Taxi fleet insurance

A straightforward guide for UK taxi fleets

Taxi fleet insurance brings multiple licensed vehicles under one policy with a single renewal date. For many operators, this simplifies admin and can reduce per-vehicle costs when risk is well managed. It is designed for private hire and public hire fleets, including mixed vehicles and changing driver rosters. In a market where claims and repair bills have climbed, robust cover helps safeguard your business against third party liabilities, vehicle damage and passenger-related incidents.

Premiums have risen in recent years due to higher repair costs, longer repair times and higher second-hand values. Electric and hybrid taxis can be 25% costlier to repair, and the number of claims has increased. In 2023, fleet premiums rose sharply, and although 2025 saw a slower pace of increases, prices remain elevated. Well-managed fleets typically see per-vehicle premiums in the region of £500 to £1,200, with higher-risk fleets closer to £2,000.

For context, a private hire driver with a clean record might pay roughly £1,454 per year for individual taxi cover, while newly badged drivers and public hire drivers often face significantly higher ranges. Fleet operators also face risks from rising theft, higher accident frequencies in busy UK cities, and driver shortages that can push accident likelihood up. This guide explains what taxi fleet insurance covers, who it suits, how pricing works, and the practical steps you can take to control risk and costs.

Insurance can offer real financial protection - but only when you understand what is covered and where the gaps are.

What is covered and how policies operate

A fleet policy typically allows you to insure three or more licensed taxis under one umbrella, often with flexible driver options. You can choose third party only, third party fire and theft, or comprehensive cover. Comprehensive policies usually include third party liability for injury and property damage, plus damage to your own vehicles from accidents, fire or theft. Windscreen cover, legal expenses, and breakdown can be included or added as options.

Policies often extend to mixed fleets, combining saloons, MPVs and black cabs, and can allow named or any licensed driver subject to underwriting. Some insurers offer cover for taxi bases, public liability for waiting areas, and employer’s liability where you have staff. If your fleet uses electric or hybrid vehicles, confirm cover for battery, charging cables and specialist repair networks.

Claims are usually handled on a per-incident basis. For example, if a driver is involved in a collision that injures a passenger and damages another vehicle, third party liability handles injury and property claims while comprehensive cover pays for your taxi repairs, subject to the excess. If a vehicle is stolen, theft cover applies, though you will be expected to show reasonable security measures. Exclusions can include unlicensed drivers, unapproved modifications, or carrying passengers for hire without the correct licence. There may be limits on personal belongings, audio equipment, and courtesy car availability during repairs. Always check excesses, authorised repairers, and notification timeframes.

Who genuinely benefits

Taxi fleet insurance is well suited to operators managing multiple vehicles across private hire, public hire, or mixed fleets, especially where drivers rotate between vehicles. It can be a good fit for ride-hailing operators who need flexible driver permissions and rapid vehicle substitution. Businesses expanding beyond two vehicles often find the single renewal and centralised documentation helpful, especially when managing compliance with local licensing conditions.

It may be less suitable if you run a single taxi or two vehicles with stable named drivers, where individual taxi policies could be comparable or cheaper. If vehicles are not used for hire and reward, a standard motor fleet or commercial vehicle policy might be more appropriate. The key is whether the fleet structure and operational profile benefit from consolidated cover and flexible driver and vehicle management under one insurer relationship.

Cover levels and useful add-ons

1. Third party only

   • Covers injury and property damage to others when your driver is at fault.
   • Does not cover your own vehicle’s damage or theft. Suitable only where vehicles have low values and self-insurance is viable for repairs.

2. Third party, fire and theft

   • Adds protection if your vehicle is stolen or damaged by fire.
   • Still excludes your own vehicle’s accidental damage. Often used when balancing premium and asset value.

3. Comprehensive

   • Includes third party liability plus your own vehicle’s accidental damage, fire and theft.
   • Often includes windscreen and can be paired with approved repair networks for faster turnaround times.

4. Driver basis

   • Named driver: usually cheaper but less flexible.
   • Any licensed driver: higher premium but easier scheduling and cover during driver changes.

5. Excess structures

   • Higher voluntary excess can reduce premiums but increases out-of-pocket costs at claim time.

6. Optional add-ons

   • Legal expenses: covers legal representation and recovery of uninsured losses.
   • Breakdown: roadside assistance with taxi-compatible recovery.
   • Courtesy taxi or hire replacement: helps maintain revenue during repairs, subject to availability and limits.
   • Public and employer’s liability: protects your base operations and staff.
   • Personal accident for drivers: limited injury benefits after an at-work incident.
   • Telematics and cameras: can lower premiums by evidencing safe driving and fraud reduction.

