Frequently Asked Questions

Taxi insurance is the legal protection required by all drivers to cover themselves while driving a taxi.

This type of insurance covers the vehicle, any passengers and other drivers on the road whilst the taxi is in operation.

Anyone that drives a taxi is required by law to have relevant and up to date taxi insurance.

If you do drive a taxi without the required taxi insurance, you are committing a crime which can result in severe penalties.

The price of the premiums and the type of taxi insurance required will depend on the driver’s personal circumstances and the type of taxi involved.

The main reason that taxi insurance is typically more expensive than standard car insurance is because a taxi will usually be on the road for much longer periods of time.

The more miles you drive, the greater the likelihood of an accident occurring and therefore the more risk incurred by the insurance company in providing the cover.

Furthermore, taxis can be a lot bigger than standard cars and may therefore fit into higher car insurance groups. This can also increase the price of the standard premium.

There are many different types of taxi insurance, and it is worth spending a little time researching the best type of taxi insurance for you to make sure you get the right cover.

These can include:

• Private Hire Taxi Insurance: Insurance for taxi drivers who take bookings and do not pick up fares from the side of the road.
• Public Hire Taxi Insurance: Cover for taxis which are used to pick up ad-hoc fares when they are hailed.
• Black Cab Insurance: Traditionally for hackney carriages in London, this type of insurance is now available across the country to anyone who drives a black cab.
• Minibus Insurance: Available with both public and private hire options for taxis that have 10 seats or more.
• Minicab Insurance: Offering the same benefits as taxi insurance for drivers of minicabs.
• Taxi Fleet Insurance: A cost effective way of insuring a taxi service that comprises of more than one vehicle.

Public Hire:

Public hire taxi insurance is for taxis that can be hailed directly from the street and do not require the fare to pre-book their ride. Specialist taxis such as hackney cabs or black cabs in London would come under this category, but so too would public hire taxis in Manchester or anywhere else in the country.

Private Hire:

Private hire taxi insurance is for taxi drivers who require their fares to pre-book. This type of insurance is ideal for taxi drivers who work under a taxi operator that coordinates their fares and sends them on specific jobs. However it does not provide cover if a fare is picked up from the street.

There are three general types of Taxi Insurance Policy:

Policy Only: This is the most basic form of cover and is therefore usually the cheapest. The more names added to this policy, the more expensive the insurance becomes.

Named Driver Policy: Usually considered the ‘middle of the road’ taxi insurance policy. This type of insurance for taxis is used for a single driver who is named on the policy. No other individual is insured on this document to drive the vehicle.

Any Driver Policy: Under this insurance agreement, any qualified driver is legally insured to drive the taxi. This is generally the most expensive type of insurance for a taxi but is also the most comprehensive.

Some companies that provide taxi insurance will allow a no claims bonus gained from a private vehicle to be transferred onto a taxi insurance policy. Compare prices of all taxi insurance providers to see whether such a facility will make your overall premiums lower.

Taxi insurance companies provide cheaper premiums for those that can prove a lower risk than the standard taxi driver including:

• The Experience of the Driver: The longer you have been driving a taxi, the lower the associated insurance premiums are likely to be.
• The Number of Drivers to be Insured on the Policy: The more drivers named on a policy, the greater the cost of the insurance. However, the more names, the lower the cost of insurance when calculated per person.
• The Age of the Driver: Drivers under the age of 25 are considered higher risk which can make their taxi insurance premiums significantly higher.
• Any Criminal Convictions Held: Though driving convictions are the greatest priority, even an individual with a minor conviction unrelated to driving can experience much more costly taxi insurance premiums.
• The Number of Previous Accidents: Someone who has been involved in an accident in the past is statistically more likely to have an accident in the future, making any driver with a previous history of accidents a higher risk when offering taxi insurance. Stay claim free for more than 4 years and premiums costs could reduce by as much as 75%.
• The Level of Voluntary Excess Offered: As with any type of insurance, the higher the level of excess you are willing to pay, the lower the cost of your monthly premiums.
• The Insurance Group of the Car: If you want to reduce your taxi insurance premiums, consider using a car in a lower insurance group.
• The Level of Anti-Theft Protection: The greater the care you take to ensure your car is protected against theft, the less likely the risk to your insurance provider and therefore the lower the related premiums should be.

By searching for the cheapest taxi insurance online, it is possible to significantly reduce the cost of premiums and obtain a highly competitive rate for any taxi cover.