Taxi Insurance
Compare Taxi Insurance Quotes
Compare specialist quotes from 5+ specialist UK taxi insurers.
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What Is Taxi Insurance?
Taxi insurance is a specialist motor policy that covers drivers who carry passengers for hire and reward, protecting you against accident claims, vehicle damage, and third-party liability while you work.
It works like standard car insurance but is designed for the higher mileage, longer hours, and passenger-carrying risks that come with taxi and private hire work. Policies cover both public hire (hackney carriages) and private hire vehicles.
Every taxi and private hire driver in the UK is legally required to hold a dedicated taxi insurance policy. A standard personal motor policy does not cover you for carrying passengers for money.
How To Compare Taxi Insurance Quotes
Compare quotes from specialist taxi insurers in minutes using the online comparison tool, powered by Quotezone.
Enter your details
Fill in one form with your personal details, driving licence, vehicle information, taxi licence number, and claims history. The form takes around five minutes.
Choose your cover
Select your preferred cover level (third-party only, third-party fire and theft, or fully comprehensive) and any add-ons you want.
Compare your quotes
Specialist insurers return tailored quotes based on your details. Compare on price, cover limits, and excess before choosing.
Buy online
Pick the quote that fits your needs and budget. All providers on the panel are authorised by the FCA, so your policy and your money are protected.
How Much Does Taxi Insurance Cost?
Most UK taxi drivers pay between £1,600 and £3,000 per year for comprehensive cover, though what you actually pay depends on your age, location, vehicle, and the type of hire work you do.
What is the typical cost by hire type?
| Hire Type | Typical Annual Cost | Monthly Equivalent | Notes |
| Private hire (minicab, Uber) | £1,400–£2,400 | £117–£200 | Pre-booked work, lower risk profile |
| Public hire (hackney carriage) | £1,800–£3,200 | £150–£267 | Street hails and ranks, higher accident risk |
| Fleet (2+ vehicles) | £1,200–£2,000 per vehicle | £100–£167 | Multi-vehicle discount on single policy |
Figures are based on insurer average quoted premiums and industry data. Your actual price will depend on your individual circumstances.
How have premiums changed?
Taxi premiums followed the wider motor insurance market upwards during 2023 and peaked in early 2024. Prices have since eased, but taxi cover remains more expensive than standard car insurance because of the higher mileage and commercial use.
Related Read: How Much Does Taxi Insurance Cost?
What Affects the Price of Taxi Insurance?
Insurers calculate your premium based on how likely you are to make a claim and how much that claim would cost.
Your age and experience
Younger drivers and those newly licensed for taxi work pay more. Premiums drop as you build experience and a claims-free track record.
Where you work
City centre driving in London, Birmingham, or Manchester costs more than rural areas. Higher traffic density and theft rates push premiums up.
Your driving record
A clean licence with no claims keeps your premium low. Points, convictions, or past claims push it up.
Your vehicle
Lower insurance groups, better safety ratings, and smaller engines all bring costs down. The Toyota Prius and Skoda Octavia are popular with private hire drivers partly because they sit in low insurance groups. See best cars for private hire for a full comparison of the cheapest vehicles to insure.
Your hire type
Private hire (pre-booked only) is usually cheaper than public hire (street hails and ranks). App-based drivers working through Uber or Bolt fall under private hire.
Your cover level and excess
Third-party only is the cheapest tier. Choosing a higher voluntary excess also reduces the premium, but make sure you can afford it if you claim.
What Are the Three Levels of Taxi Insurance?
UK law requires at least third-party insurance under the Road Traffic Act 1988. There are three levels to choose from.
Third-party only
The minimum legal requirement. Covers damage to other people, their vehicles, and their property, but nothing for your own vehicle.
Third-party, fire and theft
Everything in third-party only, plus cover if your taxi is stolen or damaged by fire. A sensible middle ground if your vehicle is not worth insuring for full repairs.
Fully comprehensive
The widest cover available. Covers damage to your own vehicle as well as third-party damage, regardless of who caused the accident.
Most full-time taxi drivers choose comprehensive cover because the vehicle is their livelihood. Some insurers only offer third-party or comprehensive, with no mid-tier option.
What does each level include?
| Cover Level | Third-Party Damage | Fire & Theft | Own Vehicle Damage | Best For |
| Third-party only | Minimum legal cover, older vehicles | |||
| TPFT | Mid-value vehicles | |||
| Fully Comp | Most full-time drivers |
What Does Taxi Insurance Cover?
