Private Hire insurance is a legal requirement for UK taxi drivers. Carrying paying passengers is not covered by standard motor cover. As customer demand for taxis rises above pre-pandemic levels, more seasoned drivers are coming back to the job, (and some are starting as beginners). However, before they get on the road, they must have Private hire insurance for their taxi.
A frequent question drivers ask is ‘How much does private hire insurance cost?’ Here’s all you need to know:
Looking for private hire insurance?
Factors that decide how much you pay for taxi insurance
Insurers consider many things when deciding the cost of PH insurance. These ‘factors’ include:
- Your age and driving record
- The type of vehicle you use for PH work
- Past claims and accidents
- Your no-claims discount (NCD)
- Where the vehicle is kept when not in use
Generally, the more expensive and powerful your vehicle, the more you pay. Too many claims and penalty points on your licence also drive up the price. Younger drivers usually pay more. No NCD means you pay full premium.
But there are actions you can take to lower the price tag. Using a modestly priced vehicle that doesn’t go like a rocket can keep costs down. Maintain a points-free licence. Buy NCD protection that keeps your discount safe if you have an accident. Young drivers can’t do much about their age, but if they drive safely, they can lower their insurance cost as they progress.
If you are fast food delivery driver, then insurance costs may differ from private hire depending on how much you plan which type of insurance type you choose based on your prefrance and planned usage.
The type of insurance cover you buy affects the price
PH Insurance comes in two basic flavours: Third Party, Fire & Theft and Fully Comprehensive.
Third Party, Fire & Theft
Third Party Fire & Theft protects other people in an accident where the taxi driver is at fault. The insurance will pay to repair or replace their vehicles and property and cover legal liabilities for injuries they incur. It does not protect the taxi driver’s vehicle or property unless their vehicle is stolen, or damaged by accidental fire.
Fully Comprehensive
This protects third parties and the taxi driver in the event of an accident where the taxi driver is at fault. It also covers fire and theft, as well as shattered windscreens, or theft of audio, communication and sat-nav equipment.
This protects third parties and the taxi driver in the event of an accident where the taxi driver is at fault. It also covers fire and theft, as well as shattered windscreens, or theft of audio, communication and sat-nav equipment.
As you may expect, because it covers more, fully comprehensive insurance costs more.
How long do you need cover for?
It’s cheaper to buy PH Insurance yearly. However, some taxi drivers only need cover for seasonal or part-time work. They could purchase 30 days policies to keep a lid on costs. Additionally, taxi drivers can choose telematic PH Insurance. This app-based policy scores your driving with no black box involved. Safe driving drives costs down.
How much is a private hire insurance UK?
Prices for private hire insurance with start at £158.28 for a 30 days policy, or £1,454.34 for an annual option*.
Drivers who switch to Zego Sense can earn discounts up to 18% off their 30 days policy, while drivers who choose our annual policy could earn discounts up to 27%.
*10% of customers paid this or less in the 6 months prior to 17/10/24
**Based on Zego customers who have been insured on Sense policies and have had a Driver Score, between May 15th 2024 and June 18th 2024)
Discover the best Private Hire insurance with Zego. Buy flexible 30 days or annual policies. Or choose Zego Sense, the telematic policy that rewards good taxi drivers with lower prices – the safer you drive, the more you save.
How can I get cheaper PCO Insurance?
Being able to demonstrate that you are a safe driver will lower the cost of your PCO insurance leading to a cheaper policy.