Difference Between Private and Public Hire Taxi Insurance

Beyond simple vehicle insurance, taxi insurance is something that all taxi drivers need to consider. Since your vehicle is your only source of income, so as a taxi driver it is vital to have the right cover to ensure that both you and your vehicle are safe to be on the roads carrying passengers at all times and you don’t have to refuse any business coming your way. Getting insurance makes you sure that your flow of income is regular.

Private Hire Taxi Insurance

Types of Taxis:

When it comes to Taxi Insurance, you will hold a license against two separate categories. These are public hire and private hire vehicles. A public hire vehicle is the type of taxi that is licensed as a hackney carriage and may be flagged down at the side of the road. These vehicles are the cabs that do not need to be pre-booked. However, a private hire vehicle often takes the shape of a typical car and are more common. Private hire vehicles need to be pre-booked first and cannot be hailed down at the side of the road. Uber is a typical form of a private hire taxi.

Both Private Hire Taxi Insurance and public hire taxi insurance include a level of cover that allows carrying members of the public and their belongings for a fee.

Once you’re the vehicle is insured your licensing authority will require a copy of your insurance certificate. So, it is vital that when applying for your license to your local authority, you are required to apply for the correct type of license.

Which Is More Expensive?

Generally speaking, public hire insurance is more expensive. Why it is more expensive is because of the reason that public hire taxi drivers rely on being in the right place at the right time to be hailed down directly on the road. For example, they are usually operated in busier areas such as; busy towns or city centers.

Statistically, drivers who operate in busy areas are likely to be involved in an accident, especially where quick lane changing to pick us a passenger is required.

Whereas, public cab drivers are more likely to pick up a scoundrel passenger who could potentially damage their taxi. These drivers may pick up a passenger drunk from a night out. Public hire taxi drivers often carry a large level of cash and are more likely to be targeted by the robbers.


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