Do You Need Taxi Insurance for Uber?

Do You Need Taxi Insurance for Uber?

Yes, Uber drivers are required to hold valid taxi insurance to drive for Uber. In fact, Uber drivers are required to upload proof of their insurance before they’re able to drive for Uber, so it’ll need to be sorted out before completing the sign-up process.

Uber doesn’t provide this insurance for its drivers, so it’s up to each driver to source it themselves. Finding good Uber taxi insurance isn’t too difficult, and Uber even has several insurance partners that assist with uploading insurance documentation directly to an Uber account.

There have two choices — either take out a monthly/annual taxi insurance policy (that should include coverage for regular social, domestic & pleasure vehicle driving) or use a top-up/pay-as-you-go option like the one offered by Zego.

Monthly/annual policies are typically better suited to those using Uber (or other taxi work) as their primary source of income. A driver clocking more than 25-30 hours per week (it varies depending on the vehicle and risk profile) will probably get better value for money out of a pay monthly/annually policy than pay-as-you-go cover.

If driving is a short-term employment solution, also consider whether signing up for a long-term contract is worth the potential costs down the road. While some insurers do accept early terminations, it’s unlikely to be a full refund for all the time remaining on the policy. And cancellation fees would need to be paid. However, some taxi insurance companies offer to roll monthly contracts, so it is possible to avoid the burden of a long-term contract if that is important to a driver.

The alternative, pay-as-you-go taxi insurance, can be a cost-effective option for both part-time drivers and those who don’t see driving as something they’ll be doing long-term. It’s a way to avoid the financial risk of long-term contracts and only pays for the cover used, thus minimising the chances of ‘overpaying’ for coverage.

While pay-as-you-go insurance is an extremely convenient solution (and many drivers do feel reflects good value for money), there can be some issues if the social, domestic & pleasure (SD&P) vehicle insurance provider doesn’t allow a policyholder to take out additional vehicle coverage or use the vehicle for a taxi, courier or equivalent work.

The best thing to do is check with the SD&P provider before taking out top-up coverage to make sure they accept top-up cover and using the vehicle for taxi work. If possible, get it in writing from them. They could be within their rights to disallow it, and failure to inform them might result in the insurance being invalidated.

Are uber taxis insured?

All Uber taxis are required by law to be insured properly. This means all drivers must hold a valid form of commercial/hire and reward insurance before signing up with Uber and must maintain this while they continue to drive for the ride-hailing app.

Uber themselves do not provide any vehicle insurances for its drivers in the UK but do provide some basic coverages for injury and illness. This may change in the future, given that the Supreme Court found Uber drivers to not classify as self-employed, so keep an eye on this space.

Some Uber drivers may additionally take out insurances like a public liability to help protect themselves and their customers from any incidents that may occur without there being a road traffic accident, such as property damage inside the vehicle or injuries outside of it, such as while loading luggage or stepping into the Uber.

This isn’t compulsory, by any means, so it’s possible that not every driver will hold it, but it is an option all of them should have considered.

What insurance do Uber drivers need?

Uber drivers are required to hold their own commercial/hire and reward vehicle insurance policy. This provides them with the necessary protections to use their vehicle as a taxi and helps to protect against the unique set of risks that taxi drivers face while driving professionally.

From long hours behind the road (often late at night) through to rushing to meet tight drop-off deadlines, Uber drivers require more robust vehicle insurance to keep them safe on the road. While it is considerably more expensive than regular vehicle insurance, it’s a legal requirement for any taxi driver in the UK, so everyone should have one.

How much does uber insurance cost?

Uber insurance often costs £200-£400 for a monthly policy (depending on driver age, vehicle, etc.) or £1.50-£3 per hour for a pay-as-you-go policy, but prices will vary from driver to driver. Do keep in mind that insurers will evaluate risk levels differently, so shop around to make sure a company has provided a good price. Research by NimbleFins shows the variations between different insurers can easily be upwards of £100 per month, so it’s well worth checking out a few providers before committing to a policy.

Zego taxi insurance

Zego’s taxi insurance can be an excellent option for anyone looking for cover while driving professionally; however, some question marks surround the legality of Zego’s popular “pay-as-you-go” taxi insurance that are yet to be answered.

Most social, domestic & pleasure vehicle insurers do not allow their drivers to either hold top-up cover or use their vehicle for taxi (or other hire and reward) work. This means a driver runs the risk of invalidating their SD&P cover by using Zego’s cover.

A driver should always confirm with their SD&P provider to be 100% certain the insurer allows drivers to take out additional cover with Zego.

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