What Is Private Hire Insurance And Who Needs It?

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In the UK as well as across Europe in Europe and the UK, private hire insurance is a requirement in Europe and the UK. The majority of countries have laws that make mandatory insurance for cars, but there are some countries like South Africa where it is not illegal to drive without any form of protection.

Insurance for vehicles, whether mandatory or not, must be considered as it serves to safeguard any person who is involved in an accident that was not at fault or their own. Insurance may cover injuries damages, theft, and injury.

If you drive with no appropriate insurance coverage for your motorbike, vehicle, or any other vehicle, you may be subject to fines and penalties. If you’re caught in the UK without insurance for your car, you may be fined or get penalty points added to your license. If you must appear in court, you could be disqualified and a fine that is unlimited. This is particularly the case when a serious incident was to happen.



There are various types of insurance policies that cover automobiles and their drivers and it is crucial to choose the best policy to make sure you’re covered. One of these is the private hire insurance

What is the definition of private hire insurance?

It’s also known as hire or reward insurance. It’s a kind of insurance policy that has designed to cover individuals who utilize their vehicle to perform a specific type of job.



Anyone booked to deliver food, packages, or even to transport passengers, needs to have insurance for private hire in place. The standard car insurance policy does not offer the appropriate kind of protection for this type of work.

The insurance is only available to those who can avail of the services and pre-book via a private hire company. This means that bookings are made via mobile apps, phone calls, or any other method prior to the pickup. This means that the taxi driver who is greeted by passengers is not subject to insurance for private hire.

Who requires private hire insurance?

Pay and hire is a term used to describe people whose work includes receiving payment for specific scheduled transportation services.

The following people would need Private hire insurance

Ride-share drivers

Cab drivers

Delivery drivers





Minicab drivers

Amazon Flex drivers

Only those who have pre-arranged services require insurance for private hire. Anyone who operates a cab service that takes passengers off the street would require an insurance policy.

Today, ride-sharing has become a massive business with around 3.8 million Uber drivers in the world currently, and about 45,000 working of them in London, UK. The US is still the largest market for ride-sharing. Uber along with Lyft dominate the market and have millions of driver working at present. Each of these drivers will require insurance for private hire.

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If someone drives to earn money or hire, their car is their livelihood. The insurance for Private Hire is designed in order to get people back to the streets and earning once more as quickly as possible.

How can I tell the difference between this insurance and private hire?

Insurance for cars can get difficult at times because of all the different insurance policies available. There are myriad questions about policies, particularly for those who are new to the market. Do you require comprehensive car insurance, or is third-party insurance sufficient? Do you need insurance prior to purchasing a car or is it possible to get it later? Should you opt for private hiring or public-hire insurance?

A taxi driver who has private hire insurance isn’t able to take fares at taxi stands or attempt to get them to stop. A taxi driver who picks up passengers in this manner isn’t able to make use of private hire insurance. Instead, they use what’s called public hire insurance.

Private hire vehicles cannot be parked in a taxi stand similar to those in railway stations or at airports but there are some that do. Insurance policies may be invalid when certain scenarios occur. For example, in a case where a person with regular car insurance spotted the payment of a passenger, their insurance policy could end up being invalid.

Private hire insurance can be available for companies that offer service that is prearranged. Public hire insurance is available to taxi drivers who are hired on the streets or at taxi stands.

What types of vehicles are covered by Private hire insurance?

If you decide to evaluate insurance companies, you’ll see that there may be huge differences in the types of insurance the company will insure as compared to another.

Insurance for Private Hire is often used mostly by taxi drivers as well as ride-share drivers. Delivery drivers typically get the same protection as couriers, and so on. Some insurance companies do not cover motorbikes, as they perceive them as riskier. Some will offer an individual policy for different drivers. You could find private hire insurance provided alongside policies targeted specifically at Uber drivers.



