PCO Insurance
London PCO Insurance Quotes
Specialist cover for London private hire drivers.
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What Is PCO Insurance?
PCO insurance is specialist hire and reward motor cover for private hire drivers licensed by Transport for London, giving you the legal protection you need to carry pre-booked passengers in the capital.
PCO stands for Public Carriage Office, the Transport for London division that licenses both private hire vehicles and black cabs. Every TfL-licensed PHV driver must hold a valid hire and reward policy before accepting bookings.
Without the correct cover you risk penalty points, an unlimited fine, and vehicle seizure under Section 143 of the Road Traffic Act 1988. A standard social-and-commuting car policy does not cover fare-paying passengers.
You may also hear PCO insurance called minicab insurance, private hire taxi insurance, or hire and reward cover. All refer to the same type of policy for pre-booked passenger work.
How To Compare PCO Insurance Quotes
Comparing quotes from several specialist insurers is the fastest way to find affordable PCO cover, and an online comparison tool lets you see prices side by side in minutes.
Enter your details
Provide your TfL private hire licence number, vehicle registration, driving history, and the London borough where you park overnight.
Choose your cover level
Select third-party only, third-party fire and theft, or fully comprehensive. Most London PCO drivers choose comprehensive because it protects their own vehicle too.
Review your quotes
The Financial Conduct Authority recommends comparing quotes from at least three providers before buying. Check the excess, mileage limits, and whether the policy covers app-based work.
Buy online
Once you find the right policy, most insurers let you buy and receive your documents the same day so you can start driving immediately.
What Does PCO Insurance Cover?
A PCO policy covers you for carrying pre-booked passengers for hire and reward across London, plus any third-party injury or property damage that occurs while you are working.
Third-party liability
Every PCO policy includes third-party liability as standard. This pays for damage to other vehicles, property, or injuries to passengers and pedestrians caused by an accident that is your fault.
Fire and theft protection
TPFT and comprehensive policies add cover if your vehicle is stolen or damaged by fire. London's higher vehicle crime rates make this cover worth considering for drivers who park on the street.
Own-vehicle damage
Comprehensive cover pays to repair or replace your own vehicle after an accident, regardless of who was at fault. It also typically includes windscreen replacement and personal belongings cover.
Public liability
Some PCO policies bundle public liability insurance to protect you against claims from passengers who are injured while getting in or out of your vehicle, not just during a road traffic incident.
Employer’s liability
If you employ other drivers, employer’s liability cover is a legal requirement with a minimum of £5 million. Most insurers offer £10 million as standard.
Breakdown and roadside assistance
Many PCO policies offer breakdown cover as an optional add-on. For full-time drivers, roadside assistance is worth adding because a breakdown during a shift means lost earnings as well as recovery costs.
What Levels Of Cover Are Available?
PCO insurance comes in three standard tiers, each offering a different level of protection for your vehicle and your livelihood.
| Cover level | What it covers | Typical annual cost | Best for |
| Third-party only (TPO) | Damage to others only | £800–£2,000 | Older vehicles with low value |
| Third-party, fire and theft | TPO + fire and theft of your vehicle | £1,000–£2,500 | Drivers with secure overnight parking |
| Fully comprehensive | TPO + TPFT + own-vehicle damage | £2,000–£3,500 | Most working PCO drivers |
Most London PCO drivers opt for comprehensive cover because repair costs in the capital run well above the national average. If you drive for multiple platforms, check that your policy covers all of them.
What Types Of PCO Insurance Can You Get?
Beyond the cover level, PCO policies are shaped by the work you take on and the standard of vehicle you drive.
App-based cover
Drivers working through Uber, Bolt, or Free Now need a policy that explicitly covers app-dispatched bookings. Not every insurer treats app work the same as traditional radio-circuit bookings, so confirm before you buy.
Chauffeur-grade cover
If you operate a prestige vehicle for executive transfers, chauffeur insurance may suit you better. It covers higher-value vehicles and often includes business-use extensions for corporate contracts.
What Is Not Covered By PCO Insurance?
PCO insurance covers hire and reward driving, but several common situations fall outside the standard policy wording.
Driving under the influence
Any claim made while the driver is under the influence of alcohol or drugs will be rejected. The insurer may also void the entire policy.
Unlicensed or unnamed drivers
If someone who is not named on the policy or who does not hold a valid TfL private hire licence drives the vehicle, no cover applies.
Personal use without dual cover
A standard PCO policy covers you while working. If you also use the vehicle for personal trips, you need a dual-use policy or a separate private hire insurance extension that includes social, domestic, and pleasure use.
Mechanical breakdown
Breakdowns caused by wear and tear are not covered by motor insurance. You will need separate breakdown cover as an add-on or standalone policy.
Goods-in-transit
Delivering food or parcels requires hire and reward insurance rated for goods, not passengers. A PCO policy does not cover courier or food-delivery work.
How Much Does PCO Insurance Cost?
