If you’re considering a move into the gig economy and becoming a taxi or Uber driver then you need to ensure you have the right taxi insurance to protect you and your passengers. 

Regular car or van insurance usually becomes invalid if you’re carrying a paying customer which means you will need a private or public hire policy instead. 

What is taxi insurance? 

Taxi insurance is a specialist vehicle insurance policy that was specifically designed to cover taxi services; it covers you, your passengers and your vehicle and it’s a must have whether you’re driving a black cab, private hire taxi or an Uber. 

It’s a legal requirement to have a valid taxi insurance policy and, depending on what kind of cab you drive, you’ll need a specific policy.

What different types of insurance are there? 

• Public hire taxi insurance

Public hire taxi insurance provides cover for taxis that can be hailed down on the street or picked up at a taxi rank. These taxis can display a taxi sign. 

Only public hire taxi insurance will cover you to pick up customers without a booking.

• Private hire taxi insurance 

Private hire insurance provides cover for taxis that must be pre-booked in advance and includes most minicabs and large multipurpose vehicle taxis like people carriers. 

Private hire insurance is the most suitable cover for drivers working for Uber. While Uber doesn’t like to define itself as a private hire company, insurers see Uber drivers as operating a taxi service and will require you to have appropriate insurance. 

This policy won’t cover you to pick up customers without a booking from places like airports or taxi ranks.

What level of cover do I need?

As with standard motor cover, taxi insurance comes with a variety of options that offer a variety of protection for you as a taxi driver – fully comprehensive; third party, fire and theft; and third party only cover.

There are also other options that are specific to taxi insurance that you should also consider, including:

• Public liability insurance

This protects you if a passenger is injured or their property is damaged either in, entering, or leaving your taxi and will cover any legal or compensation claims that occur as a result. Most taxi insurance policies will include this cover as standard but check the policy carefully as not all do.

• Unlimited mileage

You will be driving a large number of miles each year, so an unlimited mileage policy will ensure you will not be charged for driving too much. Look at how many miles you drive on average each year to work out whether this cover is worth it.

• Breakdown cover

For peace of mind you should consider breakdown cover as this will provide roadside assistance should your taxi break down when carrying passengers or between drop-offs and pick-ups

• Legal cover

Legal cover looks after the legal costs involved if you make a claim against someone or a claim is made against you following an accident

Is there anything I can do to bring down the cost of my taxi insurance?

Taxi insurance is more expensive than a standard motor policy for a number of reasons including: 

• You will drive more miles each year
• You will carry more passengers, increasing the risk of personal injury claims
• Taxi cabs are larger than average cars, so will sit in a higher insurance group
• Taxis often operate during unsociable hours and frequently drive in heavy traffic
• The price of your taxi insurance will depend on the same factors as standard car insurance including the vehicle you drive, where you live, where you keep your taxi and your driving record.

It goes without saying that will want to keep your premiums as low as possible while still being fully protected and the best way to source affordable insurance is to shop around and compare quotes. 

You can also reduce your premiums by building up a no claims history, choosing a sensible vehicle, and by installing security features like CCTV into your cab. 

Here at SEP Insurance we offer a variety of policies at competitive prices so get in touch for a no-obligation quote or call us on 01695 317950.