Which questions about TfL insurance do I answer here, and why they matter?
If you're a new PCO driver or an experienced chauffeur, insurance isn’t just a box to tick. It's the thing that keeps your licence intact, your customers protected, and your income uninterrupted. Below are the exact questions I’ll answer — short, practical, and focused on what you need to know right now:
- What exactly does TfL require for private hire insurance? Will my personal car insurance cover private hire work? How do I actually get compliant insurance that won't leave me exposed? Should I use a specialist broker, buy fleet cover, or handle policies myself? What changes are coming that might affect premiums or cover types?
These matter because the wrong policy ruins a day at best and your licence at worst. Ignore TfL’s requirements and you risk fines, vehicle seizure, licence suspension, and legal claims from passengers. That’s not theoretical — real drivers lose their livelihoods over this every year.
What exactly does TfL require for PCO insurance?
TfL expects every private hire driver and vehicle operating in London to be insured for carrying passengers for hire or reward. The practical meaning is simple: your motor insurance must specifically cover "private hire" or "hire and reward" use. Generic “social, domestic and pleasure” cover is not acceptable when you are paid to carry people.
Key points TfL cares about:
- Your insurance must be valid at all times when the vehicle is used for private hire - that includes when you’re logged on to an app and waiting for a job, unless your policy explicitly covers that state. The policy should match the vehicle and the use. If the vehicle is listed as a private hire vehicle with TfL and you drive it for fares, the insurer must know. You must keep proof of insurance available. TfL can ask to see documentation during checks. False declarations to insurers are a route to void cover and a speedy way to lose your licence.
Think of TfL’s insurance requirement like the vehicle’s seatbelt: it’s mandatory, obvious, and meant to prevent disaster. You wouldn’t drive without a belt and you shouldn’t drive for fares without the right policy.
Will my personal car insurance cover private hire work?
Short answer: almost never. That’s the biggest misconception I see.
Personal "social, domestic and pleasure" (SDP) insurance is designed for private use — trips to the shops, visiting friends, commuting when declared — not for carrying paying passengers. If you use an SDP policy to pick up a fare, and you have an accident, the insurer is likely to refuse the claim and treat the policy as void. That leaves you personally liable for damage, injuries, and any third-party claims.
Three real scenarios:
- New driver Jamie accepts an app job while on a personal policy. He hits another car. The insurer denies the claim because the driver was carrying fare-paying passengers. The other motorist sues Jamie personally. Jamie is out of pocket and faces potential licence suspension. Experienced driver Sara uses a declared “business use” private insurer but forgets to mention she also carries parcels for a food platform. A passenger’s bag is damaged in transit. The insurer argues the policy doesn’t cover goods-in-transit and disputes liability, leaving Sara to sort it out. Chris has a specialist PCO policy that only covers “while on a job”. He’s logged in, waiting for a booking, gets into an accident. His policy excludes “app-on, no-passenger” periods, so the cost falls to him and his car is seized pending investigation.
The pattern: not telling the insurer the truth, or assuming a personal policy covers commercial use, is where problems begin. Always read the policy schedule and make sure “private hire” or “hire and reward” appears explicitly.
How do I actually get compliant insurance as a PCO driver?
Getting the right policy is a step-by-step process. Treat it like preparing a car for a long job - skip steps and you’ll break down.
1. Know the type of cover you need
- Private hire / hire and reward cover for carrying paying passengers. Public liability or passenger liability may be useful for third-party injury claims, depending on your vehicle and operations. If you carry goods (courier work, deliveries), look for goods-in-transit cover or an add-on. Consider legal expenses and breakdown cover tailored for PCO use.
2. Gather your documents
- Driving licence and DVLA code for licence check. Your PCO driver badge and vehicle details (VRM and V5). Any convictions, endorsements, accident history - be honest.
3. Get quotes from specialist insurers and brokers
Specialist PCO insurers understand periods when you’re logged on but unassigned, or when you’re carrying fare-paying passengers. Prices vary a lot. As a rough guide, expect annual premiums from roughly £1,000 for older drivers with low-value cars and telematics, up to £5,000+ for new drivers or high-value executive cars. Telematics policies can reduce premiums if you’re careful behind the wheel.
4. Read the policy wording - no skim-reading
Key phrases to spot:
- "Private hire" or "hire and reward" explicitly named. What is covered when “logged on” vs “on a job”? Who is insured - named driver, any driver, or only the policyholder? Excess levels and when they apply. Policy exclusions: certain mileage, types of passengers, airport work, or parcel deliveries.
