Taxi Insurance Buyer's Guide

What is the definition of a taxi?

A taxi is a vehicle that is licensed to transport one or more passengers from one location to another in exchange for payment. Such a vehicle is usually fitted with a meter that is used to calculate how much the taxi driver is paid for the journey. A variety of makes and models of motorized vehicles can be used as a taxi such as a 4 door saloon car designed to carry up to 4 passengers or a 7 seater SUV. People can order a taxi to pick them up from home, get in a taxi that is waiting at a taxi rank that are often found at places like railway stations or be hailed in the street.

In London, many of the taxis are known as black cabs. A black cab can be hailed down by a passenger who is say stood in a street, pick up passengers from a rank or collect passengers from specific locations.

There are also private hire vehicles that people can phone and order to be picked up in from a specific location at a particular time and transported to a destination of their choice such as to the airport. Such a vehicle is not allowed to be hailed or operate from a taxi rank.

Who provides taxi insurance?

Cover is provided by a huge range of insurance companies here in the UK ranging from multi-national household names to small specialist companies. You may wish to consider using an independent insurance broker who has an extensive panel of insurers or a price comparison website if you wish to arrange taxi insurance.

What does taxi insurance cover?

As with car insurance, there are three levels of cover:

Third party insurance - it is a legal requirement that, as a minimum, a taxi driver insures his or her taxi for third party cover. This would pay out in the event of the vehicle being involved in an accident but would only cover third party liabilities such as damage to other vehicles or property and the injury or death of third parties. It would not cover damage or theft of your taxi or for any injury to you or should you die as a result of being involved in a road traffic accident.

Third party fire and theft - in addition to the cover provided by third party insurance, cover would be provided should your own taxi be stolen or damaged by fire.

Fully comprehensive - in addition to the cover provided by the above two levels of cover, your taxi would be insured for any damage that it sustains due to the likes of a road traffic accident whether it is someone else's fault or indeed your own.

Are there any optional extras with taxi insurance?

This may vary between insurance companies but could include things like:

1. Public liability cover, if not included as standard, may be available as an optional extra. This would pay out in the event of the injury or death of third parties including any fare paying passengers following a road traffic accident or should their belongings be stolen or damaged.
2. Legal cover.
3. Loss of license cover.
4. Breakdown cover.
5. Windscreen cover.

Are there any exclusions?

Below are some potential exclusions relating to taxi insurance but you should check with the specific insurance company:

1. A taxi driver may need to be at least 25 years of age.
2. Unauthorised drivers are not permitted to drive the taxi.
3. If your taxi is stolen when the keys are in the vehicle.
4. If the taxi driver is under the influence of alcohol.

How much does taxi insurance cost?

Taxi insurance is possibly going to be more expensive that the cost of insuring your private, family car as, for instance, you are probably going to travel more miles in a taxi and therefore are more likely to be involved in a road traffic accident.

There are so many factors that will affect how much you will be charged for taxi insurance. For instance, the make and model of vehicle, your age and driving experience, how many miles you do each year, where you live and operate from as a taxi driver and the level of cover.

The cost will vary between insurance companies so it is a good idea to shop around for cover.

Can you utilise the taxi for your own personal use?

Your insurer may include cover for personal use as standard in which case the answer is yes. If it is not included as standard it may be available as an optional extra.