Thinking about becoming a private hire driver? Whether you are looking to drive for Uber, Bolt, or another platform, it can be a rewarding way to earn a living on your own terms.
But one of the first things you will need to sort out is your insurance. Private hire insurance is a legal requirement, and if you are new to the industry, you probably have a few questions about what it involves and how much it costs.
This guide covers everything a new driver needs to know about private hire taxi insurance, from what it is and who needs it, to how you can keep your costs as low as possible.
Do I need private hire insurance?
Yes. If you are carrying passengers for payment, private hire insurance is a legal requirement. Platforms like Uber and Bolt will require proof of valid hire and reward insurance before you can start accepting rides.
It does not matter whether this is your full-time job or a part-time side hustle. If you are earning money from carrying passengers, you need the right insurance in place.
What are the requirements to become a private hire driver?
Before you can get on the road, you will need to meet certain licensing requirements. These vary depending on your local authority, but here are the general requirements:
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Age: Most local authorities require you to be at least 21 years old. In London, Transport for London (TfL) sets the minimum age at 21. INSHUR offers cover for those aged 22 and over, so this is something to consider when looking for insurance, as other providers may have higher age restrictions.
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Driving licence: You will need a full UK driving licence. TfL requires you to have held your licence for at least 3 years, though requirements vary by area.
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Private hire licence: You must hold a private hire driver licence issued by your local authority. This involves an application, background checks, and in some areas, additional assessments.
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DBS check: A Disclosure and Barring Service (DBS) check is required to confirm your criminal record status.
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Medical assessment: Some authorities require a medical examination to confirm you are fit to drive professionally.
In London specifically, TfL also requires drivers to pass the SERU (Safety, Equality and Regulatory Understanding) assessment. This is an online test that covers topics such as passenger safety, equality, and regulatory requirements. It is worth checking the specific requirements for your local authority early on, so you know exactly what you need before you start the application process.
How much does private hire insurance cost?
One of the biggest questions for new drivers is: how much is private hire insurance?
Just like any motor insurance, the cost of your private hire policy depends on your individual circumstances. There is no single fixed price. Factors that influence your premium include:
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Your age: Younger and newer drivers typically pay more. With less driving history, insurers see a higher level of risk. Over time, as you build experience and a clean record, your premiums should come down.
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Your location: Where you live and drive makes a difference. Urban areas with heavier traffic, more pedestrians and higher rates of reported accidents or thefts tend to result in higher premiums.
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Your driving history: Any previous claims or convictions will affect your price. Drivers with a clean record and no recent claims are generally offered better rates.
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Your vehicle: The type, age and value of your car all play a role. Vehicles that are cheaper to repair tend to come with lower premiums.
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Repair costs: The cost of vehicle repairs has been rising across the industry. The Association of British Insurers (ABI) reported that repair costs in 2024 were £1.5 billion more than in 2023, driven by higher labour, energy and parts costs.
As a new driver to private hire, you should expect to pay more at the outset. But there are practical steps you can take to manage your costs, which we will cover below.
How to save money on private hire insurance
Getting the best deal on your taxi insurance is important, especially when you are just starting out. Here are some ways to keep your costs down:
Go annual
If you plan to drive regularly, an annual policy is almost always more cost-effective than renewing every 30 days. With INSHUR, you can spread the cost of an annual policy across monthly payments using our premium finance option, so you do not have to pay everything upfront. Your price is also locked in for the full year, protecting you from any mid-year price increases.
Build your No Claims Discount
Your No Claims Discount (NCD) is one of the most valuable tools for reducing your insurance costs. For every year you drive without making a claim, your NCD grows, and your premium should come down at renewal. With an INSHUR annual policy, you build your private hire NCD automatically, which is separate from your personal NCD. If you are on a 30-day policy, you will need 12 consecutive months of cover without a break to build it up.
Note: Private hire NCD is different from NCD earned on a Social, Domestic & Pleasure use (SD&P) policy, as it's a different type of driving.
Quote early
Do not wait until the last minute to renew or get a new quote. Leaving it late can mean higher prices. Give yourself enough time to compare your options and find the best deal.
Consider an electric vehicle
INSHUR is working on making insurance more competitive for EV drivers. If you are thinking about going electric, this could work in your favour when it comes to insurance costs.
Take advantage of rewards
INSHUR offers renewal discounts based on performance across the year, meaning if you drive safely, you’ll be rewarded; it’s a win-win.
What does INSHUR private hire insurance include?
INSHUR private hire insurance is designed to get you on the road quickly and keep you covered while you work. Our policies include:
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Social, Domestic and Pleasure (SD&P): You are covered for personal use of your vehicle at no extra cost, even when you are not working.
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Platform compatibility: INSHUR works with major ride-hailing platforms, including Uber.
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Flexible policy options: Choose from 30-day policies for flexibility, or annual policies for better value.
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Monthly payments: Spread the cost with our premium finance option instead of paying in one go.
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Additional Income Streams: We also include use for fast food delivery if you’re looking to gain an additional income stream alongside private hire.
Annual vs 30-day policies: which is better for new drivers?
When you are just getting started, you might be tempted to go with a 30-day policy to keep things flexible. That makes sense if you want to test the waters first. But if you are planning to drive regularly, an annual policy is usually the smarter choice. Here is why:
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Consistent pricing: Your rate stays the same for a full year.
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Easier NCD: You build your No Claims Discount automatically, no worrying about gaps in cover.
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Less hassle: One renewal per year instead of twelve.
If you started on a 30-day policy, switching to annual is easy. And with monthly payment options, the upfront cost does not have to be a barrier. Get a private hire quote with INSHUR today.
Private hire insurance FAQs
What is the minimum age for private hire driving?
This varies by local authority. In London, Transport for London (TfL) requires drivers to be at least 21 years old. Check with your local council for their specific requirements.
Can I drive for Uber with INSHUR insurance?
Yes. INSHUR private hire insurance is compatible with Uber and other major ride-hailing platforms.
Is private hire insurance the same as taxi insurance?
Private hire insurance and Hackney Carriage (black cab) insurance are different. Private hire drivers can only accept pre-booked rides, while Hackney Carriages can be hailed on the street. Make sure you have the right type of cover for the work you are doing.
How do I get covered?
With INSHUR, the whole process is online. Get a free quote, choose your policy, and you could be covered in minutes. No paperwork, no waiting around.
Ready to get started?
Getting private hire insurance sorted is one of the first steps to starting your driving career. With INSHUR, it does not have to be a hassle. Create an account, get a free personalised quote, and you could be on the road in minutes. 100% online, straight from your phone. Get your free private hire insurance quote from INSHUR today.
Sources
Association of British Insurers (ABI) - Motor insurance premium tracker and repair cost data. abi.org.uk
Transport for London (TfL) - Private hire driver licensing requirements. tfl.gov.uk/info-for/taxis-and-private-hire
Department for Transport - Road casualty statistics for Great Britain. gov.uk/government/statistics/reported-road-casualties-great-britain-annual-report
GOV.UK - Disclosure and Barring Service (DBS) checks. gov.uk/government/organisations/disclosure-and-barring-service
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