If you are working as a taxi driver, a regular car insurance policy will not be enough to protect your vehicle, you and your customers.
Anyone who is driving the taxi on the road needs taxi insurance as it is obligatory by law to drive your vehicle legally on the road.
You need the type of taxi insurance policy based on the type of taxi you drive. There are two types of taxis being driven on the road i.e. Public hire taxis and Private hire taxis.
Public Hire Taxis:
Such type of taxis can be hailed down by customers on the street and they don’t need to be pre-booked. Public hire taxis display a taxi sign and are usually known as London black cabs. Only public hire taxi insurance cover will protect you to pick up customers without a booking.
Private Hire Taxis:
A private hire taxi needs to be pre-booked in advance and often includes most minicabs and large multipurpose vehicle (MPV) taxis such as; people carriers. Private Hire Insurance cover will protect the passenger and the vehicle who have pre-booked the service of such taxis.
Who Can Get Taxi Insurance?
Many taxiinsurance providers will only offer the policy cover if you have; lived in the UK for at least five years, held a valid driving licence for at least three years, work as a taxi driver full time only with no other jobs, over a certain age, usually 21 (but some specify you must be at least 25 years old) and held a taxi badge for at least 12 months.
In addition, you are also required to pass the Driving Vehicle Standards Agency (DVSA) taxi driving test depending on your local council. Make sure to read carefully the eligibility criteria to save a wasted application.
The type of cover you may get can be restricted by the area you work in. You need to check your policy carefully as some policies only offer fully comprehensive cover if you are registered in certain areas.
What Cover Do You Need?
As a standard motor cover, taxi insurance offers the same three levels of protection i.e. third party only, third party, fire and theft and the third fully comprehensive cover. You need to understand which level of cover is right for you here.
Specific to taxi insurance, there are other coverage options you should consider including;
Public Liability Insurance:
If a customer suffers a personal injury or property damage while in your taxi, this type of cover provides protection and it will also cover any legal or compensation claims that occur as a result. Usually, taxi insurance policies include this cover as standard but you must be very careful to check your policy as most of the people make a mistake doing this.
Personal Use Cover:
When you arenot working, you will need this in place if you plan to use your taxi for the day to day use. Make sure to check that your local authority allows unregistered drivers if you are willing to share your vehicle with your partner. Most of the people ignore checking such terms mentioned in the policy.
Unlimited Mileage:
Most of the taxi drivers drive a large number of miles each year, so, if your job is to drive a greater number of miles, you must purchase an unlimited mileage policy that ensures that you will not be charged for driving too much. Look at the number of miles you drive on average each year to work out whether this cover is worth it.
How Much Does Taxi Insurance Cost?
On average,Taxi insurance is more expensive than standard taxi insurance cover because; taxi drivers drive more miles each year, carry more passengers, increasing the risk of personal injury claims, taxi cabs are larger than average cars – so stand in a higher insurance group.
Other factors similar to standard car insurance may include; the vehicle you drive, where you live, where you keep your taxi and your driving record.
How to Reduce The Cost Of Your Cover?
One of the best ways to find the affordable cover is to shop around and compare quotes. It is generally observed that most regular car insurers do not cover taxis but the specialist car insurance companies that can offer you cover for the taxi you are utilizing to carry passengers.
By building up a no claims history, choosing a vehicle from a lower insurance group, and by installing security features like CCTV into your taxi cab, you can also reduce your premiums to a great level. This quick guide covers more ways that help you keep your taxi insurance costs down. What type of car you are driving, you need to be careful that if you are driving Private hire vehicle, you need to get Private Hire Insurance cover and if driving a public hire then you need to get Public hire taxi insurance policy specific to your requirements.
