What Is Private Hire Taxi Insurance?
Private hire taxi insurance (sometimes called minicab insurance, PHV insurance, PCO insurance or app driver cover) is required for drivers who carry passengers on pre-booked journeys, where this use falls outside the scope of standard motor insurance. If you operate with a local firm, run an airport transfer service, or drive for an app, typically you’ll need this policy to help ensure your business meets licensing and insurance requirements. For information on policies for street pickups or black cabs, see our public hire insurance and black cab insurance pages.
What’s Covered by Private Hire Taxi Insurance?
A private hire taxi insurance policy is designed to cover the key risks faced by minicab and app-based drivers. You can choose from different levels of cover, with the features available depending on the policy selected and how you use your vehicle.
- Third party only (TPO) – Covers injury or damage you cause to other people, their vehicles, or property while working as a private hire driver. This is the legal minimum for minicab and app-based work.
- Third party, fire and theft (TPFT) – Includes third party cover, with added protection if your vehicle is stolen or damaged by fire, subject to policy terms and conditions.
- Comprehensive – Provides a wider level of protection, including cover for damage to your own minicab as well as to others, including following an at-fault incident (subject to policy terms and conditions). Some comprehensive policies may also include cover for incidents involving uninsured drivers or vandalism.
- Passenger liability – Cover for claims made by your passengers if they’re injured or their belongings are lost or damaged during a journey. Helps protect you against compensation and legal claims, subject to policy limits and exclusions.
- Windscreen/glass cover – May cover the cost of repairs or replacement of broken or chipped windscreens and side windows – crucial for drivers spending long hours on the road. An excess (which is the first part of any successful claim that you are liable for) may apply.
- Courtesy or replacement car – Some policies include a temporary plated minicab if yours is off the road after a non-fault accident, so you can keep earning while your vehicle’s being repaired. (subject to availability and policy terms).
Always check your policy wording for full details of what is included, along with any limits, exclusions and eligibility requirements.
What the Writer Says…
"Private hire drivers rely on specialist insurance to protect themselves, their business and their passengers. Compare quotes, check the details, and choose a policy that fits how you work – whether you drive full-time, part-time, or through an app."– Ian Beevis, Insurance Expert & Co-founder of Clean Green Cars
Add-Ons for Private Hire Taxi Insurance
Adding the most appropriate extras to your private hire taxi insurance can provide additional protection and reassurance when you’re out on the road. From legal expenses to public liability, breakdown cover, and more, these additional elements of insurance cover can extend your cover beyond the core policy features. Whether you drive for a local minicab firm, work part-time, or take jobs through an app, you can tailor your policy to match your work and your risks – and only pay for the features you actually need. Here are some of the most common private hire insurance add-ons – please note that claim limits typically apply:
If you switch between private hire and public hire, or work for an app, see our Uber insurance and public hire insurance pages for the right add-ons. For multi-vehicle or mixed taxi work, see our main taxi insurance page for more options.
Helps cover your legal costs and compensation if a passenger or member of the public claims for injury or property damage in connection with your minicab – particularly relevant for incidents at pick-up points, while loading luggage, or if someone is hurt getting in or out of your vehicle.
Pays for legal representation, court costs, and expert advice if you’re involved in a dispute – such as defending yourself against a claim, pursuing an uninsured driver, or dealing with contractual or employment issues.
Provides roadside assistance and recovery if your minicab breaks down, gets a flat tyre, or won’t start – so you can get back to work quickly and avoid losing income from cancelled fares.
Covers the cost of replacing lost, stolen, or damaged taxi keys and, in many cases, pays for locksmith services, reprogramming, and even onward travel if you’re stranded and unable to drive.
Pays out a lump sum or weekly benefit if you’re injured in an accident and can’t work, helping you cover bills, medical costs, and living expenses while you recover.
Lets you make one or more claims without losing your years of no claims discount, which may help reduce the impact on your premiums in the future.
Exclusions – What’s Not Covered?
It’s just as important to know what isn’t covered by your private hire taxi insurance as what is. Every policy has its limits and exclusions – and getting caught out can cost you your licence, your income, or even your business. Most exclusions are easy to avoid if you know the rules, so always read your documents before you buy or renew, or check with the insurer for clarification. Below are some example as to why private hire drivers might not be covered:
- Picking up passengers without a booking or outside your licensed area – You’re only covered for pre-booked journeys within your licensed zone – street pickups or working “off the map” may typically void your policy.
- Letting an unlisted driver use your minicab – Only drivers specifically named on your policy are insured; claims will be refused if someone else is behind the wheel.
- Personal use (unless your policy includes social, domestic and pleasure (SDP) cover) – Many policies exclude personal errands or family trips unless you’ve added SDP cover, so check your documents before driving off-duty.
- Leaving your keys in the car or failing to secure your vehicle – Most insurers won’t pay out for theft or damage if your vehicle wasn’t properly locked or the keys were left inside.
- Not declaring claims, convictions or relevant changes – Failing to disclose past incidents, points, or new jobs can invalidate your cover completely – even if the claim is unrelated.
