Taxi insurance is divided into two basic categories: public and private hire, with a third alternative for individuals who drive especially for Uber. Private taxis are ones that only pick up passengers who have made an appointment, such as an airport pick-up or minicab, whereas public cabs are those that you can call on the roads. Both types need licenses, and many insurance companies will ask you to provide proof of any papers before agreeing to cover you.
Public Hire Taxis
This is intended for taxi drivers who take fares from people on the roadside or who do not book a taxi in advance.
Private Hire Taxis
This includes taxi drivers who are only permitted to transport pre-arranged clients who have booked with a licensed operator. Private hire insurance doesn’t pay drivers for ‘hailed’ fares or unscheduled pick-ups. This covers high-class vehicles, minicabs, company pick-ups (such as airports), and other similar services.
In these insurances, you will be protected from the third party alone, third party, fire, and theft, or, ideally, completely comprehensive coverage in both categories. You may also include optional extras such as breakdown coverage, but they are not legally required.
What is the need for Taxi Insurance?
Taxi insurance not only ensures that you are legally permitted to drive and function as a taxi driver on UK roads, but it will also safeguard your interests if you put together a complete package of protection. It provides you peace of mind that if you are wounded, you will still have a certain income, it will pay your legal bills (which may be exorbitant), and it will defend you against charges for harm or damage in the case of an accident.
To apply for a taxi driver’s license, you must also have the proper taxi insurance (either private or public hire protection).
How can you lower the cost of Insurance?
Insurance costs are a major concern for both private and public hire drivers. Certain methods will help you to lower the cost of Insurance such as,
- Installing dash-cams and in-car cameras is one of the finest methods to cut costs and protect you.
- Look for ‘coupons’ and special bargains, but keep in mind that once the promotional time expires, renewal rates might skyrocket. Seek out long-term offers from trusted suppliers.
Which Insurance to choose?
One of the most effective methods to ensure that you have the best taxi insurance for you, your car, and the sort of business you’ll be running is to seek a quotation from a professional taxi insurance broker.
The top brokers in the field will research the market on your behalf – frequently automatically, using simple comparison tools – to present you with the best offers for the customized policy you want. This way, you can be certain that you are buying the finest coverage at the best price.
Brokers may also have access to goods and services and pricing that are not displayed when going straight to insurance providers and may advise you on the policy you require.