When a taxi or private-hire vehicle is impounded, the release process is stricter than for an ordinary car. Because the vehicle is licensed for hire and reward, standard impound insurance usually isn’t enough. A specialist policy covering taxi or private-hire use will almost always be required before the pound will release it.

Why standard impound insurance isn’t suitable

Impounded-vehicle insurance is designed for privately used cars and vans. It only covers social, domestic, or commuting use, and specifically excludes driving for hire or reward. Taxi or private-hire work counts as commercial use under UK insurance law, so a normal impound policy wouldn’t meet the legal requirements of the Local Government (Miscellaneous Provisions) Act or the terms of your taxi licence.

If you try to use a standard impound policy, the pound staff may refuse release once they see the wording. They check that the certificate lists the correct use class — for instance, “public hire,” “private hire,” or “chauffeur.”

Specialist taxi impound insurance

Several authorised brokers and underwriters offer short-term policies specifically for licensed taxis and private-hire vehicles. These policies meet the same police-release requirements as private-car impound cover but include the correct “hire and reward” usage category. They’re normally valid for 30 days, giving you time to reinstate your regular taxi insurance afterwards.

When you arrange one of these policies, you’ll need to supply:

• the taxi plate or licence number issued by your local authority;
• the vehicle registration and driver’s details;
• a copy of the V5C logbook or new keeper slip; and
• photo ID for the policyholder or fleet owner.

Once the policy is active, a certificate will be emailed or printed immediately. You’ll need to take this certificate to the pound for verification before the vehicle is released.

Vehicles licensed under local authority control

Taxis and private-hire vehicles are regulated by local councils, each of which sets its own insurance verification process. Some councils require that the impound-release certificate lists both the driver and the council’s licensing area. Others request that proof of licence and plate number be shown at the pound. Contact your local licensing office if you’re unsure which applies — they can confirm the exact documents you’ll need.

After release

Once the vehicle is recovered, you’ll normally need to notify your local licensing department that it’s back in service and confirm that insurance is in place. You may also need to provide a copy of the new certificate before resuming work. Driving for hire without valid “hire and reward” cover remains an offence even if the car has just been released from a pound.

Fleet and operator licences

For larger taxi or private-hire businesses, the operator or fleet manager can arrange impound release on behalf of the company. In these cases, the insurance must be issued in the business’s name and cover all authorised drivers. Proof of operator licence and company ID will be required at the pound before release.

Final note

Yes, taxis and private-hire vehicles need specialist impound insurance. Standard short-term impound policies don’t include hire-and-reward use, so they won’t be accepted for release. The correct approach is to arrange a dedicated taxi impound policy through an authorised broker, ensure it lists the proper licence details, and present that certificate when you attend the pound. Doing so keeps both the release and your licensing obligations fully compliant.

Check here for more useful information about impounded cars!

Please note: impound rules, collection windows and fee structures are set locally and can change at any time. Details on this site offer a broad outline only and are not guaranteed to match the requirements of any individual pound or authority.