SimplyQuoteInsightsTaxi InsuranceWhat is rideshare insurance?

What is rideshare insurance?

Rideshare insurance, also called private hire insurance or rideshare endorsement, is a type of taxi insurance policy for drivers who use their own car to transport pre-booked passengers in exchange for cash. These paying customers typically book taxi services in advance via transportation network companies like Bolt and Uber or other private channels like a hotel concierge.

“Rideshare insurance” is more commonly used in the US, while “private hire insurance” is the term we mostly use in the UK. Essentially, they are the same and are a legal requirement for all licensed taxi drivers operating in the United Kingdom.

Note: This type of commercial car insurance cover does not apply to public-hire taxis that pick up hailed passengers from taxi ranks or the side of the street. These taxi services require a different kind of commercial insurance policy: Public-hire insurance or black cab insurance.

Why do you need rideshare insurance in the UK?

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What are the benefits of rideshare insurance?

What does rideshare insurance cover?

What levels of rideshare insurance are available in the UK?

There are three levels of rideshare insurance cover to choose from in the UK:

Third-party only (TPO)

  • The lowest level of cover.
  • The bare minimum required by UK law.
  • Covers compensation and liability costs for third-party claims should you injure someone or damage their property while on duty (including passengers).
  • Does not cover drivers or their personal vehicles.

Third-party, fire and theft (TPFT)

  • Mid-level cover.
  • Includes basic TPO.
  • Will pay out if your vehicle is damaged by fire or stolen.
  • Does not cover drivers or their personal vehicles

Comprehensive cover

  • Highest level of cover.
  • Includes TPO and TPFT.
  • Covers drivers’ medical expenses and vehicle damage costs.
  • Generally includes SD&P.
  • May include extra benefits such as breakdown, windscreen and lost key cover.

Note: Some insurance providers may only offer TPO and fully comprehensive policies.

Can I add extra cover to my policy?

Yes, you can! These include:

  • Breakdown cover and roadside assist
  • Courtesy car
  • Windscreen cover
  • No-claims bonus protection
  • Misfuelling
  • Lost key cover
  • Goods in transit
  • Loss of earnings/income
  • EU cover
  • Named driver
  • Celebrity carriage cover

How much does rideshare insurance cost?

Final thoughts

Frequently Asked Questions

What rideshare companies offer insurance in the UK?

Uber and Bolt offer liability cover for drivers and passengers. However, the insured amounts are generally quite low. This is where rideshare cover comes in to fill the gap between what the company and your personal insurance provide.

Can I operate a rideshare business without insurance?

No, it’s against the law to carry passengers for hire and reward purposes without the correct insurance in place in the UK.

What vehicle can I use for private hire taxi services in the UK?

You can use any personal vehicle as a private hire taxi in the UK, as long as it meets the rideshare company’s criteria and has a valid MOT certificate.

Is rideshare insurance worth it?

Yes, rideshare cover is worth it. Not only is it a legal requirement but it saves you from dipping into your pocket should third parties claim against you for injuries or property damage.

What’s the difference between private hire and public hire taxi insurance?

Both are a type of taxi insurance. However, they do differ:

  • Private hire insurance (or rideshare cover) is specifically designed for taxi drivers who pick up pre-booked passengers via ride-hailing apps like Ola, Uber or Bolt.
  • Public hire insurance is aimed towards taxi drivers who pick up passengers who flag them down at taxi ranks or on the curb (e.g. black cabs).