5. Declare everything and keep evidence
Tell the insurer you have a PCO licence, give them your badge number if asked, and declare any business use details. Keep emails, policy schedules, and payment receipts in a folder on your phone. If TfL inspects, you want instant proof.
6. Check cancellation and claims handling
How fast does the insurer respond? What’s their claims reputation? You want a company that pays legitimate claims quickly because a delayed claim can cost you days or weeks off the road.
7. Update the policy when things change
Sell the car, change vehicles, move house, add or remove a named driver - tell the insurer. Small changes left unreported can invalidate cover.
Should I use a specialist broker, buy fleet cover, or handle insurance myself?
This is where cost meets convenience. Each route has trade-offs.
Specialist broker
Pros:
- They compare multiple specialist underwriters, so you get targeted options. They know the tricky bits - app-on notices, airport endorsements, goods-in-transit. They can explain wording and escalate claims disputes.
Cons:
- May charge broker fees, though they usually save you more than they cost. Some brokers upsell add-ons you might not need.
Direct with an insurer
Pros:
- Potentially cheaper if you find the right specialist and know what you need. Less middle-man communication if you like dealing with one company.
Cons:
- Harder to compare market quickly. Risk of missing subtle exclusions if you’re not used to policy language.
Fleet cover
Pros:
- Multi-car discounts for operators or drivers with several vehicles. Centralised claims handling and consistent cover across vehicles.
Cons:
- Often designed for businesses, so you need proper records and management to qualify. If one vehicle has repeated claims, whole fleet premiums can rise.
Example: Small operator Mia runs three private hire cars. She used to buy three separate retail policies and saw chaotic renewal dates. Switching to a fleet policy saved 12% and gave a single renewal date. But when one car had an expensive claim, the fleet premium jumped at renewal - a downside to pooled risk.
If you’re a solo driver, a specialist broker usually gives the best balance of price and protection. If you run or plan to run several vehicles, talk to brokers about fleet options and whether an operator's licence structure makes sense.
What changes are coming that could affect PCO insurance, and how should I prepare?
Insurance moves fast. Here are trends that will change premiums, policy types, or how claims are assessed in the near future:
1. Telematics and data-driven pricing
Insurers are using telematics more often, especially for new drivers. Drive well and you save money. Drive poorly and the black box will show it in your renewal price. If you’ve been relying on high quotes, a telematics policy can be a lifeline — but it also removes some privacy and gives insurers real-time data to justify premium changes.
2. Electric vehicles (EVs)
As more PCOs switch to EVs, insurers are adjusting. Repair costs for EVs can be higher and specialist parts and batteries change claim values. Expect mixed effects: some insurers offer discounts for lower running costs and emissions, others price in higher https://www.mayfair-london.co.uk/top-london-private-hire-insurance/ parts costs.
3. Stricter enforcement and digital checks
TfL and platforms are getting better at automated checks. Expect faster licence suspensions for insurance lapses and more app-platform cooperation with investigators. That means one missed renewal could lead to immediate deactivation from app platforms.
4. Platform liability shifts
Regulators are scrutinizing whether apps are operators or mere intermediaries. Changes in that legal picture could shift responsibility for insurance claims. If platforms are ruled responsible for certain risks, insurers may change product offerings or prices.
5. Climate and claim frequency
Severe weather events increase claims and push premiums up. In areas prone to flooding or storms, expect higher renewal prices and tougher exclusions for weather-related damage.
How to prepare
- Start a renewal fund so a sudden premium rise doesn’t force you off the road. Consider telematics to lock in lower prices if you are a careful driver. Keep a spotless record: delays in declaring minor incidents grow into big costs at renewal. Use a broker who watches market changes and notifies you of alternatives before renewal.
Final reality check
Insurance for PCO drivers is not negotiable paperwork. It’s the backbone of your business. Cut corners to save a few hundred pounds now and you risk losing thousands later in claims, legal costs, or losing your TfL licence entirely. Treat insurance as a running cost you must manage, not an optional extra you can ignore.
Quick checklist before you drive for fares
- Policy explicitly states private hire / hire and reward cover. You’ve declared PCO use and any app-based work to the insurer. You understand what “logged on” means in your policy and whether you’re covered while waiting for fares. You have digital copies of the policy schedule and proof of cover on your phone. You know your insurer’s claims phone number and process.
If any of these items are missing, stop and sort it. Your time on the road matters. So does being insured for it.