What does Taxi Insurance cover?

Like any type of insurance, taxi insurance will vary between policies and providers but the essential features often remain the same, making it worth having a general understanding of the question ‘what does taxi insurance cover?’

As the name suggests, taxi insurance is designed to cover vehicles used as a taxi, including both public and private hire vehicles, so whether you’re a seasoned professional or aspiring Uber driver, taxi insurance will keep you protected.

Taxi drivers with personal vehicles may already be familiar with the three main types of motor insurance available, and these are no different for taxi insurance.
Third party only (TPO) is the minimum required by law and covers all third party liabilities should an accident occur. The next step up is third party, fire & theft (TPFT), which provides the same protection as TPO but with the inclusion of fire and theft cover (we bet you didn’t see that coming!).

Finally, comprehensive insurance offers the same cover as TPFT but includes protection for you and your vehicle, providing, you guessed it, the most comprehensive level of cover.
“Whether you’re a seasoned professional or aspiring Uber driver, good taxi insurance will have you covered.”

With more than 20 years experience providing insurance for taxis, at ChoiceQuote we understand that the varying factors associated with the industry can make the process of securing the right protection confusing.

Thankfully, the ChoiceQuote experts have put together this handy guide to help you understand the cover available so you can choose the right policy for your business.

What does taxi insurance cover?

Windscreen cover

As with personal motor insurance, taxi insurance provides cover for windscreens for anything from a small chip that needs filling to a large fracture that requires a full windscreen replacement.

Social, domestic and pleasure

So long as you’re a registered taxi driver, you can still use your vehicle for social, domestic and pleasure purposes in addition to hire. However, rules can differ depending on your local council, so it’s always best to check in advance.

“Even if you’ve only received your taxi badge in the last two years, ChoiceQuote is happy to provide your insurance.”

Public and private vehicles

Most insurance providers cover both private and public hire taxis but taxi insurance quotes may differ between the two. Public hire vehicles are vehicles that can be hailed in the street, booked in advance or hired from a taxi rank, such as Hackney carriages.

Private taxis, on the other hand, can only be booked in advance. Uber drivers would fall into the latter category.

Insurance differs between the two so you’ll need to understand which category your business falls under.

New badge holders

Don’t live in fear of excessive taxi insurance quotes – even if you’ve only received your taxi badge in the last two years, ChoiceQuote is happy to provide protection.

Various vehicle types

Our insurance protects just about any vehicle from regular saloons and black cabs to large MPVs. As long as you carry no more than eight passengers, taxi insurance will have you covered.

Need cover for a larger vehicle? Our minibus insurance might be a better choice.


You certainly wouldn’t be the first person to use the wrong fuel and we’ve no doubt you won’t be the last, but when you’re running a taxi service it’s important to know you can get back up and running quickly. Taxi insurance will sort you out.

What taxi insurance doesn’t cover

You might be able to add the below features to your taxi insurance policy but they’re unlikely to come as part of the default policy.

As with all insurance, this is a balance between getting a cheap taxi insurance quote, and getting the cover you need. So have a quick read over to check you’re insured for what you think you are – if you’re taking out a new policy, talk carefully to your advisor so you’re confident you have the coverage you need.

Public liability

As a taxi driver you’re likely to be interacting with the public on a daily basis, so public liability insurance is a valuable addition to your policy that could protect you against accidents and claims.

“If you need cover for taxi premises you’ll require taxi base insurance.”

Driving alternative vehicles

Unlike comprehensive personal motor insurance cover, comprehensive taxi insurance does not protect you if you drive another vehicle with comprehensive cover.

Taxi base protection

If you need cover for taxi premises you’ll require taxi base insurance. This cover includes protection of your buildings, employers’ liability insurance and public liability insurance to cover your site.

Get a cheap taxi insurance quote

Just as taxi drivers build an intricate knowledge of their local area, ChoiceQuote’s experts have developed an in-depth understanding of the ins and outs of taxi insurance since launching our cover in 1995.

If you’re unsure about the type of cover you might need, call us on 01625 885046 to discuss your requirements with our insurance experts or fill in our quick online form to receive your quote.

How much does taxi insurance cost?

  • Taxi insurance prices can vary significantly, but most drivers pay between £1,000 and £4,000 per year.
  • Quotes depend on a number of factors including mileage, vehicle type, location and years of experience. Your quote will also be influenced by the type of hire you offer i.e. public vs. private hire.
  • Don’t forget – if you’re a registered taxi driver your taxi insurance will cover your vehicle for social, domestic and pleasure use in addition to hire services, so you only need to insure your vehicle once.

What is taxi fleet insurance?

  • Taxi fleet insurance provides taxi cover for three or more vehicles under one policy and is designed for use by taxi companies.
  • Fleet insurance can cover public hire fleets, private hire fleets or mixed fleets of vehicles, so you can build your insurance around your business.
  • If you rent your vehicles to your drivers they can also be covered as part of your taxi fleet insurance policy, as long as the drivers are over the age of 25.