# Taxi insurance in Germany: taxis and private hire cars with a driver > Driving passengers for money in Germany needs a licence under the Passenger Transport Act and a motor policy written for that use. Private car policies expressly carve out taxis and private hire cars, many insurers do not write the trade at all, and a standard comparison site rarely finds a tariff. Taxi insurance combines motor liability, own damage cover and protection for the days the car stands still. Quelle/Source: https://www.nammert.com/en/insurance-broker-taxi-insurance.php Updated: 2026-11-13 ## Can I drive for a ride app on my private car insurance? No. In Germany, app rides with a driver are private hire (Mietwagen mit Fahrer) under the Passenger Transport Act and need a licence plus a policy that names this use. Several insurers expressly exclude taxis and private hire cars from their private car terms, and a wrong declaration can lead to recourse or reduced payment after a claim. The legal minimum cover is the same as for a private car as long as the vehicle has no more than nine seats besides the driver. ## At a glance - **Mandatory?:** Yes, motor third party liability under the Compulsory Insurance Act - **Legal minimum cover:** EUR 7.5m injury, EUR 1.3m property, EUR 50,000 financial loss per accident - **More than nine seats:** higher minimums per extra seat under the annex to section 4 PflVG - **Taxi vs private hire:** two licence types with different duties under sections 47 and 49 PBefG - **Own damage:** optional, partial cover often only together with taxi liability - **Downtime after a crash:** the other side pays proven lost profit, not a flat loss of use rate ## Taxi or private hire: the licence shapes the policy German law distinguishes two forms. A taxi must operate, must carry anyone within its compulsory area and must charge the official fare there, and it may wait at taxi ranks. A private hire car with a driver takes bookings through its registered base and has to return there after each trip unless a new booking has come in. The Federal Court of Justice has confirmed this return duty for trips booked through apps as well. For the insurer, what counts is the use stated in the policy. Taxi and private hire are rated separately, and a wrong declaration can cost you cover after an accident. If you drive both or work through platforms, make sure that is written into the contract. ## Why few insurers want this business Taxis cover long distances, often at night and in heavy city traffic, so many motor insurers decline them or route them to a specialist subsidiary. Private policy wordings regularly exclude taxis, private hire and self drive rental cars from features such as occupant cover or roadside assistance. In practice this means your claims record is your most valuable asset. A driver who has been cancelled once has very few options left. ## When the car stands still If the other driver was at fault, their insurer pays your loss of earnings. For a commercial vehicle such as a taxi there is no flat daily loss of use payment, only the lost profit you can actually prove. You may hire a replacement taxi, but the courts measure the hire cost against the earnings you would otherwise have lost. If nobody else was at fault, nobody pays. Only your own add on, a daily allowance during downtime or business interruption cover, closes that gap. ## Passengers, drivers and the day's takings Injured passengers are covered by the taxi's motor liability, even if your own driver caused the crash. The driver is not covered there when at fault; that is what driver protection is for, and employed drivers also have statutory accident insurance. Occupant accident cover pays fixed sums regardless of fault and is optional. Robbery and violence against drivers are a real risk in this trade. Whether takings, the taximeter, the till system or a camera are covered depends on each insurer's taxi clauses. ## What is covered - Motor liability for damage to third parties and to your own passengers - Partial cover for theft, fire, glass, storm and collisions with game - Comprehensive cover for at fault accidents and vandalism - Taxi equipment such as roof sign, taximeter and radio, depending on the policy - Daily allowance during downtime after an accident, as an add on - Roadside assistance with onward travel for passengers - Occupant accident cover and driver protection as extras - Several vehicles in one contract for licensed operators ## What is not covered - Trips without a valid licence or without the passenger transport driving permit - Any use other than the one stated in the policy - Driving under alcohol