Public Hire Taxi Insurance: Licence, Cover And Fares
Public hire taxi insurance covers a licensed taxi, also called a hackney carriage or, in London, a black cab, while it carries paying passengers. Unlike a private hire car, a taxi can be hailed in the street or pick up at a rank, and taxi drivers can also do work booked by an operator. New to the trade? Start with what cover taxi and private hire drivers need.
- Who licenses youTfL Or Your CouncilTfL in London; the local council if you work outside London.
- Cover must includeTaxi HireAnd you as the named driver, before the cab can be licensed.
- FaresRanks, Hails And BookingsRanks and hails only where you're licensed; booked journeys can go anywhere.
- London driversThe KnowledgeTfL taxi drivers must pass the Knowledge of London.
Scotland and Northern Ireland have a different licensing process.
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What Is Public Hire Taxi Insurance?
Public hire taxi insurance is motor insurance for a licensed taxi you use to carry paying passengers. It's the cover for taxi licence work, whether that's a black cab in London or a hackney carriage in a town elsewhere.
What sets it apart is plying for hire. A taxi can stand at a rank or be hailed in the street, which a private hire car can't. You can only do that in the area or zone where the taxi is licensed, but booked journeys can go anywhere.
In London, TfL licenses black cabs and their drivers. Everywhere else in England and Wales it's the local council, whether you drive a hackney carriage in Liverpool, Manchester or a smaller town. The council can also attach its own conditions to a vehicle licence, so check yours.
Other Types Of Taxi Insurance
Who Can Get Public Hire Taxi Insurance?
Anyone with a taxi (hackney carriage) driver licence who takes fares from ranks or the street. If you share the cab, every driver who uses it needs to be named on the policy.
London Black Cab Drivers
Licensed by TfL. Green badge drivers can pick up anywhere in London; yellow badge drivers work local suburban areas.
Drivers Outside London
Licensed by the local council in towns and cities outside London. Your driver licence and your cab's vehicle licence must come from the same authority, and that's the area where you can work the ranks.
What Cover Can You Get With Public Hire Taxi Insurance?
Public hire policies come in the usual three levels. The difference shows when your own cab is damaged or stolen.
| Feature | Comprehensive | Third Party, Fire & Theft | Third Party Only |
|---|---|---|---|
| Rank and street pickups in your licensed area | Yes | Yes | Yes |
| Booked jobs from an operator | If declared | If declared | If declared |
| Injury to other people and damage to their property | Yes | Yes | Yes |
| Fire damage to your cab | Yes | Yes | No |
| Theft of your cab | Yes | Yes | No |
| Accident damage to your own cab | Yes | No | No |
| Driving off duty (personal use) | 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
Public Liability
Covers claims if a passenger or member of the public is hurt, or their property damaged, in a way that isn't caused by driving, such as a fall getting out of the cab. Often sold as an optional extra.
Breakdown Cover
Recovery for your cab, so a breakdown on a busy London or city shift doesn't end the day.
Replacement Licensed Taxi
Some insurers offer a licensed cab while yours is repaired, subject to availability. A courtesy car that isn't a licensed taxi won't keep you earning.
Cover Tip: If you also take booked work through an operator, declare it at the start, so the policy covers it alongside your rank work.
What Public Hire Policies Usually Exclude
These are the common limits to check in a public hire policy. Your policy wording has the full list.
- Ranks Outside Your Licensed Area - A taxi can only ply for hire in the area or zone where it's licensed, though booked journeys can go anywhere.
- Drivers Not On The Policy - If you share the cab, every driver needs to be named on the policy.
- Undeclared Booked Work - Taxi drivers can take work booked by an operator. Tell your insurer about every operator you take bookings from.
- Personal Use If Not Included - Not every taxi policy covers off-duty driving, so check before you use the cab privately.
- Wear And Tear - Breakdowns and mechanical faults aren't usually covered unless you add breakdown cover.
What Affects The Price Of Public Hire Taxi Insurance?
Taxi work means long shifts and passengers who haven't booked, and insurers price that in. These are the factors that matter most for cab drivers.
| Key factor | Impact on your price |
|---|---|
| Where you work | Busy ranks in London or other big cities may be priced differently from quieter towns. |
| The cab | A purpose-built or newer zero emission capable cab may cost more to repair or replace. |
| Shifts and mileage | More hours and miles on the road usually means a higher price. |
| Shared drivers | Every named driver's age and record is part of the price. |
| Cover level and excess | Comprehensive cover with a low excess usually costs more. |
Price Insight: In London, a cab's age limit caps how long it can be licensed, which may affect what it's worth to insure. Quote the exact cab you'll license.
