Your Guide to Private Hire Insurance

Running a fleet of private hire vehicles comes with its own set of challenges and responsibilities, which is why you need the right insurance. This guide is here to walk you through private hire fleet insurance, giving you all the essential information you need to keep your vehicles, drivers and business protected.

What is private hire?

The demand for private hire vehicles has grown due to our busy lifestyles and the unpredictable nature of flagging down a taxi. They operate a little differently from regular taxis, since they only pick up passengers who book their rides in advance, usually through a company or an app like Uber. This pre-booking requirement changes the risk profile of the service, influencing the insurance requirements and regulations. Understanding these requirements will help ensure you’ve got the right coverage for your business.

Why do you need private hire insurance?

Besides being a legal requirement, private hire fleet insurance provides protection for the owners of the vehicles. Here are the key reasons why it’s so important:

Increased exposure to risk: Driving a private hire vehicle automatically comes with more risk. These vehicles transport fare-paying passengers – leading to increased liability in accidents. The passengers can claim directly from your insurance if they are injured, which can be costly if the proper cover isn't in place.

Higher mileage, higher risk: Private hire vehicles cover significantly more miles per year compared to personal vehicles. The more time you spend on the road, the higher the likelihood of an accident, regardless of your driving skills. This increased road exposure raises the risk for insurers.

Income protection: For taxi drivers, your vehicle is your source of income. Standard vehicle insurance policies do not typically cover loss of earnings; however, private hire fleet insurance does. This means that if you're unable to work due to your vehicle being off the road, your insurance can help mitigate the financial impact.

To protect yourself from these risks and get back on the road quickly, speak to us today. We’re recognised as expert fleet insurance brokers and can simplify the process for you. We are well-equipped to find the best deals and appropriate cover tailored to your specific business needs, allowing you to focus more on driving and less on insurance complexities.

Do taxis need special insurance?

Due to the unique nature of work, involving high passenger turnover, extensive driving hours and increased exposure to road accidents and liabilities, taxis need special insurance to cover this. Regular car insurance policies do not cover these risks, and the factors listed above make taxi insurance more specialised and detailed compared to standard car insurance.

It's important to note that taxi fleet insurance only covers the specific vehicles listed in the policy. Each vehicle in your fleet needs to be explicitly covered; you cannot assume one policy blanket covers any vehicle used for business purposes.

What are the different types of private hire fleet insurance?

There are three main types of coverage available:

Third party only: This is the most basic level of coverage. If you are involved in an accident, the policy will cover any damages or compensation owed to the other party involved. However, any damage to your own vehicle or any compensation claims made by your driver will not be covered under this policy.

Third party, fire and theft: This policy offers a higher level of protection. It covers any damage to your vehicle that results from fire, theft or attempted theft, as well as the coverage provided by third party only.

Comprehensive insurance: This is the highest level of coverage available. It includes everything covered by third party fire and theft, and it also covers any damage to your own vehicle, providing total protection.

Do I need private hire insurance or minicab insurance?

Don’t be confused by the terminology; there is no difference. A minicab is simply the Public Carriage Office’s (PCO) term for a private hire vehicle in the London area and much of southern England. So whether you’re a private hire driver in Edinburgh or a minicab driver in London, you still need private hire fleet insurance cover for your vehicles to be used for hire and reward purposes.

Can minicabs and hackney carriages be insured under a taxi fleet policy?

Yes, both minicabs (private hire vehicles) and hackney carriages (public hire vehicles) can be insured under a taxi fleet policy. This type of insurance policy is designed to cover multiple vehicles under one umbrella, which can be more cost-effective and easier to manage than insuring each vehicle individually.

Taxi insurance for under 21’s

Taxi driving has become a popular choice among young people, though finding insurance can be challenging, particularly for those under 21. Due to limited driving experience and perceived higher risk, insurers often hesitate to offer policies to this age group. As a result, young taxi drivers may face higher insurance premiums and could be subject to restrictions such as mileage caps and limited working hours.

Taxi insurance for under 25’s

Despite potentially having up to 8 years of driving experience, these drivers are still categorised as young and typically face higher insurance costs. Many insurers prefer not to provide coverage to drivers under 25, making it difficult to find suitable insurance options.

What your insurer will need to know

It’s important to gather detailed information to ensure we can discuss your needs effectively. Here’s what you’ll need to prepare:

Type of coverage: Think about what kind of coverage you need. Are you looking at basic third party only (TPO), third party fire and theft (TPF&T) or the more comprehensive cover?

Driver policy: Consider if you need insurance for specific drivers assigned to each vehicle, or if an Any Driver policy would be more suitable.

Regulatory and contractual requirements: Check for any specific local laws or contractual obligations you need to meet. This might include extra public liability insurance.

Vehicle security features: List any security enhancements your vehicles have, as these can help reduce premium costs.

Driver qualifications: Note any special qualifications your drivers may have, such as advanced driving certifications, DSA recognised qualifications, NVQs, etc.

Driver history: Be aware of any driving convictions your drivers might have on their licences.

Claims history: Lastly, know your no claims discount (NCD) level, or have a summary of your claims from the past three years ready to go.

Talk to Bluedrop today

Opting for a specialised private hire fleet insurance policy can offer substantial benefits for business owners managing multiple vehicles and drivers. With one comprehensive fleet policy, you can cut down on paperwork, manage renewals efficiently and even get the added flexibility of an "Any Driver" option. Whether your fleet is as small as two vehicles or as large as five or more, a fleet policy streamlines the insurance process and provides the flexibility needed to run your business smoothly and securely.