SimplyQuoteInsightsTaxi InsuranceWhat is rideshare insurance?

What is rideshare insurance?

Author image Chris Richards
8 mins

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.

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What is rideshare insurance? Why do you need rideshare insurance in the UK? What are the benefits of rideshare insurance? What does rideshare insurance cover? What levels of rideshare insurance are available in the UK? How much does rideshare insurance cost? Final thoughts Frequently asked questions

Why do you need rideshare insurance in the UK?

It’s a legal requirement to have the appropriate car insurance to drive on UK roads, whether it’s for personal or business purposes.

Because rideshare drivers can use their personal vehicles to carry passengers (for business purposes), rideshare insurance covers the gap between personal auto insurance and the difference the rideshare platform needs. This means you’ll still need standard, domestic and pleasure (SD&P) insurance to drive your vehicle when off-duty in the UK.

Your standard personal car insurance policy won’t cover you when you’re out and about transporting passengers from A to B.

Rideshare insurance protects the driver, passengers and other third parties in the event of an accident. It covers the third-party damage claims, personal injuries and other liabilities – more on this further down.

Who needs rideshare insurance?

You need rideshare insurance if you use your personal car to pick up pre-booked passengers. This applies to casual, part- and full-time drivers, regardless of whether you work independently or are affiliated with ride-hailing companies like Uber.

Other types of private hire taxi services include:

  • Private tour guides
  • Pre-booked airport shuttles
  • Private taxis via hotel concierge
  • Privately booked nursing home, sports club or school transportation

What do I need for rideshare insurance in the UK?

  • 21+ years old
  • A four-door vehicle not older than 10 years
  • Valid UK/EU driving licence
  • Able to legally live and work in the United Kingdom
  • Cleaning driving record
  • Private hire vehicle (PHV) license – also called a PCO licence

Bonus read: How To Become An Uber Driver In The UK

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What are the benefits of rideshare insurance?

Let’s take a look at a few rideshare insurance advantages:

Fills cover gaps

Rideshare insurance protects all stages of your rideshare work, including when you are logged in and waiting for a ride request.

Drivers who choose to work with ridesharing services like Uber and Bolt might think they’re covered by the company’s limited commercial car insurance policy. However, these policies often have significant cover gaps (with lower cover amounts), which may not be enough in the event of an accident.

Vehicle protection

Rideshare insurance can cover damage to your vehicle, up to its actual cash value (with a deductible), even if you are at fault in an accident. However, this depends on your comprehensive and collision cover on your personal auto policy.

Liability insurance

For ridesharing apps like Uber, it covers various liabilities such as medical expenses, death, permanent disability, hospital bills and personal injuries for drivers, passengers and other third parties. This ensures you are not held liable for these expenses out of pocket.

Flexibility

Casual and part-time rideshare drivers can opt for pay-as-you-go taxi insurance for increased flexibility and convenience. This allows you to only pay for the insurance cover you need when you need it. Full-time rideshare drivers usually benefit from monthly or annual policies.

What does rideshare insurance cover?

The exact cover depends on your insurance provider and the level of insurance you opt for. Rideshare insurance is quite similar to a personal car insurance policy, protecting the driver, passengers and third-party persons in the event of a collision.

Comprehensive policies typically cover:

  • Personal car insurance
  • Third-party liability
  • Passenger liability
  • Vehicle damage/vehicle repairs (to your and third-party cars)
  • Legal expenses
  • Loss of earnings

Be sure to read the policy documents carefully to know exactly what is and isn’t covered.

Are there any exclusions?

  • Driving without the correct insurance (or licence!)
  • Driving with a suspended/expired licence
  • Driving under the influence of alcohol or drugs
  • Normal wear and tear on your vehicle (e.g. brake pads, tyres)
  • Personal belongings – including passenger possessions
  • Goods in transit
  • Unnamed/uninsured drivers

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?

Private hire taxi insurance costs approximately £1,600 – £1,800 per year. However, the final price tag is based on several criteria such as the age of the driver, your location and working schedule and claims history.

Which factors impact rideshare insurance costs?

  • Driver’s age – younger drivers pay higher premiums than experienced drivers.
  • Driving history – licence points and convictions may make it difficult to get rideshare insurance.
  • Type of vehicle you drive – e.g. make, model, age, emission level.
  • Location – high crime or more congested areas will have higher rates.
  • Working schedule – you’ll pay more for late-night or peak-hour traffic driving.
  • Mileage – more time on the road = higher fees.
  • Claims history – previous claims may hike up your premiums.
  • Vehicle security – vehicles in a secure location (e.g. locked garage) have cheaper rates.

Can I lower my rideshare insurance premiums?

Yes, you can! Here’s how:

  • Compare insurance quotes from various UK insurers to find the best deal. Use SimplyQuote’s 100% free, online comparison tool.
  • Pay annual premiums as opposed to monthly instalments. This mitigates the monthly interest charges.
  • Keep up to date with vehicle services to prevent premature breakdowns and other mechanical issues.
  • Be a responsible driver. This includes always having a valid driving licence and insurance policy, obeying road regulations and sticking to the speed limit.
  • Only choose the level of cover you need to avoid unnecessary expenses.
  • Reduce your mileage (if possible) as less time on the road will reduce your premiums.
  • Upgrade your rideshare vehicle (if possible), as newer models may be cheaper to insure.
  • Opt for telematics insurance to base your premiums on how you drive.

Bonus read: How To Get Cheaper Taxi Insurance in the UK.

Final thoughts

We’ve extensively explored what rideshare insurance is and why you need it as a private taxi driver in the UK. Having the right vehicle insurance is a legal requirement to drive on UK roads, whether it’s for business or pleasure.

If you’re already a rideshare driver, or considering going into this line of work, contact SimplyQuote or use the online comparison tool to find the best insurance deals across Great Britain today!

Happy driving!

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).