UPDATE: 27th June 2016
From the 27th June 2016 the new updated Transport for London Private Hire regulations require all private hire vehicle drivers to carry or display a copy of their Hire & Reward insurance in their vehicle. Any Private Hire Badged vehicles will have to have Hire & Rewards insurance regardless of working or not.
Existing private hire drivers will have up to the 11th of July 2016 to implement these new regulations.
In order to use your vehicle as a minicab cab or chauffeur your must have the correct type of insurance. Normal vehicle insurance will not cover you to use your car to pick up passengers.
All Private Hire drivers need to have Hire & Reward insurance. You can find brokers online who can help you get the best deal and there are options of paying for this insurance on a weekly, monthly, quarterly or yearly basis.
As with normal car insurance, the area you live in and the amount of experience will play a part in how much your premium is. There are also the usual options of buying just third part or fully comprehensive insurance.
When working for an operator that provides you with a vehicle, the operator will in most cases provide you with Hire & Reward insurance. You will most likely be asked to pay a small weekly fee for this insurance, which is deducted off your earnings.
For driver who rent a vehicle, they will have the option of insuring it themselves or your rental company can offer your fully comprehensive insurance with the vehicle. Please always double check that they are providing you with the correct insurance as the consequences of not having the correct insurance lay on the driver of the vehicle and not the company that provides the rental vehicle.