PCO Insurance (UK) – Compare Private Hire Cover

Who this page is for

This information may be useful if you drive for a private hire operator, minicab company, or ride-hailing platform and need insurance that covers carrying paying passengers. It's relevant if you're looking to understand what hire-and-reward insurance involves and what insurers typically ask about when you apply.

Private hire drivers, people considering starting minicab work, or anyone who needs to check whether their current insurance covers this type of use may find this page helpful when comparing options.

What "PCO" means on this page

"PCO" can mean different things in different contexts. On this page, we're using it to refer to private hire or minicab insurance, often linked with local authority licensing requirements. This is the type of cover you'd need if you carry passengers for payment, as opposed to just using your car for personal journeys or commuting.

In the UK, private hire is regulated by local authorities. The specific rules, licensing processes, and terminology can vary depending on where you operate. Some areas use different terms or have different requirements, so it's worth checking what applies in your region.

How this insurance differs from standard car insurance

Standard car insurance policies typically cover social, domestic, and pleasure use, plus commuting to a single place of work. Some policies also include business use for work-related travel, such as visiting clients or travelling between work sites. However, these policies generally exclude carrying paying passengers.

PCO or hire-and-reward insurance is designed specifically to cover private hire work. This means using your vehicle to transport passengers who pay a fare, whether you're working for a traditional minicab firm or through a ride-hailing app. Without this type of cover, using your car for private hire could invalidate your insurance.

This is different from commercial car insurance, which can refer to business use for work travel but doesn't necessarily cover hire-and-reward. It's also distinct from public hire or taxi insurance, which covers vehicles that can be hailed on the street or pick up from taxi ranks without pre-booking.

Private hire vehicles typically need to be pre-booked through an operator and can't pick up passengers who flag them down. If you're licensed for public hire work (where passengers can hail you on the street or pick up from ranks), you'll need taxi insurance instead. The insurance requirements reflect this distinction, though the exact definitions and rules vary by local authority.

What cover may include

PCO insurance policies typically offer the same levels of cover as standard car insurance: third party only, third party fire and theft, or comprehensive. The level of protection you choose depends on your needs and what the insurer offers.

Comprehensive cover usually includes damage to your vehicle, theft, fire, and third-party liability. Many policies also offer optional extras such as breakdown cover, legal expenses, or hire car provision if your vehicle is off the road. What's included and any exclusions will be set out in the policy terms.

Some insurers offer policies that include public liability cover for passengers, though this varies by provider. It's worth checking what protections are included and whether there are any restrictions on when or where you can operate.

What affects eligibility and cost

Insurers assess PCO insurance applications in similar ways to standard policies, but with additional considerations around your private hire work. Your driving history, age, experience, and any claims or convictions all matter. The vehicle you use, where it's kept overnight, and its security features also influence pricing.

For private hire drivers, mileage is particularly important. If you're driving long hours or covering high annual mileage, this can affect the premium. Where you operate matters too; working in busy city centres or areas with higher accident rates may influence cost.

The type of vehicle you use can make a difference as well. Some private hire drivers opt for hybrid or electric vehicles to reduce running costs, though repair costs and parts availability can vary. Insurers may have different views on covering certain vehicle types for hire-and-reward use.

Payment options may include annual premiums or monthly payment plans, depending on what the insurer offers. Availability of PCO insurance varies; not all providers offer this type of cover, and those that do may have specific eligibility criteria.

Practical considerations for private hire drivers

One of the key differences between standard car insurance and PCO cover is the hire-and-reward use declaration. Standard policies typically exclude carrying paying passengers, so if you start doing private hire work without notifying your insurer and switching to appropriate cover, you could be driving without valid insurance. This matters not just for claims, but also for legal compliance. Insurers offering PCO policies understand that you'll be using the vehicle commercially and price accordingly.

Understanding the distinction between private hire and public hire can be important when arranging insurance. Private hire vehicles are pre-booked through an operator and can't pick up passengers who hail them on the street. Public hire or taxi insurance covers vehicles licensed to be hailed or pick up from ranks. The two are regulated differently in most areas, and insurers treat them as separate risk categories. If you're doing private hire work, you need cover that specifically allows for that, not just general commercial use.

Licensing evidence is something many insurers ask about when you apply for PCO cover. Most providers want to know that you're properly licensed by your local authority to operate as a private hire driver. This might involve providing a copy of your private hire driver's licence or operator details. Requirements differ by insurer and by area. Some local authorities have stricter licensing processes than others, and insurers may take this into account when assessing applications. It's worth having your licensing documents ready when you get quotes.

Mileage and usage patterns affect pricing more significantly for PCO insurance than for standard policies. If you're driving full-time for a ride-hailing platform or minicab company, you could be covering 30,000 miles a year or more. Higher mileage increases wear and tear and the statistical likelihood of incidents, which insurers factor into premiums. Some providers ask about your typical working hours, whether you drive weekends or nights, and which areas you operate in. Being accurate about your usage when you apply helps avoid issues with claims later.

Vehicle type considerations for private hire work go beyond just insurance groups. Many private hire drivers choose vehicles that balance fuel economy, passenger comfort, and repair costs. Hybrid and electric vehicles are becoming more common in private hire fleets because of lower running costs, though battery replacement expenses and specialist repair networks can be considerations. Insurers may have different appetite for covering certain vehicle types for hire-and-reward use, and replacement vehicle provisions in the event of a claim can matter more when your car is your livelihood. It's worth checking what support is available if your vehicle is off the road.

Frequently asked questions