November 30, 2018
Airport taxis

What is taxi insurance

Knowing just what is taxi insurance will help you be legally protected when you are transporting passengers in your commercial vehicle. Since you cannot be covered by a standard vehicle insurance policy, a Hire for Reward policy is required. If you operate a fleet then we can provide you with quotes for taxi fleet insurance.

What is Hire and Reward Insurance?

Hire and Reward insurance is the coverage every taxi driver, rideshare driver like Uber, chauffer and courier needs to be legally covered on the road in accordance with UK law. This protects the person you are transporting and their contents.

What are the different categories of Hire for Reward policies?

  • 1
    Private hire and reward polices are designed for chauffeurs, Uber drivers and couriers who have a designed person or package assigned to them for transport.
  • 2
    Public hire for reward policies are for taxi drivers that can be hailed by anyone like a person on the sidewalk calling for a taxi.

Are there different types of coverage?

  • 1
    Policy Only coverage is the least expensive, but as names of drivers are added to the policy, the premiums will increase.
  • 2
    Named Driver policy will only cover 1 driver of 1 taxi.
  • 3
    Any Driver policy is used by taxi fleet operators and is the most expensive.

Once the above selections are made then the exact coverage needs to be decided upon.


  • Third party coverage will cover the cost of repairs and medical bills for the other vehicle when you are at fault in an accident.Third party Fire and Theft coverage. 
  • Third party Fire and Theft coverage is the same as above, but also protects your vehicle if it is consumed by a fire or is stolen.
  • Comprehensive policy is the same as above, but you and your vehicle are financial covered for medical bills and repairs.

Are there special add-ons that should be considered?


Public Liability insurance is highly recommended. This will protect you against any lawsuit that might occur if one of your passengers files a lawsuit for damages while they were in your vehicle.

Taxi Breakdown coverage will cover the costs of taking your passengers to their final destination if your taxi breaks down or in involved in an accident.

​Replacement Plated Cabs coverage which will provide a vehicle to be used as a taxi within 24 hours of an accident or your vehicle is not road worthy.


In some taxi policies legal assistance is provided while in others it is not. Read the fine print and if your policy does not cover legal assistance, an add-on for it should be included to cover the legal cost. This is used if you need to take legal action for the recovery of fees or the costs of damage to your vehicle

Why is taxi insurance so expensive?

The biggest reason taxi insurance is more expensive than a standard vehicle policy is because of the increased risk associated with this type of vehicle. This includes the vehicle being on the road more hours and covering more miles than a standard vehicle.

Many taxis operate in highly congested urban areas which also contribute to high risk which means higher premiums.

If you are not sure what you need, one of our independent insurance brokers are ready and willing to assist you. They can help find the type of policy that fits your needs at a price you can afford.

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