What Is Private Hire Insurance?
Private hire insurance is a specialist type of motor insurance designed for drivers who carry passengers for payment on a pre-booked basis. Unlike standard car insurance, it covers you for "hire and reward" work — meaning you are being paid to transport passengers.
If you work for platforms such as Uber, Bolt, Ola, or any local private hire operator, you are legally required to have private hire insurance in place before you begin carrying passengers.
Why Standard Car Insurance Is Not Enough
A standard social, domestic, and pleasure (SDP) car insurance policy explicitly excludes any use of the vehicle for hire and reward. If you were involved in an accident while carrying a fare-paying passenger on a standard policy, your insurer could refuse to pay out — leaving you personally liable for any damages, injuries, or third-party claims.
This is not a grey area. Using your vehicle for private hire work without appropriate insurance is a criminal offence under the Road Traffic Act 1988.
Levels of Cover Available
Private hire insurance is available at three levels, just like standard motor insurance:
- Third Party Only (TPO): The minimum legal requirement. Covers damage to other vehicles, property, and injuries to third parties. Does not cover your own vehicle.
- Third Party, Fire and Theft (TPFT): As above, plus cover if your vehicle is stolen or damaged by fire.
- Comprehensive: The highest level of cover. Includes everything above, plus accidental damage to your own vehicle regardless of fault.
Most experienced drivers opt for comprehensive cover, as the cost difference is often modest compared to the protection provided.
What Affects the Cost of Private Hire Insurance?
Several factors influence how much you will pay for private hire insurance:
- Driving experience: Both general driving experience and specific taxi/private hire experience
- Claims history: Any previous claims, whether fault or non-fault
- Convictions: Motoring or criminal convictions on your record
- Vehicle type: Age, value, engine size, and security features
- Licensing authority: Which council issued your private hire licence
- Location: Where you live and operate
- No claims bonus: Years of claim-free driving
How to Arrange Private Hire Insurance
There are two main routes to arranging private hire insurance:
- Direct from an insurer: Some insurers sell private hire policies directly, often through apps or online platforms.
- Through a specialist broker: A broker searches multiple insurers on your behalf to find cover suited to your circumstances. This is particularly useful if you have a complex history (convictions, claims, or limited experience).
As a specialist taxi insurance broker, we search multiple markets to present options tailored to your situation. We do not sell policies directly — we arrange cover through our panel of specialist insurers.
Documents You Will Need
When applying for private hire insurance, have the following ready:
- Your full UK driving licence (or equivalent)
- Your private hire driver licence (issued by your local council)
- Your vehicle licence plate number
- Details of any claims in the past 5 years
- Details of any motoring or criminal convictions
- Proof of no claims bonus (if applicable)
Frequently Asked Questions
Do I need private hire insurance if I only drive part-time?
Yes. If you carry fare-paying passengers at any time, you need private hire insurance in place for those periods. Some policies offer flexible arrangements for part-time drivers.
Can I use my private hire insurance for personal use too?
Most private hire policies include social, domestic, and pleasure use as standard. However, always check the specific terms of your policy.
What happens if I drive without private hire insurance?
Driving for hire and reward without appropriate insurance is a criminal offence. You could face a fine of up to £5,000, penalty points on your licence, and your vehicle could be seized. Your private hire licence may also be revoked by your licensing authority.
Can I get private hire insurance with no experience?
Yes. While premiums may be higher for new drivers, many insurers do offer cover to those without previous taxi experience. A specialist broker can help identify which markets are most likely to accept your application.
Is Uber insurance the same as private hire insurance?
Yes. Whether you drive for Uber, Bolt, Ola, or a local operator, the insurance requirement is the same — you need a private hire insurance policy that covers hire and reward use.
This article is for general information only and does not constitute advice. Cover is subject to underwriting, insurer terms, conditions, and acceptance. My Taxi Insurance is a trading style of Captios Limited, authorised and regulated by the Financial Conduct Authority (FRN 717691).
