Most people getting their private hire badge focus on the licence and the car. Then the insurance quote arrives, and the size of it can come as a surprise.

Here's what a lot of new drivers wish they'd understood about insurance, and how to keep it manageable.

Taxi or private hire? They're not the same thing

This confuses a lot of people early on. A hackney carriage, the classic taxi, can be flagged down in the street or picked up at a rank. A private hire vehicle, the kind you drive for Uber, Bolt or FreeNow, has to be booked in advance.

They need different licences and different cover. If you plan to work through an app, private hire is almost certainly your route.

What you actually need

The licensing path has a few steps, and they're all worth knowing up front:

• A private hire driver licence, called a PCO licence in London, issued by TfL or your local council
• You must be at least 21 and have held a full UK licence for around three years
• An enhanced DBS check and a medical to the right standard
• In London, an English language requirement and the SERU assessment of regulatory knowledge, plus a topographical test in some areas
• Separate licence for the vehicle itself, the PHV licence
• Link to a licensed operator before you can start working

Insurance is the final legal step before you can start earning, so it pays to know how it works.

The cover class many people get wrong

Here's the one that costs people a lot of money. Normal car insurance, the social, domestic and pleasure type, doesn't cover you to carry paying passengers.

For private hire work you need hire and reward cover. Drive a booking on the wrong policy and you're effectively uninsured. A refused claim and a licensing problem are not the way to begin a new career.

Plan for the insurance cost

Insurance is a real cost, and it's easy to underestimate when you're budgeting for the licence and the car. It helps to factor it in early, so it fits into your plans rather than surprising you later.

Here's the reassuring part. New drivers start without any no claims discount, so the first year is usually the most expensive. That's normal, and it doesn't last. As you build a clean record, your price should come down. So don't let the first quote put you off.

Choosing between 30-day and annual cover

Both options have their place, and which one suits you comes down to how you plan to work.

A 30-day policy is flexible. You can stop and start it around your driving, which helps if you're not yet sure how much you'll work, or if you drive seasonally. The upfront cost is smaller too.

An annual policy covers you for the full year in one purchase. It's often better value over a year, you can spread the cost with monthly instalments, and staying continuously insured helps you build your no claims history.

There's no single right answer. Look at how you expect to work, compare the two, and pick the one that fits you.

Telematics cover is worth a look when you're new too. Because it weighs heavily on how you actually drive, it doesn't depend as much on the no claims history you haven't had a chance to build yet. With Zego, your certificate uploads to Uber, Bolt or FreeNow automatically once you're covered.

The takeaway

Becoming a private hire driver is a good move, with real freedom and real earning potential. Get the right cover class, plan for the cost, and you set yourself up to protect both your money and your licence.

Ready to see your number? You can get a private hire quote below or find out more at zego.com/private-hire.