- Breakdowns or wear and tear (unless you’ve added breakdown cover) – Standard private hire insurance doesn’t pay for routine repairs, maintenance, or mechanical faults – breakdown cover must be added separately.
Who Needs Private Hire Taxi Insurance?
If you pick up fares without a booking, you’ll need public hire insurance instead. For a full list of options, visit our taxi insurance hub.
If you only carry passengers who’ve booked their journey in advance, you’ll need private hire insurance. This includes:
How to Get a Private Hire Taxi Insurance Quote
Getting a quote is typically quick – just have these details ready:
How Much Does Private Hire Taxi Insurance Cost?
How much you’ll pay for private hire taxi insurance depends on a mix of personal and business factors – but some drivers find private hire insurance can be priced differently to public hire cover, depending on risk factors and how the vehicle is used. Because private hire work is pre-booked and avoids street pickups, some insurers may view this type of work as lower risk compared to public hire taxis. Here’s what may affect your price:
- Your driving record and no claims bonus – A clean record and more years without claims will usually mean lower premiums.
- Your age – Younger drivers may often pay more for private hire taxi insurance.
- Your vehicle’s type and value – More expensive, specialist or newer vehicles typically cost more to insure.
- Where you operate – Working in city centres or busy urban areas is often pricier than quieter locations.
- Your annual mileage – Higher mileage increases your risk and can push up the cost.
- Your chosen cover and extras – Comprehensive insurance and add-ons like breakdown or legal expenses may increase your premium.
Compare quotes for the most appropriate deal – for a cost breakdown by taxi type, visit our taxi insurance comparison page.
Ways to Save on Private Hire Taxi Insurance
Every private hire driver wants to keep their insurance costs as low as possible – without sacrificing the cover that keeps you safe and legal. Whether you’re running a minicab full-time, working part-time, or driving for an app, here are some
ways that may help you manage the cost of your private hire taxi insurance:
For even more ways to save – plus tips for public hire, Uber, and other taxi jobs – check out our taxi insurance hub or see our guides for public hire insurance and Uber insurance.
Private Hire Taxi Insurance FAQ
Do I Need Private Hire Insurance to Drive a Taxi?
If you transport passengers for payment, you need taxi insurance that matches your licence type. Private hire drivers require private hire insurance, as standard car insurance does not provide cover for hire and reward use.
What Are the Most Important Types of Private Hire Insurance Cover?
The most important cover for a private hire taxi is road risks. Road risks cover forms the foundation of private hire insurance and is required for vehicles used for hire and reward, subject to licence and policy terms. Other important types of private hire taxi cover that you may wish to consider include public liability insurance, personal injury, loss of licence and breakdown assistance.
How Much Will My Private Hire Taxi Insurance Cost?
The cost of a private hire taxi insurance policy will depend on a few different factors. Insurance providers will take the following into account when coming up with a price – the value of your vehicle, your driving history, your age, no claims bonus, your taxi driving experience and the level of cover you take out. Other considerations may typically apply too. The cost will vary depending on whether you decide to include add-ons or more miles as-well.
Does Private Hire Taxi Insurance Include Public Liability Cover?
While public liability cover is not legally required, it is typically a good idea to take it. Generally, it is an optional extra, but many insurers recommend getting it anyway. It protects you – the driver against claims made by passengers and helps pay (up to set limits) for the cost of any injuries that occur. You can obtain a quote for taxi insurance at the top or foot of this page. You will need to know the area you work in so you can compare the different policies. Some policies do not cover work outside of their area, and others offer only partial cover. Typically, the level of private hire taxi insurance cover that you need for your business will depend on what type of vehicle you have and where you are operating. For example, some policies only offer full-cover if you work in certain areas.
Is Private Hire Insurance Cheaper Than Public Hire Insurance?
In general, private hire insurance is more affordable than public hire insurance since the risks associated with driving a private hire taxi versus a public hire taxi are lower.
How Will I Get My Private Hire Insurance Documents?
In most cases your private hire taxi insurance documents will be sent to you via email and in the post.
Does It Make a Difference to My Private Hire Insurance Which Plating Authority I Operate Under?
Insurance providers provide a quotation based on many factors which can include the area you operate in. Some of the plating authorities are as follows: Brighton & Hove, Southampton, Bristol, Reigate and Banstead, Plymouth, Middlesborough, Kingston-Upon-Hull, Knowsley, South Gloucester, Peterborough, Crawley, Tameside, Huntingdon, Milton Keynes, Cardiff, Doncaster, Newport, Blackpool, Aylesbury Vale, Rotherham, Calderdale, Edinburgh, Sefton, Glasgow City, Stockport, Kirklees, Walsall, Durham, Trafford, South Tyneside, Wirral, Warrington, Oldham, Newcastle Upon Tyne, Sheffield, Sandwell, Leicester, Wigan, Leeds, Stoke On Trent, Hackney, Blackburn With Darwen, Bolton, Rochdale
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Why Compare Private Hire Taxi Insurance?
Some of the benefits of comparing private hire taxi insurance include
