Pay As You Go Taxi Insurance
– Only Pay When You’re Working
Compare PAYG taxi insurance from specialist UK brokers. Only pay for the hours you drive — a flexible alternative to pay monthly taxi insurance, ideal for part-time private hire and hackney carriage drivers.
Get Your PAYG Taxi Insurance Quotes
Compare pay-per-hour cover from specialist brokers
PAYG cover requires an active SD&P policy. Quotes are provided by a panel of specialist taxi insurance brokers.
GET MULTIPLE QUOTES →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 use 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.
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 does Pay As You Go Taxi Insurance work?
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.
PAYG vs. Annual
| Feature | Pay As You Go (PAYG) | Traditional Annual |
|---|---|---|
| Cost & Flexibility | ||
| Upfront Cost | Low deposit / Pay-per-hour | Higher deposit or full payment |
| Commitment | Flexible – Stop anytime | 12-month contract |
| Usage & Suitability | ||
| Best For | Part-time / Weekend drivers | Full-time (40+ hours/week) |
| Cost Efficiency | Saves money if driving limited hours | Often cheaper for high-mileage |
| Requirements | ||
| App Integration | Required (Uber/Bolt/Zego) | Not usually required |
*Note: Comparisons are for illustrative purposes. Final premiums and suitability depend on individual circumstances and underwriter criteria.
Choosing the Right Cover: Key Considerations for UK Taxi Drivers
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.
❌ Typical Policy Exclusions
Most taxi policies will not pay out for:
- Theft with Keys Inside: If you leave your taxi running or the keys in the ignition while picking up a passenger, theft is usually excluded.
- Undeclared Deliveries: Most taxi policies cover passengers but exclude food or parcel delivery (e.g., Uber Eats/Deliveroo) unless specified.
- Unlicensed Use: Your insurance is void if your taxi badge, PHV licence, or MOT has expired.
- Cash Takings: Standard policies rarely cover the theft of cash or takings kept in the vehicle.
- Undeclared Modifications: Performance tweaks or cosmetic changes not reported to the insurer can void your claim.
- Driving Outside Region: Some policies are “geo-fenced” to your licensing area and won’t cover fares picked up elsewhere.
Important: This is a Summary Only
The exclusions listed above are common examples found in UK taxi policies, but they are not exhaustive. All insurance products have specific limitations, excesses, and conditions.
Before purchasing, you must review your individual Insurance Product Information Document (IPID) and full Policy Wording to ensure the cover meets your specific requirements.
Specialised Guides: Zego, Acorn & Uber Taxi Insurance Requirements
Expert Guides to Leading UK Taxi Insurers
Explore our in-depth reviews and platform-specific requirements to find the right cover for your driving style.
Zego Taxi Insurance
A deep dive into Zego’s flexible 30-day and annual policies. Learn how Zego Sense telematics can reward your safe driving with lower renewal rates.
Read Zego Review ➔Uber Driver Insurance
Essential requirements for Uber partners. We explain the “Instadoc” digital verification process and how to stay compliant with Uber’s 2026 vehicle standards.
Uber Driver Guide ➔Acorn Taxi Insurance
Trusted for over 40 years, Acorn specialises in cover for drivers with points, claims, or those new to the private hire industry.
Read Acorn Review ➔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 Resources for UK Taxi & Private Hire Drivers
Industry Support & Helpful Resources
Licensed Taxi Drivers’ Association
A membership group for taxi drivers, the LTDA is also a support group for those that work in the trade.
Access LTDA Support ➔National Private Hire Association
The NPHA is an organisation that provides useful support and help for cabbies everywhere.
Explore NPHA Resources ➔Discover other taxi insurance products
Taxi Insurance Guides
Helpful articles and resources for taxi drivers