What your policy covers depends on the level and insurer you choose, but all taxi insurance policies must include hire and reward cover as a minimum.
What is included as standard?
Every policy covers compensation for injuries to other people and damage to their property caused by your driving. Comprehensive policies add cover for damage to your own vehicle regardless of fault.
Most policies also include social, domestic and pleasure use alongside your hire and reward cover, so you can use the vehicle for personal trips without a separate policy.
What is not covered?
Taxi insurance does not cover driving under the influence, driving without a valid licence or taxi permit, or deliberate damage.
Using your taxi to deliver food or parcels is also excluded. That requires courier insurance because you are carrying goods, not passengers.
Related Read: What Is Hire And Reward Insurance?
What Types Of Taxi Insurance Are Available?
The type of taxi insurance you need depends on how you pick up passengers, which platform you drive for, and the vehicles you operate.
By hire type
Public hire insurance
covers hackney carriages and black cabs licensed to pick up passengers from the street or at taxi ranks.
Private hire insurance
covers minicabs, airport transfers, and app-based vehicles that take pre-booked passengers only.
Black cab insurance
is specialist cover for London-style hackney carriages, factoring in The Knowledge and TfL licensing requirements.
Minicab insurance
covers private hire vehicles operating through a licensed minicab office or booking app.
PCO insurance
is designed for drivers holding a Private Carriage Office licence to operate in London.
Chauffeur insurance
covers executive and luxury vehicle hire where passengers expect a premium service.
Taxi fleet insurance
covers two or more vehicles under a single policy with one renewal date, reducing admin and often lowering the per-vehicle cost.
Related Read: What Is The Difference Between Private Hire And Taxi Vehicles?
By platform
Uber taxi insurance
requires your own private hire policy because Uber’s Partner Protection covers you on-trip only.
Bolt, Free Now, and other app-based platforms operate under the same rules, so you need a dedicated private hire policy regardless of which platform you drive for.
Related Read: What Insurance Do I Need For Uber?
By location
Birmingham taxi insurance
covers drivers licensed by Birmingham City Council, where local licensing rules differ from London and other regions.
By provider
Freeway
is a specialist taxi insurer offering policies for both public and private hire vehicles.
Towergate
provides tailored taxi cover with options for fleet operators and individual drivers.
Zego
offers pay-as-you-go and flexible taxi insurance, popular with drivers who work part-time or across multiple platforms.
Related Read: Top 6 UK Uber Driver Insurance Providers
What Add-Ons Should You Consider?
Most policies let you bolt on extra cover for risks that are not included as standard. Not all add-ons are worth paying for, but several can save you money in the long run.
Breakdown cover
Taxis cover far more miles than the average car, so breakdowns happen more often. Roadside recovery gets you moving again without losing a full shift.
Public liability cover
Protects against claims if a passenger is injured or their property is damaged during a trip. Often included as standard, but some insurers offer extended public liability limits as an add-on.
Legal expenses cover
Covers solicitor fees if you are involved in a dispute after an accident. Typically costs £15 to £35 per year and covers up to £100,000 in legal costs.
Loss of licence cover
Pays a set amount if you lose your taxi licence for medical reasons. It will not cover revocation for misconduct or driving offences.
Replacement vehicle cover
Provides a temporary vehicle while yours is being repaired. Worth considering if even a few days off the road would seriously dent your earnings.
Windscreen cover
Pays for windscreen repair or replacement without affecting your no-claims bonus.
Telematics insurance
A black box device tracks your driving habits and rewards safe behaviour with lower premiums. Particularly useful for younger drivers or those new to the trade.
Fitting a dash cam is also worth considering. It records footage that can speed up fault disputes and may help reduce your premium.
How To Get Cheaper Taxi Insurance
You do not have to accept the first quote you see. There are several practical steps that can bring down the cost.
Compare quotes yearly
Always compare before renewing. The FCA found that loyal customers routinely pay more than new ones.
Build your no-claims bonus
Every claim-free year adds to your discount. Five or more years of no claims can reduce your premium by up to 65%.
Increase your voluntary excess
A higher excess reduces your premium, but make sure you can afford to pay it if you need to claim.
Reduce your mileage
Lower annual mileage means a lower premium. Be accurate when you declare it, because understating your mileage could invalidate your policy.
Choose the right vehicle
Cars in lower insurance groups cost less to insure. If you are choosing your next taxi, check which vehicles have the lowest group ratings before you buy.
