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Taxi Insurance: What is it and why do you need it?

November 27, 2023

As a taxi business owner or driver in the UK, it is essential to have insurance specifically designed for taxis. Whether you are operating a private hire or public hire service, taxi insurance is necessary to cover your vehicles, your passengers, and your livelihood. Not all taxi businesses are the same and neither are all taxi insurance policies. Taxi Insurance can range from cover for minibuses, people carriers, MPVs, chauffeurs, saloons or a fleet of taxi vehicles and more.

Insurance for Taxis

Firstly, Taxi Insurance is necessary to cover your vehicles. Taxis, unlike regular cars, are used for commercial purposes and therefore, face a higher risk of accidents due to their increased time on the road compared to regular cars.

Taxi insurers typically provide three levels of cover, in line with the same three levels available when insuring an ordinary car:

  • Third party Only
  • Third-party, fire and theft
  • Fully comprehensive.

A fully comprehensive Taxi Insurance policy offers the highest level of protection, including protection for the vehicle itself, ensuring cover for any damages, or repairs. Furthermore, it helps to safeguard the driver and your passengers, covering legal liabilities in case of injuries sustained during a road traffic accident.

What is Taxi Insurance?

Public Hire and Private Hire Insurance

Public hire taxis are typically those which can be hailed down by customers on the street or picked up at a taxi rank and are therefore licensed to pick up passengers without prior booking. It covers all vehicles licensed as Hackney Carriage and can also be referred to as black cab insurance.

If you own a private hire taxi or business you will need insurance for your private hire vehicles to ensure that they are adequately covered. These types of taxis require advanced bookings, such as airport pick-ups or minicabs, and passengers cannot flag them down on the street.

Having Private Hire or Public Hire Taxi Insurance for your vehicles can also include optional add-ons.

These can include:

  • Taxi Breakdown Cover
  • Replacement Vehicle Cover
  • Legal expenses
  • Public Liability
  • Excess Protection
  • Taxi Replacement Hire

Taxi Fleet Insurance

Regardless of the size of your taxi fleet or what type of vehicles it consists of, opting for Taxi Fleet Insurance for your fleet of vehicles can prove advantageous for your company, helping you save both time and money. It can provide cover for third-party liability, theft, fire, and damage to your vehicles, ensuring that you and your passengers are protected while in transit.

Why do you need Taxi Insurance?

As a taxi driver or taxi business owner, you know that getting from point A to point B is not always a straightforward journey. However, with the right insurance for your taxi vehicles, you can have the peace of mind that comes with knowing that you, your passengers, and your vehicle are protected in the event of any unexpected incidents.

Moreover, Taxi Insurance can help to provide financial security. Accidents, damages, or theft can lead to significant financial losses, especially if you have to cover the costs out of pocket. Comprehensive Taxi insurance can ensure that you are protected against such unforeseen circumstances, so you can focus on your business without worrying about unexpected expenses and can provide a safe and reliable service to your passengers.