How Much Does Taxi Insurance Cost?
Taxi insurance is a legal requirement for anyone who drives a vehicle for hire and reward in the UK. But how much does it actually cost? On average, taxi insurance costs between £1,500 and £3,500 per year, but this can vary a lot based on factors like location, vehicle type, experience, and cover level.
Key points
How Much Is Taxi Insurance Per Month?
If you’re paying monthly, expect to pay between £130 and £300 per month for taxi insurance. Monthly payments are a popular option for many drivers but often include interest or finance charges, making them slightly more expensive overall than paying annually.
What Affects the Cost of Taxi Insurance?
Several factors influence how much you’ll pay:
- Type of taxi – Public hire (e.g. black cabs) typically costs more than private hire due to higher risk and city-based driving.
- Location – Insurance in busy urban areas like London or Manchester is usually higher.
- Driver history – A clean licence and strong no-claims record can help reduce your premium.
- Vehicle make and model – Newer or more expensive vehicles generally cost more to insure.
- Annual mileage – The more time you spend on the road, the higher the risk (and premium).
- Level of cover – Third party, third party fire and theft, or fully comprehensive policies all vary in price.
Ways to Reduce Your Taxi Insurance Costs
- Build a no-claims bonus to get discounts year-on-year
- Take out a fleet policy if you run multiple taxis
- Consider paying annually to avoid finance charges
- Increase your voluntary excess (if you can afford to cover it)
- Choose a vehicle with good safety and security features
- Compare multiple quotes before you renew or switch
Why is taxi insurance more expensive than regular car insurance?
Taxi drivers spend more time on the road and carry passengers for hire, which increases the risk for insurers.
Can I pay monthly for taxi insurance?
Yes. Many providers offer monthly payment plans, but these often come with interest.
Does my location really affect my premium that much?
Yes. Taxis operating in busy or high-crime areas usually attract higher premiums.
What kind of cover do I need?
At a minimum, you’ll need a policy that includes hire and reward cover. Many drivers opt for fully comprehensive policies for peace of mind.
In Summary
- Annual taxi insurance typically ranges from £1,500–£3,500
- Monthly payments can cost between £130–£300 depending on your circumstances
- Factors like vehicle, driving history, and location all impact your premium
- Compare quotes to find a policy that matches your driving needs and budget
Compare Taxi Insurance & Find the Best Deals
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