How are insurance products evolving to meet the needs of app-based taxi and private hire drivers?

At Acorn Insurance, we’ve seen first-hand how the landscape of the taxi and private hire vehicle (PHV) sector has transformed over the past decade. The emergence of ride-hailing apps and the wider gig economy has fundamentally reshaped not just how drivers work, but how we as insurers must think about risk, flexibility, and service delivery.

Traditionally, taxi insurance was relatively straightforward. Policies were often annual, offered limited flexibility, and catered primarily to full-time, licensed drivers working for local operators. That model has shifted significantly with the entry of app-based platforms like Uber, Bolt, and FREENOW.

Nowadays, a significant proportion of drivers are self-employed and their working patterns are more diverse. These drivers often work part time, dip in and out of the trade, combine it with other gig work, or operate on demand based on their personal schedules.

To meet these evolving needs, insurance products have had to become far more adaptable. As a business, we’ve embraced this changing market by rethinking how policies are structured and delivered. One of the most significant developments has been the move toward short-term insurance options. Many app-based drivers no longer want or need an annual policy. Instead, they may seek flexible cover for a week, or a month, depending on their working patterns. We’ve introduced short-term taxi insurance products that provide comprehensive cover without long-term commitment – adapting to the market and our customers’ needs.

Beyond flexibility in duration, the industry has also had to respond with more integrated digital solutions. Drivers today expect to be able to quote, purchase, and manage their policies entirely online or via mobile. We’ve invested heavily in digitising our customer journey – streamlining documentation, automating renewals, and offering our new app-based policy management. This aligns with the expectations of a digitally savvy driver population, many of whom entered the industry through app-based platforms.

The nature of risk assessment has also evolved. Traditionally, risk was evaluated largely based on a driver’s experience, location, and claims history. But with the rise of gig platforms, insurers now have access to telematics data and platform analytics, which provide deeper insights into driver behaviour. For instance, drivers with safer driving patterns or higher customer ratings might benefit from more competitive premiums. It’s a win-win: safer roads and fairer pricing.

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Licencing also significantly influences the sector. Different licensing authorities have varying standards, and app-based drivers can often work across multiple jurisdictions. That’s why our products are designed with built-in flexibility to accommodate a wide range of licensing requirements, especially in high-density urban areas like London, Liverpool, Birmingham, and Manchester.

Some licence authorities have specifically focused on the industry for a shift in greener transportation, meaning our customers are more likely to be driving electric or hybrid vehicles in certain areas. The vehicle itself is an area of risk assessment, looking at trends in reliability and repair networks and ensuring we can quickly get the driver back on the road and earning, in the event of an accident.

Another significant development has been in the area of combined cover. Many modern drivers now look for insurance products that cover taxi work, fast food delivery & courier, as well as personal use, all under one seamless policy. We offer tailored hybrid products that eliminate the need for multiple policies, reducing both cost and complexity.

Finally, it’s important to address support and claims service. The gig economy often leaves drivers isolated when things go wrong. An insurance company that provided dedicated, taxi-specific claims support, with teams that understand the unique circumstances and pressures our drivers face is vitally important. Whether it’s assistance with a non-fault accident or navigating a repair process, we’re focused on keeping drivers on the road and earning.

The rise of gig platforms and app-based mobility has pushed the insurance sector to become more agile, digital, and customer-focused. At Acorn Insurance, we see this as an opportunity, not a challenge.

We’re leading the way in developing products that reflect the real-world working patterns of today’s taxi and PHV drivers – introducing products that are as dynamic and flexible as the industry they serve.

Exclusive article for TaxiPoint by Acorn Insurance