What is the difference between Public and Private Hire Insurance?
To the public, a taxi is just a taxi. But for a professional driver, the distinction between a Public Hire and a Private Hire vehicle is critical. These differences, set by your local licensing authority, directly impact how you can operate, the fares you can accept, and most importantly, the specific type of insurance you legally require. Having the wrong cover can invalidate your policy and put your livelihood at risk.
The Core Difference: How You Pick Up Passengers
The primary distinction between the two licences lies in how you are legally allowed to collect your passengers.
Public Hire Taxis (Hackney Carriages)
Often referred to as ‘black cabs’ or ‘hackney carriages’, Public Hire vehicles are what most people picture when they think of a traditional taxi.
- Hailing & Ranks: They are licensed to be hailed by passengers on the street.
- Taxi Ranks: They are the only vehicles permitted to wait for customers at designated taxi ranks (e.g., outside train stations, airports, and in city centres).
- Pre-Bookings: They can also accept pre-booked journeys.
- Appearance: They are often identifiable by an illuminated ‘TAXI’ sign on the roof and may have to meet specific local authority standards, such as being wheelchair accessible.
Private Hire Vehicles (PHVs)
Private Hire vehicles, sometimes called minicabs, must have every journey booked in advance through a licensed operator.
- Pre-Booking Only: A PHV must not be hailed from the street and cannot pick up passengers who haven’t pre-booked.
- No Taxi Ranks: It is illegal for a PHV to wait for fares at a public taxi rank.
- The Operator: All bookings must go through a licensed Private Hire operator, whether it’s a traditional cab office or a ride-sharing app. The operator records the details of every journey.
Why Is The Insurance Different? It’s All About Risk
The title on your policy might look similar, but insurers view the two operations very differently, which is reflected in the policy and the premium.
- Public Hire Insurance Risk: Insurers often consider Public Hire to carry a higher risk. This is because drivers can pick up any member of the public directly from the street, meaning the passengers are not vetted in any way. Journeys are often in dense, unpredictable urban environments, increasing the statistical risk of an accident. This higher perceived risk typically results in a more expensive premium.
- Private Hire Insurance Risk: With Private Hire, every journey is logged by an operator. There is a digital or paper trail for every passenger, which an insurer sees as a lower risk. The ability to vet or even ban problematic customers provides an extra layer of security. This accountability and traceability usually lead to a more favourable risk profile and, consequently, a more competitive premium.
Both policies include essential Public Liability Insurance to cover injury to your passengers or damage to their property, but the premium for this cover will be adjusted based on the specific risks associated with your licence type.
Where Do Uber and Other Ride-Sharing Apps Fit In?
Drivers for apps like Uber, Bolt, and Free Now are licensed by local authorities as Private Hire drivers.
This means they operate under the same rules as any other Private Hire vehicle: all their journeys must be pre-booked through the app, and they are not permitted to be hailed from the street or use taxi ranks.
Therefore, an Uber driver needs Private Hire Taxi Insurance. It is essential to note, however, that not all taxi insurance providers will cover drivers working for ride-sharing apps. It is crucial to declare this work to your insurer or use a specialist broker who can place you with a provider that explicitly covers it.
Getting the Right Cover is Non-Negotiable
Choosing the cheaper policy type when you don’t hold the correct licence is a false economy. If you have Private Hire insurance but are found to be picking up passengers from the street, your insurance will be void. In the event of an accident, you would be considered uninsured and held personally liable for all costs, alongside facing prosecution.
Join the 1000’s Taxi Drivers choosing Riviera for their Insurance
Our taxi insurance products are suitable for private hire taxi insurance and public hire vehicles. We can cover Hackney carriages, black cabs and minibuses, as well as traditional saloon vehicles. More recently, we’ve added Uber drivers insurance to our list of available products.
Working with a large panel of taxi insurance companies, we can quote you on a range of insurance solutions providing as much or as little cover as you need. We can also offer flexible monthly payment terms to help you spread the cost of your insurance cover.
A team of friendly, fully trained advisors can offer you the additional protection of legal expenses cover, public liability, personal accident, breakdown cover, windscreen repair and even employers’ liability cover.
We offer a choice between and an online quote, or you can request a call back from our team at a time to suit you. Finding cheaper taxi insurance has never been easier.
