What you need to know about PHV insurance
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If you want to become an Uber driver , become Ola driver or drive for other rideshare platforms in London, apart from PCO and PHV licenses, it’s mandatory that both you and your car are covered by rideshare insurance. If you’re driving a subscription car, it may even be covered by the car subscription provider. We put together the essentials on what is rideshare insurance, specifically PHV insurance, and what you need to know in order to start earning.
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What is Rideshare Insurance?
In order to use your car for ridesharing, you must have different car insurance than standard personal car insurance. Rideshare insurance is designed specifically for rideshare drivers, and It’s similar to a comprehensive car insurance policy. It covers incidents that may happen while you’re using your car to transport passengers. If you only plan to become an Uber Eats driver or an Amazon Flex delivery driver, or you’re an occasional Uber driver, doing less than 20 hours a month, you might want to consider a Hire and Reward Policy. You can opt for a pay-as-you-go/monthly policy to supplement your private car insurance, instead of committing to a 12-month contract. However, if you’re ready to become an Uber driver as more than just a part-time activity, PHV insurance is what you need to go for.
What is PHV Insurance?
Private hire insurance (PHV insurance) is a legal requirement for all private hire drivers in London who pick up passengers that have booked their ride through a ride-hailing app. Whether it’s Uber, Bolt, or Ola, they all require PHV insurance. It protects both drivers and passengers in case of an accident.
The difference between taxi insurance and PHV insurance is that PHV doesn’t allow for picking up passengers who hail a car in the street, for example.
Is PHV insurance required to be an Uber driver in London?
Yes.
In the UK, Uber doesn’t offer any kind of insurance for drivers. This means they have to manage their own insurance, and they have to provide proof of proper insurance when they sign up to drive.
What kind of PHV insurance is available for Uber drivers?
Because Uber considers itself a Transportation Network Company, not a taxi firm, your policy needs to cover specifically using your own car for hire or reward. In the UK there are three levels of PHV cover you can choose from:
Third-party – covers others in an incident, plus your passengers – not you or your car
Third-party, fire & theft – third party cover with your vehicle also covered for fire damage or if it’s stolen
Fully comprehensive – covers everything.
Fully comprehensive is the most complete insurance policy on offer for Uber drivers. We strongly recommend it, if possible.
Because of the risks involved in driving people around, Uber drivers also need to take out public liability cover. This covers any claims made against you by passengers or members of the general public who may be involved in an accident while you’re driving.
For a small additional cost, a public liability policy can also cover your legal expenses.
How much does PHV insurance cost?
PHV insurance is generally more expensive than usual car insurance. However, the exact cost depends on several aspects such as driving history, policy type, car type, age, years of driving experience, as well as mileage. According to Inshur, a typical PHV driver, over 25 years years of age, with a standard saloon car and a clean history will pay around £1,500 – £3,500 a year for fully comprehensive cover. This can rise significantly for new drivers or those with inconsistent driving history.
Does Uber Provide PHV Insurance?
Not exactly. They don’t offer PHV insurance directly to drivers, but they do partner with various insurance providers like Acorn, Inshur, and Zego, where you can easily get Uber-approved rideshare insurance. These providers make it even easier by submitting the insurance papers directly to Uber for you. However, Uber does provide some insurance to protect its drivers while they’re working from sickness or injury, but they don’t provide cover for your car or your passengers.
Here are some of the things that the rideshare insurance policy covers*:
| Claim | Value | On or off trip? |
| Medical expense reimbursement | Up to £7,500 | On-trip |
| Accidental death payment | £50,000 lump sum + up to £6,000 funeral costs | On-trip |
| Inconvenience payment for permanent injury | Up to £50,000 | On-trip |
| Inconvenience payment for hospitalisation | £1,000 | On-trip |
| Inconvenience payment for temporary injury during transportation services | £75 per day for up to 30 days for partner drivers £30 per day for up to 30 days for delivery partners | On-trip |
| Severe sickness & bodily injury payment (leading to more 7+ consecutive days unable to work) | £75 per day for up to 15 days for partner drivers £30 per day for up to 15 days for delivery partners | Off-trip |
| Maternity/Paternity Payment | £1,000 lump sum | Off-trip |
| Jury service payment | £500 lump sum | Off-trip |
*Data provided by Nimblefins
How can I save money on my PHV insurance?
There’s no way around it – being an Uber driver is not cheap, especially when you count all the other expenses that come with it, like the PHV and PCO licences. Here are a few tips on how you can save money on your PHV insurance:
Make sure that you’re only paying for the cover you need. Even though PHV insurance is essential as an Uber driver, you can save a few pounds by removing extras that you don’t need, like windscreen cover.
Drive a popular Uber car that insurers are used to covering
Consider going for a car subscription plan that includes PHV licence and PHV insurance, such as the Splend Flexi or Flexi own
Pay your insurance annually, if you can. You may get a discount for paying the entire sum in one go.
Consider where you drive your car while you’re using it for Uber, but also where you park it. You may also be able to get a discount on your policy if you prove you can store your car securely and thus lowering the risk of theft.
Consider additional security measures, such as CCTV, security locks, or tracking devices These are great long-term investments as you can use them with your next car too.
How can Splend help me become an Uber driver?
Splend is more than a car subscription company. We provide you with a safe and reliable new-model car for rideshare, and everything else you need to start earning. The weekly subscription fee includes comprehensive rideshare insurance. Besides being covered in case of an accident, this means less paperwork for you. It doesn't stop there. Apart from rideshare insurance, here are a few other things Splend subscription comes with:
No paperwork for your car
PHV licence
MOT car inspection
Dedicated support
24/7 roadside assistance
Maintenance
Additional customer benefits
About Splend
Splend is more than a set of wheels. We’ll help steer your career. In addition to providing you with the most important tool in your career as a rideshare driver, we also offer ongoing training, support, and data-driven feedback via your personal Customer Specialist. You also enjoy a growing array of customer benefits including discounts from our partners. For more information about Splend, drop by our London Hub at 393 Edgware Road Cricklewood, London, email us, or say hello on 0333 016 4331
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