Taxi Insurance for Young Drivers and New Badge Holders

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If you’re a new driver then finding insurance can be tricky. Some insurers will see you as high risk and you could end up paying more than you have to, or purchasing a policy which isn’t well suited to your needs. However there are some things you can do to get cheaper quotes and several insurers which specialise in taxi insurance for young drivers and new badge holders.

Why is taxi insurance for young drivers more expensive?

Taxi insurance is calculated based on the risk you present to the insurer. Normally, the more risk you present, the higher your quote. Therefore if you’re a new driver with limited driving history, you may end up paying more than someone with more experience. Younger drivers are also statistically more likely to be involved in an accident.

What is the minimum age for taxi insurance?

You must be 21 years old to drive a taxi in much of the UK or drive for Uber. However you can apply for a licence with TFL once you are 18. In other parts of the UK you are required to have a minimum of three years’ driving experience. So it is possible to get taxi insurance for 19 year olds in the UK. However, be sure to do your research, if in doubt then check with your local licencing authority. When you’re looking for taxi insurance be sure to buy from a trusted FCA approved provider to ensure your policy is valid and is not a scam. 

How to get cheaper taxi insurance quotes

The easiest way to get cheaper quotes is to shop around. You can compare taxi insurance online and get quotes instantly. There are a few other things you could try to reduce the amount you pay:

Your car

The type of car you drive can affect the amount you pay for insurance. Smaller cars with smaller engines are generally cheaper to insure. Obviously as a taxi driver, you will likely need a medium – large vehicle, but you can try sticking to a smaller engine size, and not going for the most expensive car you can afford.


Adding extra security features may help to reduce premiums. Most modern vehicles come with alarms and immobilisers as standard but you can add tracking devices, dashcams or steering locks. It might also be worth investing in internal cameras or CCTV.


Where possible, try to keep your car parked in a secure place, preferably in a locked garage. This can reduce your quotes, whilst also protecting your car from thieves and damage.


When you get a quote, be sure to calculate your mileage accurately. Overestimating the amount of miles you cover in a year could lead to more expensive premiums, whilst under-estimating could invalidate your policy.

Additional drivers

Adding more experienced drivers to your policy could reduce the amount you have to pay. Some insurers will require the additional driver to be a taxi driver too. If you’re not sure then call the insurer after you get a quote.

What type of taxi insurance do I need?

If you drive a vehicle for hire & reward then you’ll need taxi insurance. There are few different types:

Public Hire insurance

This is for licenced taxis (aka black cabs) which do not have to be pre-booked and can pick up fares from the street or taxi ranks. These vehicles will also display a “taxi” sign on the roof.

Private Hire insurance

These taxis (or minicabs) are not allowed to pick up fares without being pre-booked. The majority of taxi insurance policies are actually sold for private hire vehicles.

Uber / Ola and Taxi app insurance

Most taxi insurers will also offer policies for drivers who use taxi apps like Uber. They’re either the same as, or very similar to, a standard private hire policy.

Getting taxi insurance for young drivers and new badge holders can be time consuming and frustrating. But you can save time and money by comparing quotes online instantly. Insure My Stuff 4 Less compares prices from trusted taxi insurance brokers so you don’t have to go direct. Get a quote online now and see how much you could save!