Cab Cover – Demystifying Your Options


Taxi driving is a noble and rewarding profession in the UK and is often well-recompensed. Combining driving proficiency with local knowledge and navigational skills, taxi driving is skilled work – and sought-after, despite the relative decrease in the number of taxi drivers in the UK. Indeed, the decrease in drivers represents an opportunity for those considering entering the profession, to join the ranks as part of a new driving generation.

There are a few small obstacles to driving a taxi, whether full-time as part of a private firm or part-time with a hailing app. Obtaining a cab license is one of them, but perhaps more daunting to new drivers is the range of taxi insurance options from which to choose. This piece aims to demystify those options, helping you choose the right insurance model for your vehicle and service.

What Service Do You Offer?

Firstly, different insurance options will serve different purposes. An easy way to narrow down your options is to define the service you offer, and the framework through which you offer it. For example, the risks inherent to driving a public hire taxi that can be hailed, versus a private-hire vehicle that needs to be pre-booked, would necessitate more extensive coverage. Likewise, if your vehicle seats more than five, your insurance will need to reflect the increased passenger capacity.

There are three chief kinds of taxi insurance, under which specific policies relating to your type of car and service needs would fall:

Sole Driver. Under this policy, the owner of the taxi is insured to drive it. If you have ownership of yourtaxi vehicle or run your own public hire taxi service, a ‘Sole Driver policy is the one you need.
Named Driver. A ‘Named Driver policy enables the owner of the vehicle to name drivers in the policy, covering them to use the vehicle. This is commonly used by drivers who share their leased vehicle with another driver, or by small firms with a limited fleet.
Any Driver. Under an ‘Any Driver policy, the vehicle can be driven by anyone under a taxi company’s employ.

Public Hire vs Private Hire

As mentioned above, insurance policies differ between public hire and private hire taxi services. Black cabs fall under the public hire bracket, while cabs driven for ride-hailing services such as Uber and Lyft would need private hire cover. Both come in three levels – third-party, third-party fire and theft, and comprehensive.

There is an additional layer of insurance coverage that comes highly recommended for taxi drivers, and that some ride-hailing services require of their drivers: public liability insurance. This insurance protects you against claims made by passengers or the public, right up to covering legal fees in the event of a court case.

Optional Extras

Insurance options don’t stop with the above policy outlines. There are optional extras you can include in your policy to ensure peace of mind ahead of the worst-case scenario. Excess protection can ensure your payments don’t increase following an incident, while breakdown coverage can guarantee a swift roadside repair or even a courtesy taxi.