Private Hire Insurance (PHV Insurance) Pay Monthly

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By Eamonn Turley from the MultiQuoteTime Editorial Team - Fact checked July 2023

Private hire insurance, abbreviated to PHV cover, is a speciality type of cover required if you're ferrying passengers in return for a reward. This hire for reward taxi service is not for operators of the black cabs or others that can be called over from the curb, but for operators that have pre-booked clients or part of a shuttle service where clients can call for their services online or over the phone.


The panel of taxi insurance providers offer private hire drivers in all the UK authorities with a large demand for Manchester private hire insurance followed by Liverpool taxi insurance amongst many other UK cities and towns.

What is Private Hire Insurance?

Private hire insurance is an insurance cover for drivers that provide a chauffeur style service for the public on a prebooked basis. This is in contrast to a taxi can be hailed, but with private hire it must be booked. Subtle, but it is the difference that distinguishes private hire from taxi driver insurance. A good example of private hire service is Uber.

Private hire insurance is also referred to as hire and reward insurance.  Hire for reward is self-explanatory, you as a driver are rewarded for being hired to drive a passenger from A to B or deliver goods from A to B. Hire for reward applies to both taxi drivers and private hire drivers.

Types of PHV Cover

If you are using your car for private hire, comprehensive insurance is recommended to provide cover when an accident happens.

  • Comprehensive: If you are using your car for private hire, comprehensive insurance is recommended to provide cover when an accident happens.
  • Third Party Only: This is the lowest level of cover and the minimum required by UK law. Cover is provided to the other party only
  • Third Party with Fire & Theft: A level up from third party providing additional cover for damage by fire or actual theft of vehicle. 

Is Private Hire Insurance Pay Monthly Available?

Yes, most private hire insurance brokers will let you pay on a monthly basis. This is popular if you are just starting out or working a few months per year.

Who is Required to Have Private Hire Insurance Monthly?

Those operators of any hire for reward vehicles that can’t be called from the curb are required by law to have PHV insurance. This includes operators of private chauffeur companies and on call taxis, along with Uber and other ride-share services. Because Uber was instrumental in starting this disruptive private hire booking service, the cover is often referred to as taxi insurance for Uber drivers.

Since every private hire operator is different, each policy can be tailored made to meet their specific needs, budget and requirements.

What Road Insurance is Required by Law for Private Hire Drivers?

Commercial vehicle comprehensive or third party only vehicle cover is required by UK law.

This area of cover is called road risk. This is cover for when the vehicle is involved in an accident. When you are at fault, third party cover will only cover the other vehicle. With comprehensive, both vehicles are covered along with the passengers possessions independent of who is at fault.

Is Private Hire Insurance Available for Electric Vehicles?

The electric vehicle is now becoming a popular choice with private hire drivers, expensive, but the payback is the saving on fuel. To get the most savings, make sure you charge your EV at home, as charging stations can work out as expensive as using fossil fuels. Choosing the best electric private hire vehicle for your requirements and budget is important, with the MG5 Estate a firm favourite with its expectational luggage space and budget price.

What Cover is Optional For a PHV Insurance Policy?

There are three main areas of additional cover a private hire operator can have to help ensure their business can remain operational independent of the obstacles that are encountered. These three items of optional cover include breakdown assistance, public liability and fleet covers. Each of them has multiple layers of cover so that the private hire operator can have the coverage they need that fits their budget.

  • Breakdown cover for all levels of coverage will include having a mechanic attend to your vehicle on the road when it can no longer move forward. The towing of the vehicle has different levels of cover to choose from, as does the onward travel for the operator and their passengers.
  • Public liability is the cover to add if you were only going to add one of the optional covers to your private hire insurance policy. This is protection against a lawsuit by a member of the public who files a claim against you or your service. Without this cover, you will be personally responsible for all legal fees and settlement if the claim against you is found to be valid.
  • Fleet insurance is a very good way to lower the costs of the vehicles a business operates when they have 2 or more being used as private hire for reward service. Nearly all insurance firms provide a discount for adding vehicles to a policy once one is covered by them with vehicle insurance.

How Much Does Private Hire Vehicle Insurance Cost in the UK?

The price will depend on a number of factors, most of which are used to determine the costs of standard car insurance, for example the driving history and age.

The driving records include involvement with accidents, both the driver's fault and when just a victim. Also included are the number of road violation summons issued to the driver. The more activity in these areas, the higher the insurance premiums will be.

The criminal record of the operator also influences the cost of the insurance premium. This includes both drink-driving offences and other criminal offences. If you have points on your licence, expect to pay a higher premium.

The vehicle value and its maintenance records also play a part in determining the cost of the insurance premium. The vehicles with the highest risks are expensive vehicles and old vehicles that have been maintained poorly.

Taxi private hire insurance is available for drivers using these apps:

  • Mytaxi
  • Kabbee
  • Radio Taxi
  • Gett
  • Ola
  • Com Cab

Why is Private Hire Car Insurance Expensive?

The key reason is that you will be covering many more miles than a traditional driver. Add to this working in all weather conditions, late at night and working within time constraints. All these just make you statistically a higher risk to the taxi insurance provider, and this is reflected in your private hire car insurance policy premium. 

Steps To Lower the Cost of Private Hire Taxi Insurance

The major factors that affect the price will be your driving history, size of your private hire taxi vehicle and miles covered. We have listed some of the ways that can help to reduce your annual premium below. 

  • An easy way to lower the cost of your private hire taxi insurance premium is to pay it annually. When payments are made, there is interest that is incurred on the unpaid balance each month.
  • Having a black box and or a dashcam installed in the vehicle is a positive way to prove the operator is driving safely and within the law.
  • The security of the location where the vehicle is parked when not in use is also a factor in the cost of the premium. When this location is in a locked facility like a shed or garage, the insurance firms will look at it favourably.
  • Get multiple quotes. This will enable you to compare different offers and select an offer that both meets with your requirements and is within your budget.
  • No Modifications. Mods must be declared to the insurance provider and these inevitably increase your premium.
  • Optional extras: Ask yourself two question. Do I need that extra? Can I get it cheaper elsewhere? This should help you reduce overall cost. Take private hire breakdown cover it is often cheaper to purchase direct from a local roadside recovery service.

Optional Add-ons

The taxi breakdown cover is another option to consider. Not only will aid be sent to assist you with the problem, but your clients can be taken to their destination, which will keep your reputation as a reliable driver intact. It is important to choose a reliable car for private hire use, so time off the road is minimal.

PHV insurance is a requirement by the UK government for anyone that can be called to take a client to their destination in return for a reward.

PHV Insurance FAQ's

Can my taxi be used for personal use?

Taxis can be used for personal use, but this must be included in the insurance policy, if not ask the broker to include private use.

Is Private Hire Taxi Insurance London Available?

A private hire policy is not limited to any one location within the UK. This means that your policy will cover you if you wish to provide private hire service in London, Manchester, Liverpool etc.  The cost of London private hire insurance may be more expensive as risks of theft is higher in highly populated locations.

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