or drugs, with recourse under the liability cover - Wear, operating damage and brake damage under own damage cover - The driver's own injuries when at fault, without driver protection - The agreed excess ## Who needs it - Taxi operators with their own licence, from one car to a small fleet - Private hire operators with drivers, including those working through ride apps - Operators doing patient transport, school runs or wheelchair accessible trips - Newcomers taking over an existing licensed business - Drivers who also use their taxi privately ## Who does not need it - Employed drivers whose employer insures the vehicles; driver protection matters more to them - Car sharing among friends where only costs are split ## What it costs A taxi costs considerably more to insure than a private car because it drives further and has more claims. One large insurer advertised taxi liability from EUR 800 a year including insurance tax in 2016, with an example of about EUR 1,600 including comprehensive cover. These figures are old and apply to clean records only, so read them as an order of magnitude, not a price. **What drives the premium:** - No claims class and claims history of the business - Taxi or private hire, city and registration district - Vehicle model, seats and new value - Number of drivers, their age and years since passing the test - Sum insured, excess and repair shop binding - Add ons such as daily allowance, assistance and occupant cover - Number of vehicles in the contract _The premium is only fixed in the quote, once the insurer has reviewed vehicles, drivers and past claims._ ## The policy levels on the market - **Taxi liability:** The compulsory cover with a high single limit, passengers included. For older vehicles where own damage cover no longer pays off. - **Liability plus own damage:** Partial or comprehensive cover with an excess, taxi equipment and glass included. The usual choice for newer and financed cars. - **Taxi package with downtime cover:** Adds a daily allowance, assistance with onward travel, driver protection and no claims protection. For businesses where a car off the road means lost revenue at once. ## How to recognise a good policy | Criterion | Minimum standard | Strong policy | Why it matters | | --- | --- | --- | --- | | Liability limit | statutory minimums | EUR 100m single limit with a high cap per injured person | A serious crash with several passengers quickly exceeds the minimums. | | Use stated | taxi only or private hire only | taxi, private hire and app trips named | A wrongly stated use puts cover at risk. | | Taxi equipment | not mentioned | roof sign, taximeter, radio, till system and camera included | Private own damage wordings do not know these parts. | | Damage by passengers | not covered | soiling and vandalism inside the car included | Common in the trade, and the culprit is rarely known. | | Daily allowance | none | fixed daily rate with few waiting days | Without another party at fault, nobody pays for downtime. | | Drivers | named drivers only | changing and employed drivers without naming | In shift work the driver changes all the time. | | Assistance | none, or private assistance with a taxi exclusion | help from kilometre 0 with onward travel for passengers | A breakdown at the rank is the most common case. | ## Insurers on the German market Far fewer insurers write taxis and private hire cars in Germany than private cars. Listed are insurers where we found taxi products or policy wordings with a taxi section. This is a market overview, not a statement about who we work with. - **Württembergische**: dedicated taxi insurance for business customers with liability and own damage cover - **KRAVAG**: transport insurer of the R+V group, which handles the group's taxi and private hire business - **SIGNAL IDUNA**: group with its own taxi assistance cover for taxis and private hire cars - **Allianz**: taxis under the business section of its motor terms, agents and brokers - **ALTE LEIPZIGER**: motor terms with rules for taxis, broker distribution - **AXA**: commercial motor insurance, agents and brokers 106 insurers supervised by BaFin, the German regulator, are licensed for this class of insurance. (Kraftfahrzeug-Haftpflicht, Kraftfahrzeug-Kasko). Source: BaFin company database, 2026-09-18; EU insurers without a German office excluded. ## Typical claims and who pays - **Rear end crash, two passengers hurt** (compensation and treatment, often five figures): This is what motor liability is for. Passengers are covered even if your driver caused the crash. - **Passenger wrecks the back seat** (cleaning and upholstery, a few hundred