UK taxi insurance. What is it?

Written by Zego

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UK Taxi Insurance covers vehicles and professional drivers who transport fee-paying passengers. It’s different from standard motor insurance, which does not cover this type of business activity. ‘Taxi Insurance’ is a broad term that can be applied to private hire taxis, black cabs, and limousines. Carrying passengers in exchange for a fee can also be called hire and reward – although some insurers only use this name for vehicles that carry food and parcels for a fee and not passengers.

Confused? You should be. Like many businesses, the UK taxi industry has a lot of jargon that often overlaps. Knowing what these trade names really mean is important for both beginners and old hand taxi drivers. Here’s a breakdown of some of the most popular (and often confusing) labels:

  1. Minicab Insurance: Another name for private hire insurance, which is another name for taxi insurance. Mini-cabs are private hire taxis.
  2. PCO Insurance: PCO stands for ‘Public Carriage Office’, a governing body that is part of Transport for London (TFL) and that oversees all taxis in the capital. Basically, PCO Insurance means Taxi Insurance London.
  3. Ply-for-Hire: Taxis that can pick up passengers who hail them in the street – better known as Black Cabs, or Hackney Carriages. Different from private hire taxis who can only carry passengers who book a ride by phone, text, email, or mobile app.
  4. Pay-As-You-Go Insurance: Popular with professional car drivers and scooter riders who deliver food and parcels.  Ultra flexible insurance that you buy by the hour to keep costs down.
  5. ELR TFL: Since 2016, this is TFL’s English Language Requirement test – an English language exam that all London taxi drivers must pass to get their licence.
  6. Private Hire Base: A traditional minicab company, fleet operator, or mobile app platform like Uber. The Base takes bookings from passengers and employs or contracts taxi drivers to provide the rides. Private Hire drivers must be affiliated with a registered Base to obtain their operating licence.
  7. PHL: Private Hire Licence. For professional taxi drivers. Different from a standard driving licence.
  8. PHV: Private Hire Vehicle. Also known as a minicab.
  9. Telematic Insurance: App-based private hire insurance that scores the way taxi drivers drive. The safer they are, the less they pay for cover.
  10. Executive Private Hire: Posh taxis or limousines. Usually offered by small fleet operators. Luxury vehicles typically used for corporate work.

Clearly, working as a taxi driver means knowing more than how to drive or get from A to B. As well as all the jargon and things like licensing, drivers are running their own small business. Keeping a grip on costs is key. Drivers can’t do much about high fuel prices, but they can keep the cost of other items down. Getting a competitive insurance quote is essential. Hundreds of pounds per year could be saved.

How much does UK Taxi Insurance cost in the UK?

On average, Zego prices for private hire drivers with a good driving record start at £110* for a 30 days policy, or £930* for the annual option. Drivers who switch to Zego Sense can earn discounts up to 32% off their 30 days policy, while drivers who choose our annual policy could save £390 over a 12 months period than those who buy rolling 30 days cover. *10% of Zego customers paid these amounts or less for their insurance in the 6 months prior to 21st June 2022.

Steps to purchasing Zego UK Taxi Insurance

Buying taxi insurance with Zego is easy - do it in six simple steps:

  1. Have your car and private hire licence details handy.
  2. Get a quote in under a minute.
  3. Accept the quote.
  4. Have a quick chat on the phone with a Zego insurance adviser.
  5. Receive policy documents online.
  6. That’s it. You’re ready to roll.

Get competitively priced Private Hire insurance with Zego. Buy flexible 30 days or annual policies. Or choose Zego Sense, the policy that rewards good drivers with lower prices – the safer you drive, the more you save.

Get a quick quote now — it only takes a minute.