Pay annually instead of monthly
Annual payments are almost always cheaper. Monthly instalments include interest that can add 15–20% to the total cost.
Increase your voluntary excess
A higher excess reduces your premium. Make sure you can afford to pay it if you need to claim.
Secure your vehicle overnight
Parking in a locked garage or on a private driveway reduces theft risk. An approved alarm, immobiliser, or tracking device can also lower your premium.
How To Make A Claim On Your Taxi Insurance
If you are involved in an accident or your taxi is damaged or stolen, contact your insurer as soon as possible.
Report the incident
Call your insurer’s claims line and provide the date, time, location, and a description of what happened. Most taxi insurers have 24-hour claims lines.
Gather evidence
Take photos of the damage from multiple angles. Note the other driver’s name, registration, and insurance details. Collect any witness contact details and, if the police attended, record the incident reference number.
Wait for assessment
Your insurer may send an assessor or approved repairer to inspect the damage and agree the cost of repairs.
Receive your settlement
Your insurer will either arrange repairs, reimburse you, or (if the vehicle is written off) pay out the market value minus your excess.
Making a claim will usually affect your no-claims discount unless you have NCD protection. A fault claim can increase your premium significantly at the next renewal.
Who Can Get Taxi Insurance In The UK?
Any licensed taxi or private hire driver in England, Scotland, Wales, or Northern Ireland can apply, provided they meet basic eligibility criteria.
Driver requirements
You will typically need to be between 21 and 75, hold a valid UK, EU, or NI driving licence, and have a taxi driver licence from your local council. Some insurers set 25 as the minimum age.
Vehicle requirements
Your vehicle must be licensed for hire work by your local authority. Most policies cover standard saloons, MPVs with up to eight seats, hackney carriages, and wheelchair-accessible vehicles.
Uber and app-based drivers
If you drive for Uber, Bolt, or a similar platform, you still need your own private hire insurance. The platform’s cover only applies during an active trip.
Thinking of starting out? Read how to start a private hire taxi business and how much do Uber drivers make for an honest look at the numbers.
What Information Do You Need For A Taxi Insurance Quote?
Having the right details to hand speeds up the process and helps you get an accurate price.
Your personal and business details
You will need your name, date of birth, address, and business registration details. If you are self-employed, you will also need your UTR number for some providers.
Your taxi licence
Have your taxi licence or badge number ready, along with the date it was issued. If you are still applying, see how to become a black cab driver for the full process.
Your vehicle details
You will need your registration number (or make, model, and year), average annual mileage, overnight parking location, and any modifications.
Your driving and claims history
Insurers ask about claims from the last five years and any motoring convictions. A clean record earns a no-claims discount that can cut your premium by up to 65%.
Your cover preferences
Know which cover level you want and any add-ons. If you are unsure whether you need hire and reward cover or a different product, the comparison form will guide you through it.
Frequently Asked Questions
Public hire covers taxis that pick up passengers from the street or ranks, including hackney carriages and black cabs. Private hire covers pre-booked vehicles only, such as minicabs, Uber, and Bolt.
Yes, most taxi policies include social, domestic and pleasure cover alongside hire and reward. Check your policy wording to confirm.
Yes, Uber’s Partner Protection insurance primarily covers you on-trip only. You still need your own private hire insurance as a legal requirement.
Yes, but it will cost more. Most specialist insurers accept drivers with minor convictions (SP30, SP50), though serious offences like drink-driving (DR10) make cover harder to find.
Yes, delivering food or parcels requires courier insurance rather than taxi insurance, because you are carrying goods, not passengers.
Annual payments are almost always cheaper. Monthly instalments include interest that typically adds 15–20% to the total cost over the year.
You face a £300 fixed penalty and six points, or a fine of up to £5,000 and a driving ban if the case goes to court. Your licensing authority can also revoke your taxi badge.
You can compare quotes in minutes through SimplyQuote. Some policies can start on the same day, depending on the insurer.
Rules vary by city, and in most areas only hackney carriages can use bus lanes. See can private hire taxis use bus lanes for the full breakdown.
Taxi insurance premiums, fuel, vehicle maintenance, and licensing fees are all allowable expenses if you are self-employed. See what expenses can a taxi driver claim for a full list.
Profitability depends on your location, hours, and running costs. Read how profitable is a taxi business for realistic figures.
There are exemptions for certain hire work, but the rules depend on your vehicle type and licence. See do private hire drivers need to wear seat belts for the current law.
