How much does taxi insurance cost? | UK guide

No two taxi drivers pay the same, and all of them pay more than they would for a standard car policy. Taxi insurance is priced on how much you drive, where, what you drive, your record and how long you need cover for, so the honest answer to 'how much' is a quote. What this guide can do is show you what moves the price and which of those levers are yours to pull.

Zego prices private hire insurance two ways. A standard policy gives you a price that is set up front. An app-based telematics policy saves you up to 17% upfront (T&Cs apply) and builds a renewal price that reflects how you actually drive. Both come as 30-day or annual cover, third party only or fully comprehensive, and both cover private hire work, food and parcel delivery and your own driving on one policy.

Updated 19 October 2026: rewrote the pricing sections around Zego's two ways of being priced, added what TfL asks of London PCO drivers and how cover works for drivers licensed outside London, and removed price figures that were out of date.

What is taxi insurance?

Taxi insurance for private hire drivers is hire and reward cover: insurance to carry pre-booked passengers for payment. You will also see it sold as PCO insurance, after the old Public Carriage Office that issued London licences, or as minicab insurance. Whatever the name, a standard social, domestic and pleasure (SD&P) policy doesn't cover the work.

Depending on the level you pick, it covers other people and their property, and on fully comprehensive cover your own vehicle as well. Zego's private hire policy also covers food and parcel delivery and personal driving, so one policy does the job. Breakdown cover, a replacement vehicle licensed for private hire work while yours is repaired, and NCD protection are optional extras.

Why does taxi insurance cost more than regular insurance?

Because you spend far longer on the road than a commuter, in busier places at busier times, and you carry paying passengers. More miles in heavier traffic means more chances of a collision, and a claim that involves a passenger can be a bigger claim. Insurers price that exposure in, which is why taxi cover costs more than a standard car policy.

What affects the cost of taxi insurance?

These are the factors that do most of the work in a private hire quote.

Your driving history

A recent accident, even one that wasn't your fault, sits in your claims history and your insurer will weigh it. Taxi no claims bonus is usually built separately from your private car one, so the years you earn on a taxi policy are worth protecting. If you can add no claims discount (NCD) protection to your policy, it keeps that discount safe through one at-fault claim. Zego's guide to private hire no claims discount protection explains how it works.

Points on your licence

The more points you carry, the higher the price tends to be, and some endorsements stay on your record for years. Declare every one. An undeclared endorsement can leave your insurer unable to pay a claim, and for a licensed driver that is a licence problem as well as an insurance one.

Your vehicle

A vehicle that costs more to repair or replace costs more to insure, and one that thieves target costs more again. Engine size and modifications push the same way. On an older, higher-mileage car, third party only cover may give you what you actually need for less, so price both levels before you decide.

Black cab or private hire

The two licences need different cover. A hackney carriage can be hailed in the street or picked up from a rank, so public hire insurance is priced for that. Private hire cover is for pre-booked work only. The risk is different and so is the price.

If you drive a black cab, Zego covers that too. Our public hire taxi insurance is built for hackney carriage drivers, and our taxi insurance page sets out both routes.

Where you live and where you park

Your postcode and where the vehicle sleeps both feed the quote. A driveway, garage or secure off-street space overnight is priced as lower risk than the roadside, and an alarm, immobiliser or tracker helps too. If you move, check the new postcode before you assume the price stays the same.

Your age and experience

Younger and newer drivers tend to pay more because they carry the least experience; the exact curve depends on the insurer. Your licensing authority sets the floor for private hire: TfL, for example, asks for a full licence held for at least three years. Zego's acceptance rules are checked at quote.

Criminal convictions

A conviction that has nothing to do with driving can still move the price, because it changes the risk profile the insurer is pricing. Some insurers want to know about spent convictions as well, so check exactly what you need to declare.

How long you need cover for, and how you pay

Zego sells private hire cover as 30-day or annual policies. A 30-day policy suits a driver waiting on a plate or moving between operators, and it is a starting point rather than a way to run a whole year. Annual cover is better value than paying for short policies back to back, and you can pay for it in instalments.

On a telematics policy, your driver score builds while you are covered, on 30-day and annual cover alike, and it can count towards your annual price.

How to lower the cost of taxi insurance

Most of the price is risk. Bring the risk down, or show the insurer it is lower than the averages suggest, and the price follows. These are the levers that move it most.

• Keep a clean driving record and your licence free from points.
• Build your taxi no claims bonus and protect it. NCD protection keeps the discount safe through one at-fault claim.
• Check whether your vehicle is driving up the price, and whether third party only cover would do the job on an older car.
• Park somewhere secure overnight and tell your insurer where.
• Give an accurate annual mileage. Taxi mileage is high, but rounding it up costs you money, and you can tell your insurer if your pattern changes mid-policy.
• Choose app-based telematics. Zego's telematics private hire policy saves you up to 17% upfront (T&Cs apply), and good driving can mean a fairer renewal price.

Standard or telematics, two ways to be priced

Both Zego private hire products use the Zego app for documents, certificate upload and support. The difference is how the price is built.

Neither is the better product. Standard suits a driver who wants the price fixed and the app left for documents. Telematics gives you the upfront discount for choosing it, and a driver who drives well can see that recognised at renewal. The price never moves during a policy on either: the score affects the renewal, not the term you've paid for.

What insurance do I need as a PCO driver in London?

Hire and reward private hire insurance, the same cover as anywhere else, with TfL's licensing rules on top. TfL wants to see your hire and reward documents at the vehicle inspection, as printed originals, not electronic copies. Your driver licence needs you to be 21 or over with a full licence held for at least three years, an enhanced DBS check, Group 2 medical standards and three assessments. A vehicle plated for the first time since 1 January 2023 has to be zero emission capable, and private hire vehicles are not exempt from the ULEZ. Zego's London taxi insurance page has the full list and the ULEZ detail.

Does the price change outside London?

The cover doesn't, and the licence you hold decides the paperwork rather than the policy. Zego's private hire insurance is accepted by Uber, Bolt and all UK councils, so a driver badged by Leeds, Bradford or any other authority gets the same two ways of being priced as a London PCO driver. Where you drive does feed the price, because congestion, claims rates and theft vary by city, which is why a quote asks for your postcode. Zego has local pages for Manchester, Birmingham and Liverpool covering the clean air and licensing rules in each.

Over 100,000 taxi drivers have insured with Zego. Get a private hire quote in a few minutes, with your taxi badge and driving licence to hand.