FCA authorised · FRN 724952 0117 325 0027Quote & buy →
Insurance wiki
Private hire is the carriage of passengers for payment in a vehicle with a driver that has been booked in advance through a licensed operator. It differs from a taxi because a private hire vehicle cannot be hailed in the street or wait on a rank.
Part of: Taxi and private hire insurance
In short
Private hire means pre-booked journeys in a licensed vehicle, driven by a licensed driver and arranged by a licensed operator. In England and Wales outside London it is regulated by Part II of the Local Government (Miscellaneous Provisions) Act 1976; in London by the Private Hire Vehicles (London) Act 1998; in Scotland by the Civic Government (Scotland) Act 1982. A private hire vehicle seats fewer than nine passengers. It needs private hire motor insurance, which usually covers pre-booked work only.
The Private Hire Vehicles (London) Act 1998 defines a private hire vehicle as a vehicle constructed or adapted to seat fewer than nine passengers that is hired out with a driver, excluding licensed taxis and public service vehicles. It defines an operator as a person who "makes provision for the invitation or acceptance of, or who accepts, private hire bookings". Larger vehicles carrying nine or more passengers for hire or reward fall under PSV operator licensing instead.
Licensing authorities must have regard to the Department for Transport's statutory taxi and private hire vehicle standards, issued under section 177 of the Policing and Crime Act 2017.
A hackney carriage, licensed under the Town Police Clauses Act 1847, may ply for hire: it can be flagged down or taken from a rank. A private hire vehicle may only carry passengers who booked in advance, and section 48(1)(a)(ii) of the 1976 Act says it must not look like a hackney carriage. The full comparison is in our public hire vs private hire insurance guide.
A council must be satisfied that insurance complying with Part VI of the Road Traffic Act 1988 is in force before licensing a private hire vehicle (section 48(1)(b) of the 1976 Act); see compulsory motor insurance. Private hire policies usually cover pre-booked journeys only; the DfT standards warn that a private hire vehicle not booked in advance "will not be insured and may not be licensed". Ordinary motor insurance for social or business use does not usually extend to hire and reward work.
Operators often need further cover, such as public liability and employers' liability; see private hire operator insurance. Businesses with several cars may use taxi fleet insurance, and executive work is covered in chauffeur and executive car insurance. The overview is on our taxi insurance page.
Apex arranges private hire insurance for drivers, operators and fleets. A broker reads each enquiry and comes back with options, with no fee for a quote; cover is subject to the insurer's acceptance and the policy terms. To quote we need your business activities, turnover, location and claims history, plus your licensing authority, vehicle details and each driver's licence history.
Private hire means carrying passengers for payment in a vehicle with a driver that has been booked in advance through a licensed operator. The vehicle, the driver and the operator each need a licence. Unlike a hackney carriage, a private hire vehicle cannot be flagged down in the street or wait on a taxi rank.
Yes, minicab is the everyday name for a private hire vehicle. It must be pre-booked through a licensed operator, whether by phone, website or app. A minicab driver who picks up passengers who have not booked is outside the private hire licence and usually outside the insurance policy.
A private hire vehicle seats fewer than nine passengers, as defined in the Private Hire Vehicles (London) Act 1998. Vehicles carrying nine or more passengers for hire or reward are public service vehicles and need a PSV operator licence from a traffic commissioner instead.
Outside London in England and Wales, the local council licenses vehicles, drivers and operators under the 1976 Act. In London, Transport for London does so under the 1998 Act. In Scotland, local licensing authorities license private hire cars under the Civic Government (Scotland) Act 1982.
Tell us what your business does, your turnover and any claims. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.
Start a commercial enquiry Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
