What is the difference between public and private hire vehicles?

A common question asked by drivers when they are looking to insure their cars: what is private vs public hire?  There are key differences between the two and these differences will define what type of insurance you will need to arrange.  It depends on what type of business you are in and whether you swear by a system of pre-booked pick-ups, or spontaneous scoops.

Private hire

Private hire insurance will cover people someone who works for a company such as Uber and picks people up following a pre-arranged booking.  This means that they are not allowed to pick people up off the street as it needs to be discussed beforehand.  Uber drivers will need this insurance as the nature of their work means they operate on a pre-booking basis, essentially the meaning of a private hire vehicle.

Public hire

Public hire taxi insurance is made for the cars that you might flag down on the street, with no prior thought other than a need to get anywhere.  It gives the driver the ability to pick people from the streets with no prior agreement or booking system in place.

Although these two forms sound simple, it’s important that you arrange the right one.

On the whole, public hire insurance is the more expensive of the two policies.  This is because they are more likely to carry cash with them, making them prime targets for thieves.  If they are not kept in a locked garage, this will also increase the price of your insurance premium.

Drivers operating a public hire vehicle are also statistically more likely to be involved in an accident due to the nature of their work.  This may be in built up areas and quick lane changes are needed to pick someone up at the last minute.  As private hire allows a pre-agreed time and place, the risk for this is greatly reduced.

However, much the same with any other insurance, the price of your insurance premium will depend on your driving experience, claims history, NCB, along with many other factors.

At Quote the Market, you can compare both types of taxi insurance.  With providers from all over the country, we will do our best to get the lowest prices possible for you!  Complete a free quote online today for prices in a matter of minutes!