Why Getting Insurance for an Impounded Taxi or Private Hire Vehicle Is a Headache

If your taxi or private hire vehicle has been impounded, you're probably feeling the stress already. As if losing your work vehicle wasn't bad enough, now you've got to figure out how to get it back; fast. And here's the sticking point: sorting out the insurance isn't as simple as just buying a quick policy online.

Taxis and private hire vehicles are already held to stricter insurance rules than standard cars. Throw an impoundment into the mix, and suddenly, going after the right cover becomes a whole new try out.

Let's talk about why it's so complicated; and what you can do to fix it.

Can You Get Impound Insurance for a Taxi?

The short answer? Maybe; but don't expect it to be easy.

Most mainstream insurers won't touch impounded vehicles, and even fewer are willing to provide policies for taxis or private hire cars. Why? Because from their perspective, a taxi that's been impounded is an even bigger risk than a regular car in the same situation.

Here's why taxi impound insurance is such a rare find:

• Higher risk: Taxis spend more time on the road, increasing the chances of accidents and claims.
• Regulatory hurdles: Many councils have strict requirements for taxi insurance, which not all insurers meet.
• Impound yard policies: Some pounds won't release commercial vehicles unless you show proof of long-term insurance, not just a quick temporary fix.

Because of all this, your best bet is checking around for a specialist insurer who understands the specific needs of impounded taxis.

What Are Your Options?

If your current insurer refuses to cover your impounded taxi (which, let's be honest, is likely), don't panic. You still have a few options to explore.

• Specialist impound insurance – A handful of providers offer policies designed specifically for impounded taxis, but they can be pricey and hard to find.
• Annual taxi insurance with impound cover – Some insurers might require you to take out a full-year taxi insurance policy that includes impound release.
• Short-term taxi cover – In rare cases, a temporary insurance policy might work, but many impound yards won't accept it for taxis.
• Vehicle recovery services – If insurance is proving impossible, you could pay for a recovery truck to collect the vehicle instead. No insurance needed; just a tow and a fee.

Before spending money on any policy, double-check that it meets the impound yard's rules and your local authority's licensing requirements. You don't want to pay for a policy that's useless when you turn up to collect your car.

Time Is Not on Your Side; Act Fast

The longer your taxi sits in the pound, the worse this situation gets.

Most impound yards only hold vehicles for a limited time; usually 14 days; before they auction them off or send them to be scrapped. Every day it sits there, storage fees are stacking up, which means waiting around could end up costing you way more than just an insurance policy.

What If Someone Else Wants to Collect the Vehicle?

Let's say you're out of town, or for some other reason, you can't pick up your taxi yourself. Can you send someone else to do it for you?

Maybe. But it's complicated.

Unlike standard cars, taxis and private hire vehicles are subject to strict licensing laws. Some councils require the person picking up the car to be the licensed operator, not just a random friend or family member.

Before making arrangements, call both the impound yard and your local authority to confirm what's allowed. The last thing you want is for someone to show up, only to be turned away.

Our Closing Message:; Don't Wait Until It's Too Late

Getting insurance for an impounded taxi or private hire car is way more complicated than for a standard vehicle. Many insurers won't provide cover, and the ones that do could have strict conditions. Acting fast is the big deal; because storage fees add up quickly, and if you wait too long, you might lose your vehicle altogether.

Need help investigating an insurer? Get a quote now; call the number below and sort it before it's too late.

Important: You Only Have Seven Days

By law, you must visit the police pound within seven working days of receiving the seizure notice.