Private Hire Insurance: Licence, Cover And Bookings
Private hire insurance covers a licensed private hire vehicle (PHV), often called a minicab, while you carry passengers who've booked in advance. Every private hire journey has to be booked through a licensed operator, whether it comes from a local firm, an airport transfer, a school contract or an app. New to the trade? Start with what cover private hire and taxi drivers need.
- Who licenses youTfL Or Your CouncilTfL in London; your local council elsewhere in England and Wales.
- Cover must includeHire And RewardIn London, when the car is licensed and whenever it's used as a PHV.
- BookingsPre-Booked JourneysThrough a licensed operator. Ranks and street hails are for licensed taxis.
- Driver, car and operator licencesSame AuthorityThe driver licence, vehicle licence and operator licence all need to be issued by the same authority.
In London you'll still hear it called PCO insurance. Scotland and Northern Ireland have a different licensing process.
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What Is Private Hire Insurance?
Private hire insurance is motor insurance for a car you use to carry passengers on pre-booked journeys for hire. In law, a private hire vehicle is a car with fewer than nine passenger seats that's hired out with a driver and isn't a licensed taxi or a bus.
You'll also hear it called PCO insurance. TfL's taxi and private hire department used to be the Public Carriage Office (PCO). TfL no longer uses that name, but the cover is the same. In London, TfL says every PHV needs hire or reward insurance when it's licensed and whenever it's used as a PHV. More in what PCO insurance means.
Outside London, your local council licenses private hire drivers, cars and operators, and each needs its own licence. The council won't license the car unless there's an insurance policy in force for how it's used.
Other Types Of Taxi Insurance
Who Can Get Private Hire Insurance?
Anyone licensed to drive private hire can get it. Outside London, a council can't grant a private hire driver licence until you've been licensed to drive a car for at least 12 months. Insurers may price newer drivers higher. More in private hire insurance for new drivers.
Cover For Pre-Booked Work
A private hire car can only take pre-booked jobs, so your policy is written around them. It needs to include hire and reward cover for private hire. Delivering food or parcels as well is courier work, with its own courier hire and reward insurance.
Your Licensing Area Matters
In England your driver licence, car and operator must all be licensed by the same authority. Insurers ask which one, as local conditions can differ. Our guide explains the insurance needed for a PHV licence, in London and with councils elsewhere in England.
What Cover Can You Get With Private Hire Insurance?
Private hire policies come in the usual three levels. The difference shows when your own car is damaged or stolen.
| Feature | Comprehensive | Third Party, Fire & Theft | Third Party Only |
|---|---|---|---|
| Injury to other people and damage to their property | Yes | Yes | Yes |
| Fire damage to your PHV | Yes | Yes | No |
| Theft of your PHV | Yes | Yes | No |
| Accident damage to your own PHV | Yes | No | No |
| Windscreen and glass | Often included | Optional | No |
| Driving off duty (social, domestic and pleasure) | Check policy | Check policy | Check policy |
Policy features, benefits, terms and conditions vary among insurance providers, so always check the policy wording.
Extras Worth Asking About
Replacement Plated Car
Some insurers offer a replacement while yours is repaired. It can only take fares if it's licensed as a private hire vehicle, so check it's plated.
Breakdown Cover
Roadside help and recovery, so a breakdown doesn't lose you the rest of your bookings.
Legal Expenses Cover
Help with legal costs, for example to recover lost earnings after an accident that wasn't your fault.
Cover Tip: In London, TfL encourages you to carry details of the car's hire or reward policy whenever you're working, and you must show them to the police if asked.
What Private Hire Policies Usually Exclude
These are the common limits to check in a private hire policy. Your policy wording has the full list.
- Street Hails And Rank Pickups - A private hire car can only be pre-booked. Government guidance warns passengers that an unbooked private hire car will not be insured.
- Drivers Not On The Policy - If someone who isn't named drives the car, the insurer may decline the claim.
- Undeclared Operators Or Apps - Tell your insurer about every operator and app you take bookings from, as undeclared work may affect a claim.
- Work Outside Your Licence - In England the driver, car and operator must be licensed by the same authority. Jobs your licence doesn't allow may not be covered.
- Personal Use If Not Included - Some policies leave out social, domestic and pleasure use. Check before you drive off duty.
What Affects The Price Of Private Hire Insurance?
