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
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.
You can usually get cover for just one taxi, or for a whole fleet, depending on your business needs.
Most providers also offer taxi breakdown cover for minibuses, with the same level of cover that is offered to regular cars.
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.
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.
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.
Yes, most policies will let you add and remove cars from your policy.
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.
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).
This might depend on the insurer, but many don’t charge VAT on specialist breakdown cover.
You might be able to get instant breakdown cover with some providers, but this will likely cost you extra.
The offers compared on this page are chosen from a range of products we can track; we don't cover every product on the market...yet. Unless we've indicated otherwise, products are shown in no particular order or ranking. The terms "best", "top", "cheap" (and variations), aren't product ratings, although we always explain what's great about a product when we highlight it; this is subject to our terms of use. When making a big financial decision, it's wise to consider getting independent financial advice, and always consider your own financial circumstances when comparing products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Ronny Lavie was a deputy editor at Finder, specialising in insurance content. She has almost a decade of experience writing about financial topics, including five months spent as the interim managing editor for the Fintech Times newspaper. Ronny has a Master of Arts in Creative Writing from London Middlesex University. See full bio
Road trip in Europe? We explain what breakdown cover you can get and whether it’s worth it.
Feedback
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
