INSURANCE GUIDE Taxi Insurance UK - cover for licensed hackney carriages and private hire vehicles |
TL;DR
- Taxi insurance is a specialist motor insurance product required for any vehicle used as a licensed hackney carriage or private hire vehicle (PHV).
- All taxis and PHVs must hold hire and reward (H&R) motor insurance as a condition of their vehicle licence from the licensing authority.
- Hackney carriages can ply for hire in the street; PHVs can only accept pre-booked journeys - the insurance and licensing requirements reflect these different operating models.
- Platform-based private hire (Uber, Bolt, etc.) requires the driver to hold their own PHV licence and H&R insurance - platform insurance covers only active trips.
- Annual premiums for taxi insurance range from GBP 1,500 to GBP 4,000 depending on the vehicle, area, and claims history.
Last reviewed: June 2026
KEY FACTS | |
| Legal requirement | Hire and reward (H&R) motor insurance is required by law and as a condition of vehicle licensing for all taxis and PHVs |
| Hackney carriage | Licensed to ply for hire in the street within the licensing authority area - typically black cabs in London and similar in other cities |
| Private hire vehicle | Can only accept pre-booked journeys - cannot be hailed in the street. Platform-based (Uber, Bolt, etc.) and radio-booked cabs |
| Licensing authority | Hackney carriage and PHV licensing in England is by district/borough councils; in London by TfL |
| Platform insurance gap | Uber and Bolt provide insurance only during active trips - the driver needs their own H&R policy for the inter-journey period |
| Annual premium range | GBP 1,500 to GBP 4,000 for a standard saloon taxi or PHV |
What Is Taxi Insurance?
Taxi insurance is specialist hire and reward (H&R) motor insurance for licensed taxis (hackney carriages) and licensed private hire vehicles (PHVs). It covers the vehicle and driver for carrying passengers in exchange for payment and is legally required for any vehicle licensed by a local authority as a taxi or private hire vehicle.
Standard motor insurance does not cover carrying passengers for hire and reward. The Road Traffic Act 1988 requires that motor insurance covers the actual use being made of the vehicle. Carrying passengers for payment is Class 3 (hire and reward) use and requires specific H&R cover. Using a vehicle for taxi or private hire work on a standard motor insurance policy is a criminal offence.
KEY FACTS
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Hackney Carriage vs Private Hire Insurance
Hackney carriages (black cabs in London, similar vehicles in other cities) can legally ply for hire by being hailed in the street or picked up at a taxi rank. Their insurance covers this open plying-for-hire operation. PHVs cannot ply for hire and can only accept pre-booked journeys arranged through a licensed operator. Despite this operational difference, the insurance requirement for both is H&R Class 3 cover - the key difference is how the insurance is rated by insurers (urban black cab use in central London is rated differently from suburban PHV use, for example).
Platform-Based Private Hire: The Coverage Gap
Uber, Bolt, and similar platform-based private hire operators provide insurance to their drivers while a trip is active (from accepting a job to completing the drop-off). During the inter-journey period - when the driver is logged into the platform and available but not on an active trip - the platform insurance does not apply. TfL and other licensing authorities increasingly require PHV drivers to hold their own comprehensive H&R policy that covers the full working period including the inter-journey gaps. Without this, drivers are effectively uninsured during significant periods of their working day.
How Much Does Taxi Insurance Cost?
Annual indicative costs for 2026:
- Standard saloon PHV, experienced driver, suburban area: approximately GBP 1,500 to GBP 2,500
- London PHV or hackney carriage, central London: approximately GBP 2,500 to GBP 4,000
- Older driver or driver with claims history: higher premiums; market may be restricted
- Purpose-built wheelchair accessible vehicle: approximately GBP 2,000 to GBP 4,000
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Disclaimer: This guide is for general information only. Kael Tripton Ltd is not authorised or regulated by the FCA. Always verify details with an FCA-authorised insurer or broker before purchasing. |
Frequently Asked Questions
Do I need separate insurance if I drive for Uber?
Yes. Uber provides fleet insurance during active trips but not during the inter-journey period when you are logged in and available. TfL requires London PHV drivers to hold their own H&R motor insurance covering the full working period. Most PHV licensing authorities in England have similar requirements. Check with your licensing authority and confirm the coverage provided by the platform before driving.
Can I use standard car insurance for taxi work?
No. Standard car insurance (SDP or business Class 1/2) does not cover hire and reward use. Using a standard policy for taxi or PHV work is a criminal offence under the Road Traffic Act 1988 and will result in the insurer refusing any claim that arises during taxi use.
What licence do I need to drive a taxi or PHV?
You need a private hire or hackney carriage driver licence from the relevant licensing authority (your local district council outside London, or TfL in London). You also need a vehicle licence for the specific vehicle and an operator licence (for PHVs). The requirements vary slightly between authorities. In London, TfL licenses drivers, vehicles, and operators separately.
Is taxi insurance more expensive than standard motor insurance?
Yes, generally. Taxi and PHV insurance is more expensive than standard motor insurance because the vehicle is used intensively (typically 8-12 hours per day, 5-7 days per week), in urban environments with higher accident frequency, carrying passengers whose injury claims are covered under the policy. Annual mileage is typically 2-3 times that of a standard private car.
Does taxi insurance cover my passengers?
Yes. H&R taxi insurance covers bodily injury to passengers as third parties under the motor insurance policy. Passenger claims for injury caused by a road accident are covered by the motor policy. The Employers Liability (Compulsory Insurance) Act 1969 is not relevant to passengers - it applies to employees. Passenger protection is provided by the H&R motor insurance and the Road Traffic Act requirements.
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