Insurers price private hire cover on the driver, the car and the work. These are the factors that matter most for minicab and PHV driving.
| Key factor | Impact on your price |
|---|---|
| Licensing area | Where you're licensed and where you work may change the price, as claim patterns differ by area. |
| Operators and apps | Which firms and apps you take bookings from, and how many, may affect the quote. |
| Working mileage | More miles on the meter usually means a higher price. |
| The car | Higher-value or adapted cars, such as wheelchair-accessible models, may cost more to repair. |
| Your record | Claims, points and convictions may raise the price or narrow the choice. |
| Cover level and excess | Comprehensive cover with a low excess usually costs more. |
Price Insight: In London, a PHV licensed for the first time must be zero emission capable and meet Euro 6. Quote the exact car you'll license, as its model and value feed into the price.
Our Expert On Private Hire Insurance
Private hire cover is simpler than it looks once you remember one rule: the job has to be booked. Every fare should come through a licensed operator, and your policy should know about every operator and app you work for.
Where drivers get caught out is the gap between what they do and what they've declared, like picking up jobs from a second app without telling the insurer, or letting someone drive who isn't on the policy.
Before you renew, check your certificate still matches your licence, your car and every way you take bookings.
About this page
This page was written by Ian Beevis, Co-Founder and Insurance Expert, and reviewed by Susan Difford, Co-Founder and Personal Lines Expert. Updated 20 October 2026.
Private Hire Insurance Questions
Do I Need Private Hire Insurance To Drive A Minicab?
Yes. A minicab is a licensed private hire vehicle. To license one, GOV.UK says you need insurance that covers private hire and names you as the driver. In London, TfL says it needs hire or reward cover when licensed and whenever it's working.
Can I Pick Up Street Hails On Private Hire Insurance?
No. A private hire car can only be pre-booked. Only licensed taxis can use a rank or be hailed in the street, and that work needs a public hire taxi policy.
Do I Need Private Hire Insurance When I'm Not Working?
Not in London. TfL says a PHV needs hire or reward cover when it's licensed and whenever it's used as a PHV, and its old rule requiring it at all times no longer applies. Outside London, check your council's licence conditions. Either way, you still need insurance to drive it off duty.
Does Private Hire Insurance Cover Personal Use?
Not always. Some policies include social, domestic and pleasure use and some don't. Some councils, such as Winchester, ask for a certificate covering both. Read using a private hire car for personal use.
Does Private Hire Insurance Cover The Car Or The Driver?
Both. The policy covers the car while it works as a private hire vehicle, and GOV.UK says it must include you as the named driver. Tell the insurer about everyone who'll drive it.
Do Private Hire Drivers Need Public Liability Insurance?
There's no law that says every driver must have it, but licensing authorities can attach their own conditions, so check yours. In London, operators whose premises are open to the public must hold public liability cover of at least £5 million.
Can I Get Private Hire Insurance For A Few Weeks?
Check your licensing authority first. Some councils set a minimum cover period: Bedford, for example, wants cover for at least the first calendar month of the licence. Pay as you go cover is in the Other Types Of Taxi Insurance table near the top of this page.
What Happens After I Submit My Details?
Your details go to a panel of insurers and brokers, who come back with the quotes they can offer. You compare them and decide whether to go ahead.
What To Have Ready Before You Compare Quotes
Have these to hand before you get quotes.
- Your private hire driver licence and the council or TfL that issued it
- The car's registration, value, seats and any adaptations
- Every operator and app you take bookings from
- Each driver's licence, claims and convictions
- The cover level and excess you want
Compare Private Hire Insurance Quotes
Don’t have your registration number? No problem, click here.
Sources For Private Hire Insurance Facts
- GOV.UK - Private Hire Vehicle Operator Licence - Why a PHV can only be pre-booked (checked 17 Oct 2026).
- TfL - Private Hire Driver Handbook (PDF) - The hire or reward insurance a London PHV needs (checked 17 Oct 2026).
- GOV.UK - Statutory Taxi And Private Hire Vehicle Standards - Pre-booking and the triple licensing lock in England (checked 17 Oct 2026).
- TfL - Emissions Standards For PHVs - The rules for cars licensed in London for the first time (checked 17 Oct 2026).
- TfL - Private Hire Operator Handbook (PDF) - The £5 million public liability minimum for London operators with premises open to the public (checked 19 Oct 2026).
- Winchester City Council - Private Hire Vehicle Licence - The insurance certificate covering hire and reward and personal use (checked 19 Oct 2026).
- Bedford Borough Council - Taxi And Private Hire Policy (PDF) - Cover for at least the first calendar month of the licence (checked 19 Oct 2026).
