Taxi Insurance Guide

Read about the most common taxi insurance features and exclusions in our product guide, and find out whether you need to take out a policy.

What is taxi insurance?

Taxi insurance is a specialist insurance policy designed to cover you and your vehicle. As a taxi driver your car is essentially your business and so comprehensive insurance is crucial in order to protect your livelihood.

Do I need taxi insurance?

Taxi driving usually involves covering a far higher mileage than a standard car driver, often at unsociable hours and in built-up areas. This increases the risk of an accident and therefore it is hugely important that you are properly covered.

Standard car insurance will not cover you if you want to use your vehicle as a taxi so it is vital that you have the correct insurance for you in order to ensure that you are protected. This is determined by a number of factors:

  • Your taxi business type - whether you accept passengers from the side of the road or only take those who have pre-arranged.
  • Where your business operates - if you operate in the countryside or inner-city, you need to ensure that your policy is extended to the regions you drive in.
  • Vehicle type - many taxis have more than the standard five seats and will therefore need a policy that suits these needs.
  • Number of vehicles - if you need cover for five or more taxis a fleet policy will probably be the most effective way of insuring all your vehicles. Read more about our taxi fleet insurance.
  • Vehicle modifications - a lot of taxis have been modified to have wheelchair access. It is important that you declare any modifications to ensure you are fully covered and this equipment can be repaired or replaced in case of an accident.

What does taxi insurance cover?

Taxi insurance includes motor insurance and passenger liability insurance as standard in every policy. This ensures that you and your passengers are protected should anything happen whilst you are working. There are also a range of options you can add to your policy to create bespoke cover that suits your needs, including:

  • Breakdown cover, including separate onward travel to get your passengers to their destination
  • Courtesy-plated taxi in the case of an accident
  • Advice/assistance with the recovery of your vehicle from an accident scene
  • Repair to your vehicle in the case of an accident
  • 24-hour claims assistance
  • Home start recovery if your vehicle won't start
  • Personal use cover if you use your vehicle outside of work
  • Cover for loss or damage to keys, including locksmith charges, replacement locks and keys, car hire and onward transport

Taxi insurance exclusions explained

Taxi insurance policies do not usually cover:

  • Drivers under 25; some policies will make an exception for drivers with a clean driving history but this will increase your premiums
  • Theft of the vehicle, if the keys are left in it
  • Unauthorised or unsafe vehicle use
  • Driving outside of the region laid out in your policy

Do I need public liability cover as part of my taxi insurance?

Taxi drivers who regularly take children to school are liable legally for the child until care has been handed over to the school. This means that whilst the child is in your vehicle, or even during the short period of time during which they leave the vehicle and until you see them safely through the school gates, you are liable for their safety. If the child were to be hit by a car whilst crossing a road after getting out of your vehicle, you may be liable for that particular accident.

Public liability taxi insurance protects you and your business from any unforeseen circumstances or accidents, involving passengers in your care. It is therefore required if you deal with council or local authority contracts in order to protect yourself and your business in the event of an accident involving your passenger. (Note that standard motor-trade or taxi insurance will not protect you legally if you regularly take young children to school.)

This is a marketing article by Towergate Insurance.

Taxi insurance from Towergate

Our taxi insurance policies can be tailored to suit your needs and we cover hire and reward vehicles including chauffeurs cars, hatchbacks, minibuses, and limousines. There are a series of options for drivers of single taxis or those with fleets, to ensure you have the right cover in place within a single policy.

Passenger liability is included as standard on our taxi insurance policies, so you can be safe in the knowledge that you are protected should a passenger be injured whilst they are in your vehicle, or whilst entering or exiting your vehicle.

Call for a quote on 01903 875420 or request a quote online. Alternatively, read more about our taxi insurance and what we cover.

About the author

Chris North FCII, commercial vehicles insurance articles author Chris North FCII is a respected industry leader with over 40 years' experience, who has worked in the insurance industry in a variety of roles, accumulating a wealth of knowledge. He is currently Technical Manager for Towergate's motor division, providing expertise on all matters relating to motor fleet insurance, in particular haulage and self-drive hire fleets.