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Guide to Pay As you Go Taxi Insurance 

Pay-as-you-go taxi insurance (PAYG), also known as short-term taxi insurance, is a flexible insurance model in which taxi drivers pay premiums based on their actual usage and driving behaviour. This innovative approach utilizes technology, such as telematics devices or mobile apps, to track the distance travelled, time spent on the road, and other relevant factors.

The insurance cost is then calculated in real-time, offering drivers a more personalised and cost-effective coverage plan compared to traditional fixed-rate policies. Pay as you go cab insurance policies can cover both public hire or private hire taxi drivers, their vehicles and customers. This model is designed to benefit drivers by providing fair pricing and encouraging safer driving habits. 

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Multi Quote Time provides access to a specialist panel of taxi insurance brokers. These brokers will be in contact via the telephone to provide you with quotes on your motor fleet insurance

Is there Pay-as-you-go insurance cover for Taxi Fleet? 

Yes, some insurers offer pay-as-you-go insurance coverage for taxi fleets. Fleet operators and self drive fleet owners with two or more vehicles can take advantage of this taxi insurance model to tailor their insurance costs based on the actual usage and behaviour of their entire fleet.

PAYG taxi fleet insurance is often considered a cheaper alternative to traditional taxi fleet insurance, which requires you to pay premiums for other vehicles even when they are not in use

How Pay-as-You-Go Taxi Insurance Works 

The rules of a pay-as-you-go or temporary taxi insurance policy depend largely on the insurer. However, this type of insurance product works by integrating technology to track the usage and behaviour of individual public hire or private hire taxi drivers.

Some insurers partner with ride sharing apps and taxi work providers to link your insurance account to their apps. This way, they can automatically track your driving activities and collect data relevant for taxi insurance quotes and premium calculations.

Others may require that you install telematics devices in your vehicle that can continuously collect and transmit real-time data points to the insurance provider. Data like distance travelled, time on the road, driving habits like speed, adherence to traffic rules, braking patterns, etc, are collected to calculate your premium.

Payment is often structured in a pay-as-you-go format, meaning drivers are billed for their insurance on a periodic basis (e.g., monthly) rather than a fixed annual policy premium.

Nevertheless, some pay-as-you-go insurance models may require that taxi drivers start by paying a daily premium based on how much they use their vehicle (extra fees might apply). After prepaying, they get a starting point of 1,000 miles for driving. Every time a driver goes over this 1,000 miles limit, they get a charge. These charges may reduce the claims discount on the driver's insurance policy rate. 

What does Pay as you go taxi insurance cover? 

If you provide hire and reward service to private or public customers, you need your taxi insurance to have some level of coverage for yourself, your vehicle and your passengers.

This is essential whether you're a full-time or part-time taxi driver. Here are the different types of insurance you'll need whether you operate private taxis for pre-booked fares or public-hire taxi vehicles.

Vehicle Insurance

  • Third party insurance or third party only insurance is the minimum vehicle insurance required by the law to offer coverage for damages you cause to others and their vehicles during the course of your taxi activities. Unfortunately, this cover level doesn't offer protection for your own vehicle or personal property.
  • Third party fire and theft offers everything in the third-party only cover level. However, this time, you'll be covered for damages to your vehicle caused by fire or theft.
  • Comprehensive cover includes everything in previous cover levels plus insurance for your vehicle and property in the event of an accident, damage, or loss. This may also offer breakdown cover and other additional cover.

Public Liability Cover

This insurance product provides cover in case you are sued by members of the public or passengers while operating your taxi. Some insurers will include this in your standard policy, while others may expect you to purchase it separately. A look at your policy wording will tell you what you should expect from your insurer.

Taxi Base Insurance

Taxi Base Insurance is for you if you run your taxi business from an office or a station. This helps to cover your building. You may also want to include employers’ liability cover to cover for claims of injury or damages from your employees.

All categories of PAYG taxi insurance now available

  • Mini Cab : When you need to compare quotes online quickly for your minicab insurance premium.
  • Public hire insurance is one of the main categories of taxi insurance, also referred to as PCO insurance in London
  • Chauffeur : Do you provide an exclusive chauffeur service and need chauffeur insurance
  • A growing sector is the private hire taxi sector. Private hire drivers can not be flagged down, but must be prebooked. They have a slightly different risk profile and a range of polices exits including PHV insurance that can be paid monthly. Uber's drivers also fall into the private hire category, and Uber taxi driver insurance is also available.

Key Names for UK Taxi Insurance 

Many insurance providers offer taxi insurance, some like Patons taxi insurance specialises in only providing taxi and private hire insurance, we have complied a list below of the top names in this insurance sector.

Taxi Insurance FAQ's

Does my taxi insurance cover me for driving other cars?

Taxi insurance provides cover only for the vehicles listed on the policy, not for other vehicles. For other vehicles, you will need to either get them included or take out a separate policy.

Can I pay my taxi insurance monthly?

Most brokers are flexible when it comes to arranging payment terms. However, choosing monthly payments may include extra interest charges.

Is public liability insurance included?

Most taxi policies will include public liability as standard, but exceptions do exist, so check your policy wording. It can always be added or taken out as a separate item.

Is Taxi breakdown cover available as a standalone policy?

Yes, this can be bought as a separate policy or bundled into your taxi insurance policy.

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