What’s the Difference Between Private Hire and Public Hire Taxi Insurance?
Table of Contents
Private hire insurance is for drivers who only accept pre-booked fares (like minicabs or Uber), while public hire taxi insurance is for taxis licensed to pick up passengers from the street or taxi ranks (such as black cabs and Hackney carriages). The insurance you need depends entirely on how you pick up passengers and the licence you hold. Getting this right not only keeps you legal, but also ensures you and your passengers are properly protected. Below, you’ll find a thorough explanation of how each type of cover works, what’s included, and why choosing the correct insurance matters for your livelihood and your licence.
Key points
Here are the core facts about private hire and public hire taxi insurance:
- Private hire insurance is for drivers who only take pre-booked journeys, including minicabs, chauffeur vehicles, and Uber or app-based drivers.
- Public hire insurance is for taxis that can legally pick up passengers from the street or taxi ranks, such as black cabs and Hackney carriages.
- Policies for both types are specifically designed for “hire and reward” use, which standard car insurance does not cover.
- Insurers assess risk differently for each type, and local authority licensing is strictly enforced—having the wrong insurance could make you uninsured.
- Comprehensive protection for the vehicle, passengers, and public liability is available for both private and public hire, but terms, costs, and add-ons may differ.
Understanding these categories helps you stay compliant, protected, and confident in your day-to-day work.
What Is Private Hire Taxi Insurance?
Private hire taxi insurance is designed for vehicles that can only carry passengers who have booked their journey in advance. This includes classic minicabs, executive cars, chauffeur services, and vehicles driven for ride-hailing apps such as Uber or Bolt. The defining feature is that every trip must be pre-booked through a licensed private hire operator, app, phone, or booking office—drivers are not allowed to pick up customers who flag them down on the street or wait at a taxi rank.
- Who needs it? Drivers who only ever take advance bookings, including app drivers and chauffeur services.
- Vehicles covered: Everything from standard saloons and estates to MPVs, executive vehicles, and adapted cars for accessibility.
- Licensing: You must hold a valid private hire badge and vehicle licence from your local authority, which sets its own standards for safety, age, signage, and inspections.
- Insurance features: Protection for hire and reward, passenger liability, public liability, theft, fire, accidental damage, legal expenses, and options like replacement vehicle cover.
- Common use cases: Uber, Bolt, Addison Lee, traditional minicab offices, chauffeur firms, and airport transfer operators.
If you’re working via a platform, taxi insurance for Uber drivers is tailored to meet app requirements and local licensing rules.
Private hire policies tend to be less expensive than public hire because the driver does not take street hails or rank fares, which lowers the exposure to high-frequency, short-distance, and late-night risks.
What Is Public Hire Taxi Insurance?
Public hire taxi insurance is for drivers and vehicles licensed to pick up any passenger on the spot, without a prior booking. This category includes London black cabs, Hackney carriages, and other taxis marked and licensed for street hails and taxi ranks. These vehicles are subject to stricter local authority checks and often must meet specific standards for accessibility, size, signage, and even colour or design.
- Who needs it? Anyone driving a taxi that is allowed to pick up fares from the street or at taxi ranks, with or without advance bookings.
- Vehicles covered: London black cabs, Hackney carriages, purpose-built taxis, and any vehicle licensed for public hire by the local authority.
- Licensing: Requires a public hire badge and strict vehicle inspections, with additional requirements for accessibility, CCTV, and visible fare meters in some areas.
- Insurance features: Hire and reward cover, higher passenger and public liability limits, damage and theft protection, plus optional add-ons for legal cover and breakdown.
- Specialist cover: Black cab insurance is available for London cabs and iconic Hackney vehicles with tailored protection for city centre risks.
Public hire drivers are exposed to more unpredictable working patterns – multiple short fares, night shifts, city centre traffic, and high passenger turnover—so public hire insurance is usually more expensive than private hire, reflecting the increased risk profile.
How Do Private Hire and Public Hire Policies Differ in Practice?
The most important difference between private hire and public hire taxi insurance is how you are legally allowed to pick up passengers. If you accept any street or rank fares without public hire insurance, you risk invalidating your cover and breaking the law. The table below summarises key distinctions:
- Booking method: Private hire must be booked in advance, public hire can be hailed or taken from a rank or pre-booked.
- Vehicle markings: Public hire taxis are usually clearly marked, have a taxi light, and may display livery or council plates. Private hire vehicles often have minimal or no signage, as per local rules.
- Licence requirements: Your badge and vehicle licence must match your insurance type—councils may refuse to issue or renew your badge without proof of the correct cover.
- Cover features: Both policy types can include legal expenses, breakdown cover, and replacement vehicles, but liability limits and premium levels may differ depending on the risks involved.
- Compliance risk: Using the wrong insurance for your work means you could be uninsured in a claim, face prosecution, and lose your taxi badge.
It is always your responsibility to ensure your insurance matches your licence, work pattern, and local authority requirements. Insurers may request evidence of your badge and council paperwork when you apply for a policy.
What Happens If You Use the Wrong Type of Taxi Insurance?
If your insurance does not match your badge and the way you work, your cover can be declared void. This can mean claims are refused, you have to pay for all repairs and compensation yourself, and you may even face prosecution by your local authority. Councils perform regular enforcement checks and require valid evidence of the correct insurance before renewing badges or plates.
- Using private hire insurance for street hails or rank fares is illegal, and you risk a ban or fine.
- Driving a public hire taxi on only a private hire policy could leave you uninsured for high-risk work.
- If you’re unsure which you need, your council licensing team or a specialist taxi broker can advise.
For a clear overview of your choices, you can compare taxi insurance options for both private and public hire drivers at Clean Green Compare.
In Summary
Private hire taxi insurance is for pre-booked journeys only, such as minicabs, Uber, or app-based drivers, while public hire taxi insurance is for vehicles that can pick up passengers without bookings, like black cabs and Hackney carriages. Both are designed for hire and reward but differ in risk, cost, and compliance requirements. Always make sure your badge, licence, and policy type are fully aligned, as this protects you, your business, and your passengers. If you’re looking for specialist cover, see private hire insurance, public hire insurance, taxi insurance for Uber drivers, black cab insurance, or compare all policies at taxi insurance on Clean Green Compare.
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): 6
Posts found (all): 6
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 ) ) )
