Taxi

Black cab insurance: what a hackney carriage policy needs to cover

Black cab insurance is public hire cover for a hackney carriage. What the law requires, plus what to check: cab repairs, a replacement cab, lost earnings.

Black cab insurance is a public hire motor policy that covers a licensed hackney carriage to carry fare-paying passengers, including people who hail you in the street or climb in at a rank. The law sets the minimum it must cover, but the parts that keep a cab driver earning after a claim (repairs to a purpose-built cab, a replacement licensed cab and lost earnings) are not automatic, so they are worth checking line by line.

This guide goes through what a hackney carriage policy has to include, what your licensing authority looks for, and the gaps that tend to show up only when you make a claim.

What is black cab insurance, and is it the same as hackney carriage insurance?

Yes. Black cab insurance, hackney insurance, hackney carriage insurance and public hire insurance are different names for the same thing. "Hackney carriage" is the legal name for a taxi, and the purpose-built black cab is the best-known example. What matters for insurance is the licence on the vehicle, not its shape or colour.

Public hire cover is a type of hire and reward insurance, meaning it covers carrying passengers for payment. It is different from private hire insurance, which is written for minicabs that can only take pre-booked jobs. If you are unsure which applies to you, our guide to hackney carriage insurance vs private hire sets out the difference.

Outside London your vehicle licence comes from your local council, and in London it comes from Transport for London, according to GOV.UK. The vehicle must be licensed by the same authority that issued your driver licence.

What must a hackney carriage policy cover by law?

Every motor policy in Great Britain has to meet the compulsory minimum in section 145 of the Road Traffic Act 1988. It must insure you against liability for "the death of or bodily injury to any person or damage to property" caused by, or arising out of, using the vehicle on a road or other public place. "Any person" includes your passengers, which matters in a job where strangers ride with you all day.

On top of the law, your licensing authority checks that the cover suits the work:

• Sheffield City Council, as one example, says a hackney carriage must have "the correct insurance to carry passengers for hire and reward", and the certificate must show who is insured to drive and the purposes the vehicle can be used for.
• In London, TfL's conditions of fitness say a current certificate of insurance must be carried in a holder fixed in the cab. The registration, owner's name and expiry date must be in at least 12 point type, and the certificate must state that the policy complies with the London Cab Order 1934.

If you drive without valid cover, GOV.UK says police can give you a £300 fixed penalty and 6 penalty points. In court you could get an unlimited fine and a driving ban, and the vehicle can be seized. You can check your own vehicle is on the Motor Insurance Database free at askMID.

Does black cab insurance cover rank and street-hail work?

It should, because that is what makes it public hire cover. The Department for Transport's best practice guidance describes taxis as vehicles that "can be hired immediately, directly with the driver, at ranks or on the street". Your policy's description of use is where that shows up. Look for wording that covers carrying passengers for hire and reward under a public hire or hackney carriage licence.

Some cab drivers also take booked jobs, from account customers, radio circuits or apps. The broker will ask how you take work, so the policy can describe all of it rather than only part.

What does a wheelchair-accessible black cab need covering?

In London accessibility is not optional. TfL's conditions of fitness say "every taxi must be equipped to approved standards in order that wheelchair passengers may be carried". That includes approved anchorages for wheelchair tie-downs and a separate passenger restraint, and on all new vehicles presented for licensing, a ramp at least 70cm wide available at the nearside door. Outside London, councils set their own vehicle rules, so not every hackney carriage is wheelchair accessible.

The Equality Act 2010, section 165 puts duties on drivers of taxis designated as wheelchair accessible. They include carrying a passenger while in the wheelchair, giving "such mobility assistance as is reasonably required" and not charging extra for doing so.

Because the ramp, restraints and anchorages are part of the vehicle you work in, these are fair questions to put to a broker:

• Is the accessibility equipment covered as part of the vehicle if it is damaged or stolen?
• How does the policy deal with an injury while a passenger is getting in or out, including by ramp?
• Does the policy need to know about any adaptations beyond the standard specification?

Who pays for repairs to a purpose-built cab?

Purpose-built cabs are specialist vehicles, and London adds its own rules on top. TfL requires new taxi models since 1 January 2018 to be zero emission capable: no more than 50g CO2/km, a zero-emission range of at least 30 miles, and a petrol engine if there is one. The conditions of fitness also say no modification may be made without approval, and that safety-critical parts such as brake, steering and suspension parts should be approved in advance by TfL's licensing office.

That shapes what you want from the damage side of the policy. Points to check:

The excess figures are made-up round numbers for illustration only. If valuation is a worry, our guide to agreed value vs market value after a write-off explains how the two work.

Are a replacement cab and loss of earnings included?

Not automatically, and this is the gap that matters most when a cab is off the road. A cab off the road means no income, and a standard courtesy car is not licensed as a taxi, so you cannot legally ply for hire in it. TfL's rules are clear that no vehicle can be licensed as a taxi in London unless it meets the conditions of fitness.

A Financial Ombudsman Service decision shows how this plays out. A driver whose car was used as a taxi was without it from mid-December 2022 to 18 February 2023 while repairs waited on parts. He asked for his lost earnings. His policy said it would not pay for "loss of use, earnings, or any other indirect loss" or the "cost of alternative transport or courtesy/hire vehicle". The ombudsman found the policy was clear and the insurer did not have to pay either, and held that the parts delay was outside the insurer's control. The only payment was £100 the insurer had already agreed for delays in December 2022.

So read the policy for:

1. Replacement vehicle. Is it a licensed taxi you can work in, or just a courtesy car? How long is it provided for, and does it apply only when the accident was not your fault?
2. Loss of earnings. Is it covered at all? If so, is there a daily amount, a maximum number of days and a waiting period?
3. Evidence. What proof of earnings would the insurer ask for, and do your records of takings show it?
4. Exclusions. Look for the words "indirect loss", "loss of use" and "hire vehicle" in the exclusions section.

What affects the price of black cab insurance?

Insurers do not publish exactly how they price, and no one can tell you in advance what you will pay. What they ask about gives a good idea of what counts:

• your licensing authority and where you work
• the cab: make, model, age, value and any adaptations
• your driving record, claims history and any convictions
• how you work, including ranks, street hails, bookings and night work
• the excess you choose and any extras added, such as replacement vehicle or loss of earnings cover

Whatever the price, the details you give need to be accurate. Giving inaccurate details can leave you without valid cover when it counts.

When you are ready to compare policies against this checklist, you can get taxi insurance quotes through Kompare. You fill in a short form, and a specialist FCA-authorised broker from the panel contacts you with quotes and can talk through what each policy covers.