What are the most common taxi insurance exclusions?
Table of Contents
Taxi insurance policies do not cover everything. Like most types of cover, there are exclusions that limit what you can claim for. Common taxi insurance exclusions include personal use, undeclared drivers, and damage caused by wear and tear.
Knowing what is excluded helps prevent costly surprises if something goes wrong. Understanding the details of your policy ensures you have the right protection for how you drive. To explore wider policy options, you can also compare quotes for taxi insurance tailored to your work.
Key points
Taxi insurance exclusions vary by provider, but here are some of the most common examples:
- No cover for undeclared or unlicensed drivers using your taxi
- Driving without a valid taxi licence, MOT or road tax voids your cover
- Delivery services like food or parcels are often excluded
- Personal use not always included unless stated on your policy
- Wear and tear, and mechanical breakdown are rarely covered
- Theft of cash takings or personal belongings may be excluded
- Damage caused while under the influence of alcohol or drugs is not covered
- Undeclared modifications to your taxi can affect your claim
Every policy will have slightly different rules, so it is always worth checking the full exclusions in your documents.
Am I covered if I use my taxi for food delivery?
Most taxi insurance policies do not include cover for carrying goods like food deliveries or parcels. These activities fall under a different type of hire and reward use that insurers treat as a separate risk.
If you do food delivery for services such as Uber Eats or Just Eat, you should contact your insurer and request to extend or amend your policy. Some insurers offer an endorsement (a policy change) to include this work, but you will likely need to pay more.
If you do not have this cover and use your taxi for deliveries, any claims linked to that activity may be declined, and your policy could be cancelled.
What if someone else drives my taxi and causes an accident?
Your insurance only covers drivers you have declared and who are listed on your policy. If someone else drives your taxi without being named, your insurer will not pay out for accidents they cause.
Even if the other driver has their own car insurance, it will not cover your taxi unless the policy specifically allows commercial taxi use. Letting someone drive your taxi without being properly insured can lead to penalties and your claim being rejected.
If you expect someone else to drive your vehicle for work or emergencies, make sure they are added to your policy ahead of time.
Does taxi insurance include personal use?
Personal use of your taxi is not always included in taxi insurance policies. Some policies only cover your vehicle when you are working, like picking up passengers or waiting for fares.
If you want to use your taxi for social, domestic, and leisure journeys (like visiting family or going to the shops), you need to request this as an additional use type. It is sometimes available as a policy extra, or bundled in with comprehensive cover.
If you drive your taxi for personal errands without this cover, you could be driving uninsured even with a valid taxi policy.
Is normal wear and tear ever covered?
No, taxi insurance does not cover general wear and tear or maintenance issues. These include things like worn tyres, brake pads, or faded paint, which are expected to happen over time.
Mechanical issues such as engine failure or gearbox faults are also usually excluded. If your taxi breaks down because of old parts or poor maintenance, your insurance will not help with repairs.
To protect yourself against breakdowns, you can add breakdown cover or take out a separate warranty policy for mechanical protection.
Will I be covered if I forget to renew my taxi licence?
No, driving without a current and valid taxi licence is a major exclusion. Your insurance requires that you follow all legal and licensing rules for taxi operators in your area.
If your licence has expired or been suspended, your cover is unlikely to apply. Insurers will usually ask for proof of your licence when settling a claim and may reject it if it was invalid at the time of the incident.
Always keep your licensing, MOT, and road tax documents up to date to avoid breaching your policy terms.
What if my cash takings or mobile phone are stolen from the car?
Most taxi insurance policies do not cover theft of cash takings. Some may provide limited cover for personal belongings in the car, but the value is often capped at a low amount, such as £100 or £250.
If a thief breaks into your taxi and steals money or valuables, your insurer may not refund the loss unless you have added-on personal belongings cover. Even then, it might only apply if the items were locked out of sight.
Using a secure cash box or mobile card reader instead of handling cash can reduce your risk and exposure to loss.
Can modifications void my taxi insurance?
Yes, alterations to your taxi that have not been declared to your insurer can affect your cover. Modifications include anything from performance changes to cosmetic updates like alloy wheels or body kits.
If your insurer is unaware of a modification, they may void your policy or decline your claim following an accident. Even non-performance mods like custom lighting or interior changes can matter.
Always tell your insurer about any changes made to your vehicle so they can assess the risk accurately and update your policy if necessary.
Does drinking alcohol affect my insurance?
Yes, if you are caught driving under the influence of alcohol or drugs, your taxi insurance claim is almost always invalid. This exclusion applies to any driver on the policy.
Being over the legal limit, refusing to provide a sample, or having illegal substances in your system can all result in your insurer refusing to pay out following an accident.
Driving responsibly, both from a safety and legal perspective, is essential not only for your passengers but to maintain valid insurance cover.
In Summary
The most common taxi insurance exclusions include unlicensed driving, undeclared deliveries, wear and tear, and theft of personal items. Policies also often exclude claims caused by drink driving or when unauthorised drivers use your taxi.
Always read your policy closely and make sure you are not relying on assumptions. Check out taxi insurance options that match exactly how you use your vehicle to avoid gaps in your cover.
Compare Taxi Insurance Quotes
Don’t have your registration number? No problem, click here.
Our recommended guides
max_posts: 4
posts_per_page in Query: 4
Posts found (paged query): 7
Posts found (all): 7
WP_Query args:
Array ( [post_type] => guide [posts_per_page] => 4 [post_status] => publish [tax_query] => Array ( [0] => Array ( [taxonomy] => guide_category [field] => term_id [terms] => Array ( [0] => 3535 ) [operator] => IN ) ) )
