's very expensive and therefore, would be very costly for the insurer to fix or provide replacement parts for. This will no doubt raise your insurance significantly.

Accessibility taxi car modifications

Some modifications are necessary to ensure your vehicle is wheelchair accessible, such as installing a disability lift or wheelchair ramp. These modifications may still cause your taxi insurance premiums to rise, but there are regulations in some parts of the UK making it a legal requirement for vehicles to be accessible for passengers who have mobility issues or disabilities. Ensure you disclose any modifications to your insurance company.

Employer-provided taxi insurance

Some taxi companies will provide their staff with taxi insurance, but this depends largely on the driver's relationship with the company. If it's a firm that owns the car, it's likely they will have taken out fleet insurance. However, if you're classed as self-employed and drive your own car on behalf of the brand, it's unlikely they'll cover your insurance. It's a good idea to speak openly with the company you're representing to ensure you're on the same page. Some firms may even be willing to cover partial insurance costs.

Other taxi insurance exclusions

Exact terms and conditions vary each insurance provider, but generally, insurance policies don't cover taxis:

  • when driven by an unauthorised driver,
  • when driven by someone aged under 25,
  • when the vehicle has been driven unsafely, for example, due to the use of drugs or alcohol,
  • if the taxi was stolen after the keys were left inside, or
  • if the taxi operates outside of the region the insurance policy covers.

Frequently asked questions (FAQs)

Whether your policy enforces a mileage limit depends on the taxi insurance firm you decide to use. Some insurance companies impose annual limits on mileage but other insurance firms have no limitations on the number of miles you can cover in your car. However, even if there is no limit on mileage, there may be a limit on the hours you can work per day. If you’re unsure how this effects your car usage, double check with your insurance provider.

These limitations are designed to reduce the likelihood of you and your car getting into an accident on the roads, presumably linked to tiredness, by encouraging you not to overwork. This also has the added effect of helping you get cheaper insurance deals. Reducing the chances of accidents, in turn, reduces the risk for the insurer. Check the terms and conditions to ensure you know all limits before you purchase your taxi insurance.

In addition to the minimum age restrictions most taxi insurance providers enforce, there will often be a restriction relating to driving experience too. Usually, you can't start driving taxis until you've built up some experience behind the wheel, so it's unrealistic to presume you'll be working as a taxi driver straight after passing your driving test. If you do pursue this option straight away, remember that your insurance is likely to be sky high.

Most insurance firms ask that you have at least 12 months of driving experience after getting your driving license before offering you an insurance policy. The logic behind this is to keep drivers with relatively little driving experience from carrying passengers in taxi cabs because they have a higher risk of getting into a collision. If you did find a taxi insurance policy suitable for inexperienced drivers, it is likely to be prohibitively expensive.

It's not possible to name a single insurance company as the best insurance provider for taxi insurance because, the truth is, there's isn't one. Insurance policies will suit different people with distinct circumstances and companies cater to diverse groups with various needs. A range of variables determine the type and level of cover you will be offered by and insurance company and you'll want to ensure the policy meets your needs.

Our comparison tool will always show you the best deals, even if we aren't partnering with those companies. We are 100% impartial and independent so you can be confident that the results we generate will always reflect the best value for money for your taxi insurance. You won't be offered a better deal if you go directly to the insurance providers, and it costs nothing extra to secure your policy through Utility Saving Expert. Compare the best insurance deals today.

It's difficult to find a definitive list of insurance providers, as lists can become inaccurate quickly. With hundreds of insurance providers in the UK, it would take a long time to search through each company individually, working your way through the list. Instead, you can search for taxi insurance deals using and we'll rapidly scan for relevant quotes, so you find the cheapest deals without needing to do the digging yourself. This will help you get the best quote for you and your car.