Taxi breakdown cover

Most regular breakdown insurance policies don’t cover cars for business use, which includes carrying paying passengers. We looked at what kind of breakdown insurance you need for your taxi service, or to cover your car if it’s used to drive customers.

What is taxi breakdown cover?

Taxi breakdown cover is a specialist breakdown cover designed for taxis or private hire vehicles that are used to carry paying passengers.

You can get cover for one vehicle or a whole fleet, and insurance for minivans and other types of vehicles can also be obtained (weight and height restrictions apply).

What types of breakdown cover are there for taxis?

Cover for taxis is similar to that offered to private use vehicles. The policy specifications will vary by insurer, but breakdown cover usually includes:

• Roadside assistance. This is the most basic form of breakdown cover and should be included within all breakdown policies. Roadside assistance ensures that if your taxi or private hire car breaks down further than a quarter of a mile from your place of work, someone will be sent to assist you on the road. If your vehicle cannot be fixed on the roadside, it will typically be towed to a nearby garage.
• National recovery (relay). Also known as vehicle recovery, National recovery means that, if your car can’t be fixed on the roadside, it can be towed to any location of your choice within the UK. With some insurers, this will also include getting you and your passengers to your destination of choice within the UK, whereas some insurers will require you to add “onward travel” to your policy for this to apply.
• At work. This is the business equivalent of home start insurance. At work cover provides you with cover should your vehicle break down at your place of work or very near to it (usually within a quarter of a mile to a mile radius of your work).
• Accident care. This is usually an add-on to a national recovery policy, and means that you’ll get assistance with vehicle recovery, repairs and processing insurance claims after accidents or vandalism.

How much does breakdown cover for taxis cost?

Cost will vary by insurer, plus the type of policy you choose and the type of taxi business you run.

Things like how many vehicles you operate, the hours and locations you drive in and where the vehicles are kept at night will all impact your premium. The age, experience and driving history of the driver or drivers will also have an effect.

To give you an indication of costs, breakdown cover for taxis from our partner RAC starts from £165 per vehicle.

Frequently asked questions

• Why do I need taxi breakdown cover?

  Breaking down can happen to any car and is never pleasant. However, when you’re carrying paying customers, it can also cost you precious income and negatively affect your business. What’s more, as taxis and private hire vehicles spend more time on the road than most other vehicles, they are at a greater risk of a breakdown.

  Most regular breakdown policies don’t cover taxis and private hire vehicles, so, if you want to protect your business, you’ll need to take out specialist cover.

• What if my taxi is part of a fleet?

  You can usually get cover for just one taxi, or for a whole fleet, depending on your business needs.

• What about if my taxi is a minibus?

  Most providers also offer taxi breakdown cover for minibuses, with the same level of cover that is offered to regular cars.

• Are Uber drivers covered?

  Many providers cover Uber and other similar services, but make sure you check the policy details to find out for sure before you purchase the policy.

• What will happen to my passengers if I break down?

  This depends on the cover you have. If you have basic breakdown cover, your passengers (along with you and your vehicle) will be taken to any garage or other destination within a certain distance of your breakdown (usually around 10 miles). If you have a more comprehensive policy (that includes “recovery” or “onward travel” cover), you and your passengers will be taken to any destination of your choice within the UK.

• Can breakdown cover for my taxi be classed as a business expense?

  If you’re a self-employed taxi driver, you should be able to claim various expenses related to your vehicle. That does include insurance and breakdown cover, but it’s best to check with the HMRC if you’re not sure whether it applies to you.

• Can I add another taxi to my policy?

  Yes, most policies will let you add and remove cars from your policy.

• What if I sell one of the vehicles during the breakdown cover period?

  You should be able to add another vehicle to the policy in its place (before it’s due for renewal). If a replacement vehicle isn’t allocated, you are unlikely to get a refund or credit, though this will be up to your insurer.

• Will my vehicle be covered in Europe?

  This will depend on your insurer, but many won’t include cover in Europe. You should be able to take out a separate policy for this called European Breakdown Cover (or possibly Fleet Europe).

• How much VAT do I need to pay on taxi breakdown cover?

  This might depend on the insurer, but many don’t charge VAT on specialist breakdown cover.

• I've broken down – can I get cover immediately?

  You might be able to get instant breakdown cover with some providers, but this will likely cost you extra.