Most London PCO drivers pay between £2,000 and £3,500 per year for fully comprehensive cover, though costs vary widely depending on your driving record, vehicle, and postcode.
| Cover level | Typical annual cost (London) |
| Third-party only | £800–£2,000 |
| Third-party, fire and theft | £1,000–£2,500 |
| Fully comprehensive | £2,000–£3,500 |
These ranges reflect London-specific pricing, which typically runs 20–40% above the national average for private hire cover due to higher traffic density, accident rates, and vehicle crime.
A 35-year-old PCO driver in Croydon with three years’ no-claims and a Toyota Prius might pay around £2,200 per year for comprehensive cover. Paying monthly at 10% interest adds £220, bringing the total to £2,420.
Monthly payments
Spreading the cost monthly typically adds 8–11% to the total. On a £2,500 policy that means paying £200–£275 in interest charges over the year.
Read more about taxi insurance costs to see how London compares with other regions.
What Affects Your PCO Insurance Premium?
London PCO premiums depend on a combination of driver, vehicle, and location factors that insurers weigh differently.
Your driving record
A clean licence with no points or convictions attracts the lowest premiums. Even a single SP30 speeding conviction can push your quote up by 10–20%.
No-claims bonus
Building a no-claims bonus on a hire and reward policy can cut your premium by 30–50% over five claim-free years. Not all insurers accept a bonus earned on a personal car policy, so ask when comparing.
Vehicle type and age
Lower insurance-group vehicles like the Toyota Prius or Skoda Octavia cost less to insure. See which models rank best in our guide to the best cars for private hire.
London postcode
Your postcode has a direct effect on your premium. Drivers in high-claim boroughs like Tower Hamlets or Newham typically pay 15–25% more than those in quieter outer areas like Bromley or Sutton.
Annual mileage
Full-time PCO drivers covering 30,000 miles or more per year pay more than part-time drivers doing half that distance. Accurate mileage estimates help avoid overpaying.
Claims history
Even a single fault claim in the past three years can push premiums up by 20–40%. Keeping a clean claims record is one of the most effective ways to control costs over time.
Overnight parking
Parking in a locked garage or off-street driveway overnight reduces theft and vandalism risk, which lowers your premium compared with on-street parking.
Age and experience
TfL licenses private hire drivers from age 21, but many PCO insurers set their own minimum at 25. Drivers under 25 who can find cover face the highest premiums, with prices dropping noticeably after that threshold.
How To Save Money On PCO Insurance
London PCO premiums are among the highest in the UK, but several practical steps can bring the cost down without reducing your cover.
Compare quotes every renewal
Loyalty rarely pays with insurance. Comparing quotes from specialist taxi insurance providers each year is the single biggest way to cut costs.
Build your no-claims bonus
Each claim-free year earns a discount that compounds over time. After five years you could save 30–50% on your base premium.
Increase your voluntary excess
Raising your excess from £250 to £500 typically reduces the annual premium by 5–10%. Only choose an excess you can afford to pay if you need to claim.
Fit a telematics device
A telematics black box tracks your driving and rewards safe habits with lower renewal quotes. Careful drivers can see reductions of 15–30% after the first year.
Pay annually if possible
Paying the full premium upfront avoids the 8–11% interest markup that monthly instalments carry. On a £2,500 policy, that saves £200–£275.
Consider fleet cover
If you run two or more vehicles, a taxi fleet policy can be cheaper than insuring each car separately, with fleet discounts typically starting at 10–15%.
Frequently Asked Questions
PCO stands for Public Carriage Office, the Transport for London division that licenses private hire vehicles and black cabs in London.
They cover the same type of work – PCO insurance is the London-specific term because TfL’s Public Carriage Office issues the licences. Outside London, the same cover is called private hire insurance.
Yes – Uber’s motor insurance cover only applies while you are on an active trip. You must hold your own TfL-compliant hire and reward policy to accept bookings legally.
PCO insurance covers private hire vehicles that take pre-booked passengers only. Black cab insurance covers hackney carriages that hold a public hire licence allowing them to pick up passengers from the street or a rank.
Only if your policy includes social, domestic, and pleasure use. A standard hire and reward policy covers you while working, not during personal journeys.
Some insurers accept a no-claims bonus earned on a personal car policy, but not all do. Ask each insurer when comparing quotes, as transferring your bonus can reduce your premium.
Depending on your business structure you may also need public liability and employer’s liability cover. Read our full guide on what insurance taxi drivers need for a complete breakdown.
Yes. Hire and reward cover is rated higher because you spend more hours on the road and carry fare-paying passengers, both of which increase the risk profile compared with social-only use.
Private hire vehicles take pre-booked passengers only, while public hire vehicles (hackney carriages) can pick up from the street. Read more about the differences between private hire and taxi vehicles.
According to Department for Transport statistics, London had over 92,000 licensed private hire vehicles as of 2024, the largest concentration of PHVs in England.
Yes. If you operate two or more TfL-licensed vehicles, a taxi fleet insurance policy can cover all of them under one renewal date with a multi-vehicle discount.
