Find Product
Select Page

Why do I need Taxi Insurance in 10 points?

Sep 14, 2019 | Insurance, Motoring

why do i need taxi insurance

The UK has one of the largest systems of taxis running on the roads every day. Let it be private hire or public transport services, if you are making money picking and dropping people off their locations, you’re a taxi driver. Chauffeur, Cab Driver, Minibus Driver, and even Uber driver, everyone comes under the category. These taxis spend a lot of time on the roads, covering hundreds of miles on a daily basis. That means the risk for these taxis facing engine failure, minor and major damages, and accidents is quite high as compared to personal vehicles. Consequently, making taxi insurance a necessity for stress-free travel experience for the drivers as well as the passengers.

Standard Motor Vehicle Insurance Vs Taxi Insurance

Taxi insurance compared to standard vehicle insurance is quite expensive. Pricing for taxi insurance depends on a lot of factors. The number of miles it travels, the age of the driver, the number of people it transports and even the condition of the car. One of the other reasons is that taxi drivers are not only covering for their safety as well as the safety of their passengers. If something unfortunate happens, the insurance will help them cover the cost of damage caused to the vehicle and public liability as well. Therefore, making taxi insurance costly than regular vehicle insurance.

Why do you need to consider Taxi Insurance?

A hassle-free on the road experience:

No matter what category of a taxi driver you are, public or private, it’s critical to have quality insurance for your vehicle. Not only it helps in having a hassle-free road experience but also is a source of relief. You can drive your taxi all over the city, from crowded streets to rush hours without any worries. People think that regular vehicle insurance can do the job for their taxi. While the reality is, if you claim insurance for your taxi under regular vehicle insurance, you are committing a crime while constantly burdening yourself with the costs of heavy fines and damages. You can lose your license and even go to jail for your negligence in this regard.

Safeguard your source of income:

Whether you are a part-time taxi driver or a full-time taxi driver, the vehicle is your source of income. If you get in a serious accident without having proper taxi insurance, you can have your license suspended immediately as well as lose the only source of income you have. Therefore, even taxi insurance can seem a bit costly in the beginning but in the long run, it does great help to you. Both in monetary and safety terms.

Protection of your Passengers:

Driving a taxi without having any genuine cover means you are risking the safety of passengers, who unknowingly are travelling in your uninsured car. In case of any damage, it can lead to criminal cases as well. If found guilty, you would be liable for paying the injury and material costs you have incurred for yourself and for the passengers also.

What Taxi Insurance can cover?

Windscreen Covers:

From replacing a windscreen completely to refilling a small chip, Windscreen cover is available with every single taxi insurance.


Mis-fuelling can occur easily when travelling long distances or in unknown places, but no need to worry as quality taxi insurance even covers your Mis-fuelling damage.

Breakdown Cover:

If the taxi breakdowns on the way, your passengers will have the facility of separate onward travel easily.

Home start recovery:

If your vehicle doesn’t start, home start recovery for your taxi is here to help.

Public liability:

Proper taxi insurance would provide you with public liability insurance as well. That means paying for the injuries and damage costs of passengers caused by accident.

Personal use cover:

Taxi insurance also provides cover for your personal use. Allowing you to use the car both for domestic and commercial purposes and still have insurance.

Vehicle Repairing:

Taxi insurance covers all the repair costs for the car in case of minor or a major accident.

Assistance from the accident site:

24-hour claim assistance helps the drivers to get on-site help in case of an emergency.

taxi insurance quotes

Tips to get cheaper yet reliable Taxi Insurance:

  • Do your homework before getting insurance, research and find the package that perfectly fits your need.
  • Prefer a plan that provides maximum Including breakdown cover, loss of earnings, legal fees, personal accident insurance, and commercial vehicle insurance.
  • Install dash cams and in-car cameras to help reduce premiums. It will also be a source of valid evidence while insurance claim and will protect you from the “cash for crash” frauds.
  • Always show interest in industry-focused packages with freebies and special offers.


More to Explore:

How much is insurance for a taxi company?

Insurance for taxis depends on a lot of variables. The time it spends on the road, age of the driver and even physical aspects of the car. It can range from very cheap to much expensive in a swift manner. However, it all depends on what kind of insurance you are looking for your taxi company. Most of the insurance policies average from £3000 to £8000 per cab, every year.

Do taxi drivers need public liability insurance?

Usually, taxi insurances don’t cover for public liability. However, if you need one, it is better to look for a policy that can also cover the damage or injury claims made by passengers when your taxi gets in an accident.

What insurance do I need for Uber?

Most of the Ubers remain insured under regular vehicle insurance but it’s best to use taxi insurance if you drive it full time or part-time. As it will allow you to use the car for both personal and commercial purposes and still have the car insured all the time.

uber taxi insurance

Why is commercial insurance so expensive?

Commercial vehicle insurance is expensive than personal vehicle insurances because of its riskier. Since commercial cars spend all the time on the roads, therefore, the risk of getting in an accident and suffering damages/injuries is quite high. In addition, public liability and the likelihood of claims after an accident also count.

What different types of taxi insurance are there?

Taxi Insurance can include private hire insurance, public hire insurance, minicab insurance, black cab insurance, hackney carriage insurance, minibus insurance, or even taxi fleet insurance, all taxi vehicles must be licensed by the appropriate taxi licensing authority in your area.

What is the difference between public hire insurance and public hire insurance?

The difference between the 2 insurance types are:

  • Public Hire Insurance – This is, for example, a black cab taxi in London who can immediately pick people from the street without the need for booking
  • Private Hire Insurance – This insurance is for taxis or private hire vehicle who are booked and have arranged appointments to collect the customer from an address, an example of these are your local taxi company or even when you call or arrange an uber car to collect you.

What cover can a Taxi driver get when getting a taxi insurance quote?

There are 3 main taxi insurance policies which you can select from when getting a quote, these are:

Useful Links:

National Taxi Association – Since 1960, this body has been helping to consult on all forms of taxi legislation in England and Wales.

National Private Hire Association – The NPHA is an organisation that provides useful support and help for cabbies everywhere.

Licensed Taxi Drivers’ Association – A membership group for taxi drivers, the LTDA is also a support group for those that work in the trade.

Recent posts

What is a Guarantor Loan

What is a Guarantor Loan

What is a guarantor loan? A guarantor loan is a solution to borrowing money if you have little or no credit score,...

World’s First Flying Taxi

World’s First Flying Taxi

World’s First Flying Taxi & Drone Airport to Open Later This Year The first pop-up urban airport is set to open in...

Browse products