euros): Only a taxi policy that names damage by passengers pays, often up to a limit. - **Taxi in the garage for two weeks** (two weeks of takings): Without another party at fault only your own daily allowance pays, after waiting days and up to the agreed rate. - **Taximeter and roof sign stolen** (equipment and fitting, easily four figures): Partial cover pays fitted parts, but taxi equipment only if the wording includes it. - **At fault crash, car written off** (the value of the vehicle): Only comprehensive cover replaces your own car, less the excess. Liability alone pays the other side only. - **Driver without passenger permit** (your entire own loss): Liability still pays the victims but recovers the money from you, and own damage cover does not pay. ## Myth or truth - „Taxis need a higher legal minimum cover than private cars." ✘ No. The minimums only rise for vehicles with more than nine seats besides the driver. A normal taxi has the same minimum as a private car, but should be insured well above it. - „Passengers are covered by the taxi's motor liability." ✔ True, even if your own driver is at fault. The driver is not covered there when they caused the accident. - „After a not at fault crash the other side pays a flat daily loss of use rate." ✘ For private cars yes, for taxis no. Commercial vehicles get the proven lost profit, so keep records of your takings. - „A private hire car has to return to its base after each trip." ✔ Yes, unless a new booking has come in. The Federal Court of Justice confirmed this also for app based trips. - „Private car insurance is fine if you only drive passengers on the side." ✘ No. The declared use must be correct, and several private wordings exclude taxis and private hire cars. After a claim you risk recourse and reduced payment. ## Common mistakes - Insuring a taxi or app car on a private policy or with the wrong use - Not declaring platform trips or private hire operations - Letting new drivers work without checking who is covered - Failing to document lost earnings after a not at fault accident - Hiring a replacement taxi at any price without comparing it with the lost earnings ## FAQ ### How much is taxi insurance in Germany? Clearly more than for a private car. One insurer advertised taxi liability from EUR 800 a year in 2016 and gave an example of about EUR 1,600 including own damage cover; operators with claims or without a no claims record pay several times that. The real premium is only known from a quote. ### Is there a higher legal minimum for taxis? Not for a normal taxi. The minimums under the Compulsory Insurance Act only rise for vehicles with more than nine seats besides the driver. Carrying passengers is still a good reason to choose a high single limit. ### Are my passengers insured? Yes, through the taxi's motor liability, even if your own driver caused the accident. Occupant accident cover pays fixed sums on top, regardless of fault. ### What licence do I need to drive for an app? The operator needs a private hire licence under the Passenger Transport Act, and each driver needs the permit for passenger transport on top of the normal licence. The insurance must state the private hire use. ### Who pays when my taxi is off the road after a crash? If the other side was at fault, their insurer pays your proven lost profit or a reasonable replacement taxi. If you were at fault, only your own daily allowance or business interruption cover helps. ### Can I take my no claims discount from my private car? Some insurers transfer it fully or partly, others rate taxis on their own tables. It is worth comparing, because the rating drives the premium for years. ### Why use a broker? Because few insurers write taxis and their taxi clauses differ widely on equipment, drivers, downtime and rating. We obtain quotes and compare the wordings. The insurer pays our commission. ## Legal basis and sources - [Insurance Contract Act (VVG, German)](https://www.gesetze-im-internet.de/vvg_2008/) - [BaFin company database (licensed insurers)](https://portal.mvp.bafin.de/database/InstInfo/) ## Request quotes We obtain quotes and come back with a comparison, free of charge. You can write in English. https://www.nammert.com/en/insurance-broker-taxi-insurance.php#anfrage --- Your broker: Norman Nammert, trading as NAMMERT. Insurance broker licensed under section 34d(1) of the German Trade Regulation Act. Broker register no. D-C08Q-TOSD4-37. NAMMERT Assekuradeur GmbH is a separate company. It does not arrange your contract. NAMMERT Assekuradeur GmbH, Karl-Marx-Straße 4, 15711 Königs Wusterhausen, +49 3375 29 12 77, info@nammert.com. Wikidata: Q141141479.