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The difference between public hire and private hire taxis

If you’re looking into how to become a taxi driver, you’ll need to know that not all taxis are the same.

9.12.24

By Alan Boswell Group

The difference between public hire and private hire taxis

There are two very distinct ways they can operate and if you break the rules, you could be fined. In some cases, you could even be disqualified from driving.  

Here, we look at the difference between public hire and private hire taxis, why it matters, and how it affects your insurance.  

What are public hire taxis? 

Public hire taxis are officially called Hackney carriages but are often commonly known as ‘black cabs’. These taxis can: 

  • be hailed on the street; 

  • use designated taxi ranks; 

  • be pre-booked. 

Public hire taxis are usually distinctive with a taxi sign on the roof and clear markings on the side of the vehicle. Their number plates will also show that they’re a licensed Hackney carriage.  

Public hire taxis can only operate within the area of their licensing authority. Taxis can transport passengers outside of this but only if the journey has been pre-booked within the boundaries of the licensed area. An example is if your cab has been booked for an airport run.  

Taxis cannot pick up passengers from taxi ranks outside their area either.  

What is public hire taxi insurance? 

Whether you drive a public or private hire taxi, you’ll need suitable taxi insurance. These policies give you specialist cover that allows you to transport people (and goods) in exchange for payment.  

Policies can also include public liability insurance and breakdown cover.   

What are private hire taxis? 

Private hire taxis can only be pre-booked and are typically referred to as minicabs. They’re also called private hire vehicles (PHVs). They don’t operate in the same way as Hackney carriages and cannot be hailed or use designated taxi ranks. 

Private hire cabs can drop off and pick up passengers outside their licensing authority, but only if the booking was made within the licensed area.   

The rules around how private hire taxis operate are strict. Minicab drivers caught plying for hire (accepting fares without pre-booking) can be fined up to £2,500. Drivers can also be asked to pay additional court costs and in extreme cases, have their driving licences taken away.  

Can private hire vehicles use a taxi rank? 

No, private hire taxis cannot use taxi ranks. These can only be used by public hire (Hackney carriage) taxis. Drivers caught touting for customers at taxi ranks are considered to be plying for hire (and will face the same consequences).  

What is private hire taxi insurance? 

Policies for private hire vehicles are similar to those for public hire taxis. 

Bear in mind that policies will only cover you to use your vehicle as a private hire taxi. If you’re involved in an accident and your passenger didn’t pre-book, your insurance won’t be valid, and it can be voided by your insurer. In the eyes of the law, it would be as if you had no insurance at all, which could lead to penalty points, fines and prosecution.  

How much does taxi insurance cost? 

Like most policies, the cost of taxi insurance is influenced by a number of factors, for example:  

  • the type of vehicle you drive; 

  • where you’re located; 

  • whether you’re licensed as a Hackney carriage or as a private hire vehicle; 

  • annual mileage; 

  • number of passengers you’ll be able to transport; 

  • your age and driving history.  

To take out a taxi insurance policy, your insurer will normally ask to see: 

  • Taxi licence 

  • Vehicle licence  

  • V5 logbooks 

  • Signed proposal form 

  • DVLA check code 

  • Driving licence 

  • Proof of no claims (if applicable) 

Taxi insurance that fits your needs

Taxi cover should reflect the way you use your vehicle. At Alan Boswell Group, we tailor policies to suit you, including using your car for your own purposes.  

To find out more, you can take a look at our guide to taxi insurance or speak to a member of our team.

Speak to us:  01603 482882

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