Within the UK it is typical to have private hire insurance to cover vehicles that can transport fewer than 9 passengers. Thus, minibusses can be insured however, only smaller ones.

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Typically insurance for private hire is offered for vans, limousines, taxis, or cabs, as well as other vehicles that are used for ride-sharing.

Are there any limitations regarding private hire insurance?

Each insurance policy comes with limitations that are in place. They are typically put in place to minimize the risks insurance companies have to take. For example, if someone has been previously disqualified, they may be at risk of a higher risk than someone who’s been driving safely for two years.

Before you can obtain private hire insurance make sure of any required licensing that is required in your area. For example, in the UK you will require a driver’s license for private hire. In the US the rules are slightly different. In Utah, there is a requirement for the endorsement of a taxi, while in California all you require is a regular driver’s license.

Private hire insurance pertains to the car and it is not about the person driving. So, you can’t employ another vehicle to perform private hire on the same policy. The vehicle must belong to the policyholder, or be leased for at minimum 12 months.

There might be a minimum age limit for the driver, and they could have to be had a valid license for a set amount of time. Convictions and disqualifications are involved however the terms and conditions vary between insurance companies. There are also restrictions on the number of people who travel, with some insurance companies putting the maximum number of passengers at four at any given time.

What do private hire insurance policies provide?

Private Hire Insurance

The insurance for Private Hire is typically accessible with add-ons that expand how many insurance policies are available. The basic policy will cover the driver as well as other third parties in the event of an accident occurring and being the fault of the driver. The policy will also cover the cost to fix the vehicle or provide a replacement if needed.

Standard insurance for private hire typically covers any damage or theft to vehicles, such as vandalism or fire. The extra insurance may provide help in the event of a breakdown, and the use of a different vehicle or van in the event that repairs are required. This is a must-have for those who depend heavily on their automobile to make money.

Does all insurance for private hire identical?

The essential aspects of insurance policies for private hire remain identical regardless of which service you select. However, there may be variations in the coverage offered and the price that the policies will cost.

The premiums vary based on the coverage and company, as well as how the charges are paid. A year-long private hire insurance policy could cost in the range of PS900 to around PS1,000. Additional insurance coverage to cover accidents could push premiums up, as would paying monthly, instead of annually.

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Additionally, certain insurance companies do not provide insurance for Uber drivers working under private hire since they view drivers who use ride-sharing to be riskier. So, they offer coverage specifically designed to meet this need.

One of the methods being utilized at the present is car Telematics. This allows you to track certain indicators about the behavior of a driver and, then provide them with lower premiums or charges.

What are the criteria to choose what is best Private Hire insurance?

It is always worthwhile to shop around when searching for any insurance policy such as private hire insurance, and taxi hire insurance isn’t any different.

Insurance comparison websites for cars will help people choose the right policy to meet their requirements and budget. Reviews are also extremely helpful nowadays as anyone can leave positive reviews or give an unflattering review of the insurance company. The reputation of an insurance company is crucial. Do they pay their claims quickly and do they show a track record of delaying payments?

The details of the policy are crucial too. Can the insurance company offer enough support to get you back on track quickly? Are they able to cover damages to the windscreen, or theft?

It is also worthwhile to research businesses that reward good driving. If you’ve had a track record of safe driving, an insurance policy that is telematic could be a good fit. Utilization-based insurance allows you to make your premium depending on how you drive rather than the typical measures. This means that you’ll get lower rates if you are a good driver.


In the UK it is no chance of driving legally without a kind of insurance. Unfortunately, many use it. Private hire insurance is essential security for those who are involved in an accident which is attributable to the driver hired and also rewards him for his work.

If you were involved in an accident and were uninsured, you are able to seize the car. For those who depend on their van or car to make a living, it would be a disaster.

Private hire insurance is for drivers who have the bookings in advance and is only to be used in this way. If you require insurance when transporting passengers or goods, talk to a company about the policy you require.

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