When it comes to a career as a taxi driver, choosing the right type of insurance is both a legal requirement as well as a necessity for protecting yourself, your passengers, and your livelihood. If you’re operating a taxi, the type of insurance you’ll need is different to other motorists and the taxi insurance you need will depend on whether you are a private hire or public hire taxi driver.
In this guide, we’ll explore the key differences between private hire taxis and public hire taxis, explain what type of insurance for your taxi you need. We will also discuss how Collingwood can support you with flexible, affordable cover options tailored to your needs.
Not all taxis fall under the same category, and the type of insurance you need depends on whether you’re working as a private hire or public hire driver.
Private hire taxis are vehicles that must be pre-booked in advance, usually through an app, website, or phone call. They normally cannot be hailed directly from the street or picked up at a taxi rank. Popular services such as Uber, Bolt, or local minicab firms all operate under private hire licences.
Because they must be pre-booked, private hire taxis provide a more structured service and often operate under strict licensing conditions set by local councils. For this reason, drivers will require private hire taxi insurance specifically designed to cover them for this type of work.
Public hire taxis, sometimes called hackney carriages or black cabs, can be hailed on the street or picked up from designated taxi ranks. These vehicles are licensed to pick up passengers without pre-bookings and are usually the only type of taxis permitted to do so.
Public hire drivers also need specialist insurance to cover their work, but their cover will differ slightly as they face different risks compared to private hire drivers, particularly when it comes to passenger pick-ups in busy public areas such as city centres, train stations and airports.
| Features | Private Hire Taxi | Public Hire Taxi |
| How passengers book | Must be pre-booked via app, phone, or website | Can be hailed in the street or from taxi ranks |
| Examples | Uber, Bolt, local minicabs | Hackney carriages, black cabs |
| Licensing | Licensed for pre-booked jobs only | Licensed for immediate pick-ups |
If you’re operating as a private hire driver, you will need a specific type of policy typically known as private hire taxi insurance. This is different to a standard car insurance policy, as it covers you to carry paying passengers who have booked your vehicle in advance.
At a minimum, private hire insurance should include Hire and Reward cover, which is the legal requirement for carrying passengers in return for payment. It’s also worth choosing a policy that combines this with Social, Domestic and Pleasure (SDP) use as this allows you to use your vehicle for personal driving when you’re not working.
Without the correct cover in place, you risk invalidating your insurance, facing legal penalties, and not being financially protected in the event of an accident.
Just like private hire drivers, public hire drivers must have the right insurance in place. You’ll need a policy specifically designed for public hire taxis, which differs from standard motor insurance as it covers you to pick up passengers from the street or taxi ranks without a prior booking.
Public hire taxi insurance must include Hire and Reward cover, as this is a legal requirement for anyone carrying passengers in exchange for payment. Many drivers also opt for policies that combine this with Social, Domestic and Pleasure (SDP) use, giving the flexibility to use the same vehicle for everyday personal driving outside of work hours.
Driving without suitable public hire cover can potentially lead to serious consequences such from invalidating your insurance to receiving fines or facing prosecution if you’re involved in an accident while uninsured.
At Collingwood, we understand that every driver’s situation is different, which is why we offer flexible taxi insurance options for both private hire and public hire drivers. Whether you’re new to the industry or have years of experience, our cover is designed to give you peace of mind on the road.
With us, you can choose between annual taxi insurance for long-term security or short-term taxi insurance for added flexibility. Both options come with no interest on monthly payments and no credit checks, making our policies accessible and affordable.
Our policies cover you for both work and personal use, meaning you get Hire and Reward cover for your passengers and Social, Domestic and Pleasure cover for your everyday driving – all in one simple package.
Whether you’re looking for a long-term commitment or something more temporary, Collingwood’s taxi insurance options can be tailored to suit the way you work.
Choosing the right insurance as a taxi driver is essential to staying compliant with the law and ensuring you’re fully protected while carrying passengers. The key difference lies in the type of service you provide. Private hire drivers need private hire taxi insurance designed specifically for pre-booked journeys, while public hire drivers require public hire taxi insurance that covers them for picking up passengers directly from the street or taxi ranks.
At Collingwood, we make the process simple by offering flexible cover options for private hire drivers, whether you need annual protection or short-term flexibility. With affordable pricing, no hidden fees, and cover that includes both work and personal driving, we’re here to help keep you moving with confidence.
If you’re ready to get started, explore our taxi insurance options today and find the policy that’s right for you.
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