Choose the lowest cover that safely fits your risk - not just the lowest price.

Prices and what drives them

Prices are examples, not guarantees. Insurers assess each fleet individually.

Who can apply and what insurers check

Most insurers require at least three licensed vehicles for a fleet policy, though some will consider two. Vehicles must be roadworthy, licensed for hire and reward, and correctly plated per local authority rules. Drivers need valid UK taxi or private hire licences and suitable age and experience, which varies by insurer. Mixed fleets are usually acceptable, but high-performance or heavily modified vehicles may be excluded.

You will be asked for schedules of vehicles and drivers, licence and badge details, no claims information, and prior claims data. Insurers may request telematics or dash cams for higher risk fleets. Common decline reasons include adverse claims history, multiple unresolved convictions, persistent non-disclosure, poor vehicle maintenance records, or inadequate security in high-theft areas. Being transparent and providing complete documentation helps avoid delays and pricing surprises.

From quote to claim - simple steps

1. Gather vehicle, driver, licence and claims details for an accurate quote.
2. Decide on cover level, driver basis and any essential add-ons.
3. Request quotes from specialist taxi fleet brokers or insurers.
4. Share proof of licences, NCD, and any telematics or training measures.
5. Review exclusions, excesses and repairer networks before you buy.
6. Pay the premium or set up instalments and receive policy documents.
7. Report incidents promptly, follow the claims process and keep records.
8. Monitor performance and update schedules to keep cover accurate.

Balanced view - benefits and trade-offs

Key checks before committing

Review policy wording carefully. Confirm who can drive, any age or licence restrictions, and how substitute vehicles are added. Check excesses for accidental damage, windscreen and theft. Understand repairer requirements and whether genuine parts are used. Ask how long courtesy or replacement hire vehicles are provided, and any daily caps. Confirm cover limits for personal belongings, audio equipment and charging cables. Note renewal pricing practices and how claims affect no claims discounts. Ensure your documents, licences and schedules are accurate and updated throughout the year.

Alternatives that might fit better

1. Individual taxi insurance - suitable for owner-drivers or very small operations without rotating drivers.
2. Standard motor fleet insurance - for businesses with vehicles not used for hire and reward.
3. Courier or private hire goods cover - if the operation is delivery-focused rather than carrying passengers.
4. Public liability and employer’s liability - to protect your base, staff and waiting areas alongside vehicle cover.
5. Short-term or usage-based policies - flexible cover if vehicles operate intermittently or across multiple platforms.

FAQs

Q: How many vehicles do I need for taxi fleet insurance? A: Many insurers start at three vehicles, though some accept two. The key is that all vehicles are licensed for hire and reward, and you can provide driver and claims information.

Q: Are electric taxis more expensive to insure? A: Often yes. EVs can be about 25% costlier to repair, and parts availability may extend repair times. Good security and repair networks help manage costs.

Q: Will telematics and cameras reduce my premium? A: They can. Evidence-based risk controls often attract better terms over time, especially when paired with driver training and low incident rates. Results vary by insurer.

Q: Can new drivers be included on a fleet policy? A: Yes, but premiums are usually higher. Newly badged drivers face steeper costs due to limited experience. Some insurers set minimum ages or experience thresholds.

Q: What is pushing premiums up at the moment? A: Higher repair costs, longer repair durations, rising claim frequencies and increased theft risk. Market adjustments have slowed in 2025 but rates remain elevated.

Q: Is a courtesy taxi guaranteed during repairs? A: Not always. Availability depends on your policy and local supply. Check daily limits, maximum duration and whether a taxi-plated replacement is guaranteed.

Q: How do claims affect renewal? A: Multiple or high-value claims typically increase next-year premiums and may reduce no claims discounts. Accurate reporting and strong risk controls help limit the impact.

What to do next

If taxi fleet insurance looks right for your operation, compare like-for-like quotes from specialist providers. Share complete driver and claims data, and discuss telematics, training and security measures. Taking time now to set the right cover can help control costs and protect your vehicles, drivers and passengers. You stay in control throughout.

Next step: list your vehicles and drivers, then request two or three specialist quotes.

Important note

This guide is general information, not personal financial advice. Policy terms vary by insurer and local authority rules. Always read your policy wording, check limits and exclusions carefully, and ask your insurer or broker to confirm anything unclear before you buy.