What you need to know about PHV insurance

To drive for Uber or any rideshare platform in London, you’ll need PCO and PHV licenses, along with mandatory rideshare insurance for yourself and your vehicle. If you’re driving a subscription car, your provider may already include rideshare insurance.

Here’s a quick guide to PHV insurance; what it is, why it’s essential, and how it helps you start earning.

What is PHV Insurance?

Private Hire Vehicle (PHV) insurance provides coverage for private hire drivers, ensuring protection for both the driver and passengers in case of an accident. It’s mandatory in London for anyone operating as a private hire driver.

Unlike standard car insurance, PHV insurance is tailored specifically for those using their vehicle to transport passengers who book rides in advance through an app or operator.

Did you know? PHV insurance does not cover drivers picking up passengers from the street as this falls under taxi insurance.

Is PHV Insurance required to drive for Uber?

Yes, PHV insurance is mandatory for Uber drivers in London. Uber requires drivers to provide proof of valid PHV insurance during the sign-up process. Although Uber partners with insurance providers like Acorn among others, drivers are responsible for arranging and managing their own coverage.

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 their rideshare insurance policy covers*:

_{*Data provided by Nimblefins}

Types of PHV Insurance

There are three levels of PHV insurance cover available in the UK:

1. Third-Party Only: Covers damages to other people, vehicles, or property, including your passengers, but not you or your vehicle.

2. Third-Party, Fire & Theft: Includes third-party coverage plus protection for your vehicle in case of fire damage or theft.

3. Fully Comprehensive: Covers all of the above, as well as damage to your own vehicle.

PHV insurance should also include public liability cover, protecting you against claims made by passengers or the public in case of an incident. Many policies offer the option to include legal expenses for a small additional fee.

How much does PHV Insurance cost?

PHV insurance is generally more expensive than standard car insurance due to the risks involved in private hire driving. Factors influencing the cost include:

• Your driving history and experience

• Type and age of your vehicle

• Annual mileage

• Where the car is parked when not in use

Typical costs for a fully comprehensive PHV insurance policy range from £1,500 to £3,500 annually for experienced drivers with clean records. New drivers or those with less experience may face higher premiums.

How to save money on PHV Insurance?

Although PHV insurance can be costly, there are ways to reduce your expenses:

• Choose the right Vehicle: Opt. for a car that’s popular with insurers, such as Uber-approved models. Splend has an entire fleet of Uber-approved EV's PCO-ready to choose from.

• Pay Annually: Paying upfront may secure a discount compared to monthly installments.

• Secure your Vehicle: Parking your car in a secure location and using additional security features like CCTV or trackers can lower your premium.

• Tailor your Coverage: Only pay for essential extras and avoid unnecessary add-ons.

• Consider a Subscription Plan: A car subscription plan like Splend’s Flexi or Flexi own includes PHV insurance, potentially saving you money on upfront costs.

What is the difference between Rideshare Insurance and PHV Insurance?

While the terms are often used interchangeably, PHV insurance is specific to the UK and applies to private hire drivers who operate under a licensed operator, such as Uber or Bolt. Rideshare insurance, a broader term, is used globally and includes coverage for drivers on platforms like UberX and Uber Eats. PHV insurance must meet stricter requirements to ensure compliance with UK laws.

How Splend simplifies PHV Insurance

At Splend, we understand the complexities of private hire driving, which is why we include comprehensive PHV insurance in our car subscription plans. This not only ensures you’re fully covered but also eliminates the hassle of sourcing and managing your own policy.

With Splend, you get more than just PHV insurance. Our all-inclusive subscription plans also include:

• PHV license processing

• Car maintenance and servicing

• MOT inspections

• 24/7 roadside assistance

• Dedicated support to help you succeed

Whether you’re new to private hire driving or looking to simplify your existing setup, Splend is here to make the journey smoother and more profitable.

About Splend

At Splend, we believe in drivers. We know their vehicles need to work harder than most; that they drive more miles than most; that their insurance is hefty; their maintenance costs high and that they can face unreasonable finance rates – which is a heavy load to carry on their own.

That’s why at Splend, we exist to support rideshare drivers with a new model, that takes all those car ownership costs, and provides them for less, with lower purchase prices, better rates, lower servicing and insurance costs – all for one weekly repayment, all in one place.