By Tahir Abbas, Editor · Last updated 1 November 2026
Taxi insurance covers vehicles used to carry paying passengers: traditional taxis, private hire cars and rideshare vehicles. Because taxis spend long hours on the road with passengers aboard, they need cover that recognises the higher mileage, the passenger liability and the fact that the car is a business asset.
This guide explains what taxi insurance typically covers, what it leaves out, who it suits, and how to compare policies before you buy.
What taxi insurance typically covers
- Liability for injury and property damage caused to others
- Passenger liability for injuries to fare-paying passengers
- Damage to your own vehicle in an accident, on comprehensive policies
- Theft, fire and vandalism, on comprehensive policies
- Public liability for incidents away from the vehicle, where included
What taxi insurance typically does not cover
- Driving outside the declared use, such as private hire on a public hire policy
- Unlicensed drivers or drivers not named on the policy
- Wear and tear and mechanical breakdown
- Loss of earnings while the vehicle is being repaired, unless added
Who taxi insurance is for
Taxi drivers, private hire drivers, rideshare drivers and fleet operators. Standard car insurance does not cover carrying passengers for payment, so specialist cover is essential — driving uninsured risks fines, licence loss and personal liability.
How to choose and compare taxi insurance
- Match the policy to your licence type: public hire, private hire or rideshare
- Check passenger liability limits and whether they cover all occupants
- Consider replacement vehicle cover, so you keep earning after an accident
- Compare no-claims protection and excess levels
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Sources and Disclosure
This guide is general information, not financial advice. Plan features described here are general and vary by insurer and state; always read the sample policy before you buy. For the rules governing insurance in your state, see the consumer resources of the National Association of Insurance Commissioners (NAIC). Disclosure: Being Insurance is an independent comparison site. We may earn a commission when you buy through links on this page. That never changes which companies we list or the order we present them in.