Our Expert On Public Hire Taxi Insurance
A taxi licence lets you do something a private hire driver can't: take a fare from the kerb or the rank with no booking. That's the risk the insurer is pricing, so make sure your policy says public hire or hackney carriage, not private hire.
Plenty of taxi drivers also take booked work through an operator, which the rules allow, so tell your insurer about that too.
In London the cab itself is tightly controlled: a taxi licensed for the first time since 2018 has to be zero emission capable, and TfL sets age limits, so the cab you insure today has a set working life. Insure it for what it's worth to your business, and check the replacement vehicle terms.
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.
Public Hire Taxi Insurance Questions
What's The Difference Between A Taxi And A Private Hire Car?
A taxi can be hailed in the street or use a rank, and can take booked jobs too. A private hire car can only be pre-booked. Your insurance has to match the licence you hold. More in private hire vs public hire taxi insurance.
Can I Do Pre-Booked Jobs On Public Hire Insurance?
Usually, if you declare them. GOV.UK says taxi drivers can do work booked by an operator. Tell your insurer, so the policy covers booked jobs as well as ranks and street hails.
Is A Black Cab The Same As A Hackney Carriage?
Yes. TfL's taxi driver handbook says licensed taxis are also called hackney carriages, black cabs and cabs. In London TfL licenses them; elsewhere it's your local council. Either way, you compare public hire taxi cover.
Do Taxi Drivers Need Public Liability Insurance?
It depends on your council. Public liability covers injury or damage that isn't caused by driving, and it's often sold as an optional extra. Councils can attach conditions to a taxi licence, so check whether yours asks for it. In London, TfL's £5 million rule is for private hire operators with premises open to the public.
Do I Need The Knowledge To Drive A Black Cab?
Yes, in London. TfL says its taxi drivers must pass the Knowledge of London. Green badge drivers can pick up anywhere in London; yellow badge drivers work local suburban areas. Outside London, you apply to your local council.
Is There An Age Limit For London Black Cabs?
Yes. TfL's limit is 15 years for zero emission capable, Euro 6 and newly LPG-converted taxis, and 12 years for Euro 3, 4 and 5 diesel taxis. Taxis licensed for the first time since 1 January 2018 have had to be zero emission capable.
Do Black Cabs Pay The Congestion Charge?
No, while they're licensed. TfL says taxis are exempt from the Congestion Charge when actively licensed by TfL. A cab comes off the exempt list when its licence is surrendered, expires or is revoked.
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 taxi driver licence and the council or TfL that issued it
- The cab's registration, make, model, value and its taxi vehicle licence
- Where you work, and how much is rank and street work or booked jobs
- Everyone who drives the cab, with their licence, claims and convictions
- The cover level and excess you want
Compare Public Hire Taxi And Black Cab Insurance Quotes
Sources For Public Hire Taxi Insurance Facts
- GOV.UK - Taxi And Private Hire Driver Licence - Who licenses taxi drivers, the same-authority rule and the different process in Scotland and Northern Ireland (checked 18 Oct 2026).
- GOV.UK - Vehicle Licences For Taxis Or Private Hire Vehicles - The insurance a taxi vehicle licence needs, and council licence conditions (checked 18 Oct 2026).
- GOV.UK - Private Hire Vehicle Operator Licence - Ranks and street hails, and booked work for taxi drivers (checked 18 Oct 2026).
- GOV.UK - Local Transport Authorities And The Licensing Of Taxis And Private Hire Vehicles - Plying for hire only in the licensed area or zone, booked journeys anywhere (checked 17 Oct 2026).
- TfL - Taxi Driver Handbook (PDF) - Licensed taxis are also called hackney carriages and black cabs (checked 18 Oct 2026).
- TfL - What To Expect From Your Journey - The Knowledge of London and green and yellow badges (checked 18 Oct 2026).
- TfL - Emissions Standards For Taxis - Zero emission rules and age limits for London cabs (checked 18 Oct 2026).
- TfL - Taxis, PHVs And The Congestion Charge - The exemption for licensed black cabs (checked 18 Oct 2026).
- TfL - Private Hire Operator Handbook (PDF) - The £5 million public liability minimum for London operators with premises open to the public (checked 17 Oct 2026).
