Do I Need Private Hire Insurance?

One of the main expenses you have when working as a private hire taxi driver is the cost of insurance.

If you work as a private hire driver then you you definitely need to get private hire insurance. This is required by law and you cannot work legally without it.

Private hire insurance will cover you for the main risks you face on the road. Below are the different types of cover you can get as well as a couple of ways to save money.

Types of cover

  • Third party only - A third party only policy is the cheapest cover available for a private hire taxi and will provide cover only for third parties if you’re involved in a collision that you’re liable for. This is the minimum level of cover required by law.
  • Third party, fire and theft - If you want to add more protection to a third party policy then you can get third party, fire and theft cover. This is the same as third party where collisions are concerned but you’re also covered for damage by fire and if you vehicle is stolen.
  • Fully comprehensive - A fully comprehensive policy will cover your vehicle for all types of collisions, including those that you’re at fault for.
  • Liability claims – Another type of cover you’ll need when working as a private hire drive is public liability insurance. This will ensure you’re covered in the event that a passenger or member of public were to file a liability claim against you. Private hire taxi firm operators will also need to get employer’s liability insurance.
  • Breakdown assistance - Breakdown assistance is a very useful additional cover option you can have included in a private policy too. It can often work out cheaper to get this added to your policy rather than getting it from a third party provider.

Saving money on private hire cover

Private hire insurance is known to be quite expensive but there are a couple of ways to help you save money.

Firstly you should be sure to get as many quotes as you can. This is now very easy to do and is one of the best ways to ensure that you don’t pay more than you should for private hire insurance.

Another great way to save money on your policy is by paying annually rather than monthly. Most insurance providers will offer you a good discount for doing this.