Taxi drivers warned by insurance experts that certain passenger actions could invalidate insurance
- Perry Richardson
- Apr 26
- 4 min read
Updated: Apr 28
Taxi drivers are being warned that the actions of their passengers could leave them without valid insurance cover.
Car insurance experts at Quotezone.co.uk have reminded drivers that they are responsible for ensuring passengers are transported safely and lawfully. The warning comes as the number of taxis and private hire vehicles reaches an all-time high in the UK, fuelled by the growth of cab-hailing apps.
In England alone, there were 313,000 licensed taxi and private hire vehicles in 2024, marking an 8.2% rise from the previous year and a significant 70% increase from the 184,500 vehicles recorded in 2005.
Drivers have a legal duty of care towards passengers, meaning they must always ensure journeys are carried out safely and in line with the law. One area of concern is the transportation of children. While the law permits children to travel without a car seat in a taxi, they must sit in the rear and use a seatbelt if over three years old. Children under three can travel without a seatbelt, but only in the rear. Allowing children to sit unlawfully in the front seat could see an insurance policy invalidated if an accident occurs warned experts.
Taking animals presents another risk. Assistance dogs must be accepted, but other animals are at the driver’s discretion. If a driver agrees to transport an animal, it is their responsibility to ensure the animal is properly restrained to avoid insurance issues should an incident take place.
Passenger behaviour can also have serious consequences. Obstructing the driver’s view, creating loud distractions, or placing heavy loads in the vehicle can all impact safe driving. Any of these could lead to accidents, fines, penalty points and insurance claims being rejected.
Taxi drivers are being urged to stay alert to the risks that passengers can bring, ensuring their vehicles remain compliant and insurance stays intact.
Greg Wilson, CEO and taxi insurance expert at Quotezone, said: “With taxi and private-hire numbers at an all-time high, it’s never been more important for drivers to understand the risks associated with passenger behaviour.
“The rise of ride-hailing apps means more drivers are entering the industry, but some might not be fully aware of the legal responsibilities that come with carrying passengers.
“Something as simple as allowing a child in the front seat without a suitable car seat, or letting a passenger's pet travel unrestrained, could end up being extremely costly in the event of an accident.
“It’s key for taxi drivers, especially those new to the industry, to understand all the legal obligations, and be prepared to reinforce the rules.
“Having the insurance invalidated due to the actions of passengers could have serious and expensive consequences for the livelihood of the taxi driver.”
How the actions of taxi passengers could put the insurance at risk:
Unsuitably restrained pets
If your passenger is bringing their pet into your car and doesn’t suitably restrain it, then you could be invalidating your insurance. Rule 57 of the Highway Code states that dogs or other animals are suitably restrained so they cannot distract you or cause injury to you or themselves. If you don’t carry one yourself, make sure your passenger has a seat belt harness, pet carrier, dog cage or dog guard to restrain their pet. However, you are legally required to accept assistance dogs unless you have a valid medical exemption.
Child safety
Under UK law, children must be properly secured in an appropriate child car seat or booster seat until they are 12 years old or 135cm tall (whichever comes first). However, this differs slightly for taxis. If you don’t provide the correct child car seat, then children can still ride in your taxi as long as they are in a rear seat. If the child is over 3 they must wear a seatbelt, while children under 3 must travel without wearing one.
Overloading your vehicle
Taxis are not permitted to carry more passengers or weight than the vehicle is licensed for. If a passenger brings excess weight or insists on squeezing in extra people, then you as the driver would likely be liable in the event of an accident. Never exceed your licenced seating capacity, and don’t be afraid to refuse passengers with excess luggage if it looks too heavy or causes obstructed views. Motorists must ensure a vehicle is not overloaded, and penalties for doing so start at £100 and in the most serious cases could lead to a 2-year prison sentence if found guilty of dangerous driving under the Road Traffic Act 1988.
Allowing street hailing
This action applies to private hire vehicles, as passengers must have pre-booked through a licenced operator or app. If you’re a private hire driver it is illegal to pick up street hails and being caught doing so can result in fines, penalty points, loss of licence, and insurance invalidation. Only black cabs and similar hackney-style vehicles can be hailed from the street, as these are licenced by the local authority.
Illegal or dangerous behaviour by passengers
If your passengers are involved in any illegal activity that you are aware of as the driver and fail to take reasonable steps to stop, then insurers could refuse to pay out for any claims if you are in an accident, or even cancel your policy as they may see this as reckless or criminal behaviour.
Smoking and vaping
It is illegal to smoke or vape in any work vehicle that more than one person uses, such as a taxi. If you allow it, or don’t stop it, it can result in fines, a licence issue, and potential trouble with your insurance provider if it contributes to a health or fire-related claim.
