Cheap Private Hire Taxi Insurance in the UK

Unlike public hire taxis (black cabs) that can be hailed on the street, private hire vehicles or private hire minicab insurance (also known as Hire and Reward) must be pre-booked through apps or phone calls. Yet, both face the risks of accidents, passenger injuries, and damage to vehicles. This is where private hire taxi insurance comes in. It’s a specialized policy designed to provide financial and legal protection for drivers and passengers alike. If you drive for a ride-hailing app like Uber or Bolt in UK, you are legally required to have private hire taxi insurance.

Don’t confuse private hire insurance or minicab insurance with black taxi insurance. Black cabs are licensed for on-street hailing, requiring a specific type of insurance called Public Hire Vehicle (PHV) cover. Private hire insurance, on the other hand, caters to pre-booked minicabs and similar vehicles.

Types of Private Hire Taxi Insurance

The type of insurance you need depends on several factors, such as your specific needs and driving habits. For the cautious driver who prioritizes legal minimums, third-party insurance is a good choice. It covers any damage you cause to other vehicles or property in an accident. However, it doesn’t offer protection for your own vehicle in case of misfortune.

If you’re looking for a bit more peace of mind, third-party fire and theft coverage is a good option because it builds upon the foundation of third-party insurance, adding protection against the threats of fire, theft, and vandalism. This can be particularly valuable if your vehicle is your primary source of income.

If you want the most comprehensive cover, comprehensive insurance is the ultimate choice. It combines the benefits of third-party and fire & theft coverage with the reassurance of protection for your own vehicle in case of damage or loss, regardless of who’s at fault. This can be a wise if you rack up significant mileage or operate in high-risk areas.

Finally, if you carry parcels or other goods for delivery, goods-in-transit insurance protects against damage, loss, or theft of the cargo you carry.

Breakdown Cover for Minicabs

Breakdown cover for minicabs is crucial for taxi drivers in the UK, as it can get you back on the road quickly in the event of a breakdown, minimizing lost income and inconvenience to you and your passenger. Insurance providers like Smart Cover, RAC, and Green Flag offer breakdown cover for minicabs.

In terms of breakdown cover for minicabs, there are various types of coverage to consider. Roadside assistance is included, addressing basic roadside issues such as flat tyres, battery problems, or minor mechanical faults, with attempts at on-site repairs. Vehicle recovery is another aspect, ensuring that if the breakdown cannot be resolved at the roadside, your minicab will be towed to a garage for repair.

Onward travel coverage is designed to provide alternative transportation for both the driver and passengers while the minicab is undergoing repairs. Home start coverage is also available, extending assistance to breakdowns occurring within a specified distance of the driver’s home address. Additionally, misfuelling coverage is included, addressing the cost of draining and refuelling if the driver accidentally puts the wrong fuel in their minicab.

How Much is Private Hire Taxi Insurance?

Unfortunately, there’s no one-size-fits-all answer to how much private hire taxi insurance costs. It depends on a variety of factors like age, driving experience and record, location, claims history and vehicle type. However, to give you a rough idea, for a 30-day policy, individuals classified as good drivers with no claims history can anticipate costs ranging from £175 to £200. On the other hand, an annual policy for the same category of good drivers with a clean claims record, the costs fall within the range of £1,600 to £1,800.

With competition among insurers, finding affordable private hire taxi insurance is possible. Insurance comparison websites such as Compare the Market and Money Supermarket can help you compare quotes from various providers. Consider factors like your driving experience, type of vehicle, and desired level of cover to find the best fit. However, the cheapest option isn’t always the best. Opt for a reputable insurer with a proven track record and adequate cover for your specific needs. To lower your private car hire insurance cost, consider the following:

  • Pay-as-you-go policies: Ideal for drivers with low mileage.
  • Black box policies: Reward safe driving with lower premiums.
  • Discounts for professional affiliations: Some taxi associations offer exclusive deals.

Cheap Private Hire Taxi Insurance Providers

Several providers offer competitive rates for private hire minicab insurance in the UK. They offer flexible options like pay-per-mile or monthly policies. We strongly advise you to research and compare before committing to any provider.

  • InsureTaxi: Specialises in taxi insurance, including quick cover minicab insurance, and offers direct access to insurer rates.
  • CoverMyCab: Taxi insurance specialists focusing on Private Hire, Public Hire, Black Cab, Chauffeur, and Minicab drivers with pay-per-mile and quick cover minicab plans for flexible costs based on vehicle usage.
  • Inshur: An online insurance provider who reward safe driving with cheaper premiums.
  • Taxi Insurer: This is a private hire taxi insurance broker who has established relationships with UK insurers, offering competitive rates for taxi drivers.
  • Zego: It offers private hire taxi insurance for £144 per month or £1,349 per year. You can save up to 32% if you use their app for good drivers. Unlike standard policies, your premium will be based on your driving habits.
  • Direct Line: Offers multi-car discounts for combining personal and taxi insurance policies.
  • Acorn Insurance: They provide targeted discounts and competitive rates within specific regions, and offer cover for those who may have driving or non-driving convictions.
  • Veygo: Its pay-as-you-go model is attractive to many drivers who want to avoid upfront annual costs.
  • DNA Insurance: It analyses your individual driving data to assess risk and reduce premiums if you are a safe driver.

Find the Best Private Hire Taxi Insurance

Private hire taxi insurance or private hire minicab insurance is expensive at the best of times, and even more expensive in London. It is essential to shop around for the best quotes. Price comparison websites are a great starting point to find London based insurers, which you can compare to national providers who deal in taxi insurance. Some companies specialize specifically in taxi insurance, such as CoverMyCab, Taxi Insurer, and InsureTaxi. They may be able to provide a better value deal, more tailored towards your needs.

The single best way to get the cheapest taxi insurance is to keep a good track record, and a solid no claims bonus. This dramatically reduces the amount you will pay, because your insurance is based on your individual circumstance. As a proven safe driver, you represent much less risk to an insurer, and therefore benefit from a cheaper deal. This discount is huge, and can save you a lot of money, up to 70 percent in some cases.

The final consideration to make is that you should always be looking to get a quote from your potential provider. If you are really up for it, you can also get several quotes off companies and play them off against each other. Driving a taxi is a business, and therefore you have to maximise your profits and minimise your costs.