Do You Need Taxi Insurance to Work as a Cab Driver?

Claire Small's picture
Authored by Claire Small
Posted Tuesday, May 21, 2019 - 9:46am

There are lots of reasons to envy taxi drivers. Driving a taxi is an incredibly liberating experience, and it is a job that offers flexible hours and potentially excellent pay. Even with the rise of Uber, there are still lots of people looking to get into the role of a traditional taxi driver, and it isn’t hard to see why.

One of the biggest attractions of becoming a taxi driver is that there are very few barriers to entry. While those who have a criminal record for serious offences may not be able to obtain the necessary taxi operators’ licence, just about anyone with a full British driving licence can apply for one.

Just as you need to ensure that your personal vehicle is insured before you take it out on the roads, you need to make sure that your taxi is appropriately insured. Taxi insurance is a legal requirement, and very few insurance policies will cover you if you are using your personal vehicle in a professional capacity. Here’s everything that a potential new taxi driver could want to know about taxi insurance.

What is it?

You should, hopefully, be familiar with car insurance. Every driver needs to have car insurance, as an uninsured vehicle can be seized by police and can ultimately be a very costly mistake. If your vehicle is involved in an accident, then your car insurance will shield you from some of the financial impacts of having to have your vehicle repaired.

Taxi insurance is just like your regular car insurance except that it specifically applies to taxis. Most car insurance policies won’t apply when your vehicle is being used in a commercial capacity, so you definitely don’t want to risk being out on the roads without any insurance in place.

Just as regular car insurance is affected by a variety of different factors, so is taxi insurance. The area that you work, the car you drive, and your personal record as a driver will all have an impact on the cost of your taxi insurance. We’d highly recommend taking a look at to compare the costs of taxi insurance. There is only one short form to complete and will do the rest of the work for you.

How Much Does it Cost?

Taxi insurance costs can vary just as much as regular Car insurance costs can, and there are just as many factors involved in determining how much it will cost you. Of course, the car you drive will affect the price. The same makes and models of car that cost the most to insure for personal use will be similarly expensive when you are applying for a commercial taxi licence.

The area you plan to operate in will also affect the cost of your taxi insurance. Those who are working in busy cities where accidents occur more frequently will have to pay more than those who are working in quieter and more rural locations.

Different insurers will also give differing weight to these variables, which can result in significant differences in pricing between insurers for the same vehicle. This is another reason why using a site like can save you a lot of time. As a general rule, taxi insurance will be more expensive than regular car insurance, sometimes as much as twice as expensive.

How Can I Keep the Costs Down?

You will be pleased to hear that there are a number of things you can do in order to keep the cost of your taxi insurance as low as possible. For example, a clean driving record will go a long way in helping you secure the insurance you need for a relatively low cost. Driving sensibly and safely, ensuring that you obey all the rules of the road all the time, will also keep your record clean and your costs low.

Once you have your own taxi vehicle, you should ensure that you keep it well maintained and have it serviced regularly. Keeping your vehicle in proper working order will be important for your customers; they won’t feel safe or comfortable in a car that seems like it’s been neglected. Keeping your vehicle clean, both inside and outside, seems much more professional and will leave a much better impression in your passengers’ minds.

If you haven’t yet chosen your taxi vehicle, you can save yourself a lot of money by specifically choosing a vehicle that is cheap to ensure. High end vehicles, modified vehicles and imported vehicles all command much higher prices than most other vehicles when buying insurance.

Working as a taxi driver is a great experience. Not only can you earn decent money while working a job that offers flexible hours, you will meet plenty of new people, see new places and have a different experience every day. You should take out taxi insurance in addition to your regular car insurance to ensure you are protected in the event of an accident.