Public Hire Taxi Insurance
Public Hire Taxi Insurance Quotes
Cover for licensed hackney carriage drivers.
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What Is Public Hire Insurance?
Public hire insurance is specialist motor cover for hackney carriage drivers who pick up passengers from the street or at a taxi rank, giving you the legal protection you need to operate as a licensed taxi.
Unlike private hire vehicles that only take pre-booked fares, public hire taxis can be flagged down or approached at designated ranks. This street-hailing element carries extra risk, which is why standard car insurance or even private hire cover does not meet the legal requirement.
Every hackney carriage driver must hold valid hire and reward insurance before carrying passengers. Driving without it risks an unlimited fine, penalty points, and vehicle seizure under Section 143 of the Road Traffic Act 1988.
How To Compare Public Hire Insurance Quotes
Comparing quotes from specialist hackney carriage insurers is the fastest way to find cover at the right price, and an online comparison tool lets you see prices side by side in minutes.
Enter your details
Provide your hackney carriage licence number, vehicle registration, driving history, and the council area where you hold your public hire licence.
Choose your cover level
Select third-party only, third-party fire and theft, or fully comprehensive. Most hackney carriage 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 all the areas you operate in.
Buy online
Once you find the right policy, most insurers let you buy and receive your documents the same day so you can start working immediately.
What Does Public Hire Insurance Cover?
A public hire policy covers you for carrying passengers who hail your taxi from the street or pick you up at a rank, plus any third-party injury or property damage that occurs while you are working.
Third-party liability
Every public hire 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. Hackney carriages parked on the street overnight face higher theft risk, making this cover worth considering.
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.
Passenger liability
Public hire policies include passenger liability to cover medical expenses and compensation if a fare-paying passenger is injured during a journey. This is separate from your third-party liability for other road users.
Public liability
Some policies bundle public liability insurance to protect you against claims from passengers injured while getting in or out of your cab, 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.
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What Levels Of Cover Are Available?
Public hire 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 | £1,000–£2,500 | Older vehicles with low value |
| Third-party, fire and theft | TPO + fire and theft of your vehicle | £1,500–£3,000 | Drivers with secure overnight parking |
| Fully comprehensive | TPO + TPFT + own-vehicle damage | £2,000–£4,000 | Most working hackney carriage drivers |
Most hackney carriage drivers opt for comprehensive cover because repair bills for purpose-built taxis like the LEVC TX run well above those for a standard saloon.
What Types Of Public Hire Insurance Can You Get?
Beyond the cover level, a public hire policy is rated on the kind of licensed vehicle you drive and where you are licensed to work.
London black cab cover
London hackney carriage drivers who operate a purpose-built cab need specialist black cab insurance rated for the higher vehicle value. An LEVC TX can cost upward of £65,000 new, so comprehensive cover is almost always the right choice.
Hackney carriage saloon cover
Outside London, many councils license standard saloons as hackney carriages. These vehicles are cheaper to insure than purpose-built cabs, and premiums are typically lower than London rates.
What Is Not Covered By Public Hire Insurance?
Public hire insurance covers hackney carriage work, 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 hackney carriage licence drives the vehicle, no cover applies.
Operating outside your licensed area
A hackney carriage licence is usually valid for a single council area. If you pick up fares outside that area without the correct cross-border licence, your insurer may refuse a claim.
Personal use without dual cover
A standard public hire policy covers you while working. If you also use the vehicle for personal trips, you need a dual-use policy that includes social, domestic, and pleasure use.
Delivery and courier work
Carrying goods for payment requires separate hire and reward cover rated for goods. A public hire policy covers passengers, not parcels or food deliveries.
How Much Does Public Hire Insurance Cost?
Most hackney carriage drivers pay between £2,000 and £4,000 per year for fully comprehensive cover, though costs vary widely depending on your vehicle, location, and driving record.
| Cover level | Typical annual cost |
| Third-party only | £1,000–£2,500 |
| Third-party, fire and theft | £1,500–£3,000 |
| Fully comprehensive | £2,000–£4,000 |
Public hire premiums tend to run higher than private hire because street hailing increases your exposure to unvetted passengers and unpredictable routes.
A 40-year-old hackney carriage driver in Manchester with five years' no-claims and a standard saloon taxi might pay around £2,400 per year for comprehensive cover. Paying monthly at 10% interest adds £240, bringing the total to £2,640.
Monthly payments
Spreading the cost monthly typically adds 8–11% to the total – on a £3,000 policy that means paying £240–£330 in interest charges over the year.
Read more about taxi insurance costs to see how your area compares.
What Affects Your Public Hire Insurance Premium?
Hackney carriage 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 value
Purpose-built hackney carriages like the LEVC TX cost more to insure than standard saloons because parts and repairs are more expensive. Older vehicles with lower values are cheaper to cover.
Licensed area
City-centre licensing areas with higher traffic density and accident rates attract higher premiums than rural or suburban councils. London hackney carriage drivers typically pay the most in the UK.
Annual mileage
Full-time 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.
Age and experience
Most councils require you to be at least 21 and to have held a full driving licence for at least 12 months before you can apply for a hackney carriage driver's licence. Younger drivers face higher premiums, with costs dropping noticeably after 25.
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.
How To Save Money On Public Hire Insurance
Hackney carriage premiums are among the highest in UK motor insurance, 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 £3,000 policy, that saves £240–£330.
Consider fleet cover
If you run two or more hackney carriages, a taxi fleet policy can be cheaper than insuring each vehicle separately, with fleet discounts typically starting at 10–15%.
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Frequently Asked Questions
Public hire insurance covers hackney carriages that can be flagged down on the street or pick up from a rank. Private hire insurance covers vehicles that only accept pre-booked fares through an operator or app.
Yes. London hackney carriages need specialist black cab cover that accounts for the higher vehicle value and the unique licensing requirements set by Transport for London.
No – a standard social-and-commuting car policy does not cover hire and reward work. You must hold a specialist public hire policy before carrying fare-paying passengers.
You need a hackney carriage driver's licence issued by your local council. Requirements vary, but most councils ask for a DBS check, a medical, and a local knowledge test.
Yes – street hailing means you cannot vet passengers in advance, and unpredictable routes increase accident exposure. Both factors push premiums above private hire rates.
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.
A hackney carriage can pick up passengers from the street or a rank without a booking, while a private hire vehicle can only take pre-booked fares. Read more about the differences between private hire and taxi vehicles.
According to Department for Transport statistics, there were around 56,400 licensed hackney carriages in England as of 2024.
No – Uber operates as a private hire service, not public hire. You would need a private hire licence and Uber taxi insurance, not a hackney carriage policy.
Some drivers hold both licences, but you would need a policy that covers both types of work. Speak to a specialist taxi insurer to find dual-use cover.
No – chauffeur and executive hire work is typically pre-booked, so it falls under private hire rather than public hire. You would need specialist chauffeur insurance rated for executive vehicle values.
A PCO licence is issued by Transport for London for private hire vehicles, not hackney carriages – London black cab drivers hold a separate TfL hackney carriage licence. Read more about PCO insurance if you operate a private hire vehicle in London.
