Taxi Insurance

Why choose Howden for Taxi Insurance?

As an insurance broker in Scotland, when it comes to getting taxi insurance cover, we pride ourselves on doing the heavy lifting, so you don’t have to. Thanks to the great relationships we have with our selected panel of standard and trusted insurers, we make the process of comparing multiple policies, on your behalf, simple and hassle free. What’s not to like?

We also know that each policy needs to be as individual as its owner, and that’s why we provide a personalised service, focused on getting to know you and finding out exactly what you want from your taxi insurance.

Ultimately, just know that we’re here to help, whether you need to purchase a new taxi policy, renew an existing one, or even make a claim.

Benefits of working with us:

• You can trust us – we’re rated Excellent on Trustpilot.
• We’re driven to save you time, money, and hassle.
• Benefit from a tailored service that comparison sites can’t provide.
• Speak with your local branch, within your community.
• We’re right by your side in the event of a claim.

What is Taxi Insurance?

Taxi insurance is very similar to car insurance, except it’s designed to cover the needs of taxi drivers. This type of policy specifically covers any vehicles used for taxi driving services and is generally more expensive than car insurance due to the higher risks associated with transporting people commercially and the potential liability involved in transporting passengers.

If you’re considering becoming a taxi driver, it’s important to consult with insurance providers or a broker, such as Howden, who specialise in taxi insurance to ensure you have the appropriate coverage based on your specific needs.

What’s the difference between private hire and public hire taxi insurance?

The difference between these two types of insurance for taxis and taxi drivers is based on the taxis themselves.

A public hire taxi doesn’t need to be booked in advance and can be hailed by anyone on the street whenever they see the taxi driving near them. Whereas private hire taxis must be pre-booked for pre-arranged journeys and can’t be hailed by passengers from the street or in a taxi rank.

What is taxi fleet insurance?

Then there’s taxi fleet insurance, a type of business insurance which is designed for businesses or individuals who own multiple taxi vehicles, or a fleet of vehicles used for taxi or ride-sharing services. Instead of insuring each vehicle individually, taxi fleet insurance policyholders are able to hold a consolidated insurance policy that covers all the vehicles in the fleet under a single policy. Not only is this more cost-effective than insuring each vehicle separately, it also allows fleet owners to be more organised, including taxis and their drivers under one manageable policy.

Whether it’s just you and your taxi or you have a taxi business, thanks to the relationships we have with a range of taxi insurance specialists, we can help you compare different taxi fleet policy options and find a cover solution that suits you and your needs.

What insurance do taxi drivers need?

If you’re a taxi driver, the type of insurance you need depends on several factors, like whether you pick up passengers on the street or only take those who have pre-booked, how many seats your car has and whether you want to add on extras, like public liability insurance. You can choose between private or public hire insurance:

Public hire taxi insurance

If you’re licenced to pick up passengers who haven’t pre-booked, you’ll need public hire insurance, which is often also referred to as black cab insurance.

Public hire insurance also usually applies to London black cabs or hackney carriages and has generally higher premiums compared to private hire taxi insurance.

Private hire taxi insurance

Also known as private hire and reward insurance or pco insurance, private hire insurance won’t cover you to carry passengers who haven’t pre-booked.

A private hire insurance policy will also usually apply to minicabs and large multipurpose vehicle taxis, such as people carriers.

For part-time private hire drivers, you can also get short-term taxi insurance. It usually covers you for periods from one week and can be cheaper than buying an annual policy.

What does Howden’s Taxi Insurance cover?

Once you’ve decided whether you need public or private hire insurance, similarly to all forms of motor insurance, you’ve then got three levels of taxi cover that you can choose from:

Third-party insurance

This is the minimum level of cover you need to drive on UK roads. It covers you for damage you may cause to other people, vehicles or property.

Third-party, fire and theft insurance

The next level up will also protect your vehicle against theft and damage caused by fire.

Fully comprehensive cover

The highest level of insurance will cover you for damage caused to your vehicle or injury to yourself, even if you're the one at fault.

You’ll also usually be able to choose between the following:

• Policy only cover – This is the cheapest form of cover, but each time you add a new driver, the price will go up
• Named driver cover – This will cover the taxi driver only
• Any driver cover – This is the most expensive option, as it covers anyone who drives your taxi

Want to find out more about what taxi insurance can offer? Read our article here on What does taxi insurance cover?

How much is insurance for a taxi driver?

So now you’re thinking, how much will my taxi insurance cost me? Unfortunately, this is hard to say before knowing more about you, because the price of a policy will differ depending on your individual circumstances. Your driving history, where you live, where you keep your taxi at night and what type of vehicle you drive are all considered when insurance providers generate taxi insurance quotes.

However, we do know some ways in which you might be able to get cheaper taxi insurance. These include:

Choosing your taxi wisely - keep in mind that smaller taxis tend to fall into lower insurance groups compared to larger vehicles.

Don't make unnecessary modifications - avoid any changes to your vehicle that are not essential.

Increase security - insurers will see you as less of a risk if you install security devices, like CCTV systems or dashboard cameras.

Park securely - keep your taxi on a driveway or, even better, in a locked garage overnight.

Avoid extras you don’t need – don’t waste money on optional add-ons that you don’t need.

Shop around for a quote - going through a broker like Howden could help you get a better deal on your taxi insurance.

Mention any no-claims discount - your no-claims discount could save you a great deal.

Pay upfront - paying monthly usually costs because you have to pay interest on monthly payments.

How to get a taxi policy quote from an insurance broker

Once you’re ready to get your hands on a taxi insurance quote, all you’ll be asked to do is to provide us with a few details:

The type of business you’re operating

Policies differ according to whether you pick up passengers from the side of the road or take pre-bookings only.

The area you operate in

Your policy may become invalid if you drive outside of your operating area, so you must make sure you’re covered for all the regions you drive in.

What type of vehicle you have

If your car has more than five seats, your policy needs to take this into account. You’ll also need to confirm whether your taxi has been modified in any way to make sure you’re covered for repairs or replacements.

How many vehicles you’ve got

If you have a fleet of taxis, it might be better to take out taxi fleet insurance instead of individual policies for each one.

You’ll also be asked to confirm that you’ve held a valid full UK driving licence for at least 12 months, you have a valid taxi licence and that you’re over a certain age, which is usually 21. Only then will we be able to compare various policy options and compile together taxi insurance quotes that suit you and your taxi-driving.

Find out more here about Taxi Insurance brokers!