Private Hire Insurance
Private Hire Insurance
Private hire vehicle business owners can face numerous challenges when it comes to running a successful business. Taxis for private hire are the ones which have their fares and services booked in advance. Vehicles for private hire have become popular in the recent years courtesy of our busy lifestyles and the unreliable nature of flagging a taxi down. If you own and drive your taxi, your car is more than a vehicle – it’s your livelihood. Driving a taxi involves working at odd times of the day and often driving in various intercity areas which could pose a higher risk of an accident. Also, as compared to the standard car insurance policies, you are likely to cover longer distances. Therefore, keeping these aspects in mind, it is imperative that private hire insurance is likely to cost more than a normal car insurance policy. However, if you can find the right policy which will cover your business specific needs as well as arrive at an optimum cost, you will be at peace of mind.
Private Hire Insurance is a vital purchase if you are in the vehicle hiring business. Not only is it a legal requirement but it also serves as a valuable financial safeguard in cases of emergency. Since your vehicle will be on the road far more often than other vehicles, statistically you are more likely to make a claim and therefore, buying adequate protection is vital.
What is Private Hire Insurance?
Private hire insurance is required for those vehicles which are pre-booked and cannot display a lit taxi sign to show their availability. These vehicles are generally booked by individuals or enterprises via telephone, or with increasing popularity, apps. It may seem that the private hire vehicles are at a lower risk than the public hire vehicles however, it is often observed that the vehicles are generally older and in some cases the drivers, younger than their public hire counterparts. Hence, it is imperative to review the insurance policies and their corresponding features before buying one.
What are the levels of Private Hire Insurance cover?
The three levels of Private Hire Insurance are Third party only, Third party fire and theft and the Comprehensive policy.
- Third party only (TPO) – This is the most basic type of insurance cover and in case you have been involved in an accident on the roads, and any damage which has been caused to the third party will be taken care of. However, if your vehicle in damaged in the process, the TPO will not cover it.
- Third Party Fire & Theft (TPF&T) – This level of private hire insurance covers your vehicle from damage caused by a fire or theft over and above the benefits offered in the TPO level.
- The Comprehensive Insurance policy – The Comprehensive private hire insurance is the most advanced form of insurance and includes damage caused to you and your vehicle including all the covers mentioned above.
What points to keep in mind when choosing private hire insurance?
The first and the foremost point is to understand what level of cover you need and you can afford. Since it is the matter of your livelihood, you might want to invest a little more and have the necessary protection so that you do not have to cover any unexpected cost out of your own pocket. Aspects such as public liability, breakdown assistance, legal and medical expenses and even windscreen protection are worthy to be considered too. It is equally important to check the small print of your policy in the private insurance policies to ensure that you are not faced with disappointment in the event of making a claim.
How to apply for Private Hire Insurance?
There are numerous policies available if you are looking for individual cover or insurance for your single business cab or fleet of taxis. You need to have your vehicle registration number and your driving license handy to fill in the quotation forms. You might also have to input the estimated value of your vehicle and inform those quoting of when you purchased it. You will also be asked to input annual private mileage and business mileage and details such as who are the owner and the registered keeper of the vehicle and the location where it is kept overnight. You also have to declare if your vehicle is a hackney carriage or a black cab and whether it is used for contract work.
It is imperative to be open and honest while disclosing your personal and vehicle details to your insurer as every piece of information you provide adds up to calculating the amount of premium which you will be liable to pay. On the occasion where it is deemed that you have failed to disclose important facts, it could result in your policy being invalidated.
What is Private Hire Insurance for fleets?
If you are the owner of multiple private hire taxis and employ a number of drivers, you can insure all of them under one specialised private hire insurance policy. Since you no longer have to manage the paperwork for every vehicle’s insurance policy separately, it could save you a lot of time. Also, the premium for private hire insurance policies for fleets is often comparatively lesser plus, you do not have to remember multiple renewal dates either. However, certain insurers will have their individual capping limit for the maximum number of vehicles which can be insured under private hire insurance for fleets. If you are interested in insurance a fleet of taxi vehicles visit our taxi fleet insurance page.
How to get the perfect Private Hire Insurance quote?
The only thing which needs to be at the top of your agenda is – research. Unless you spend considerable time checking for the various types of private hire insurance available in the market and compare their features, you will not be able to gain a real understanding of the private hire insurance arena. Using a comparison website could be helpful whether you are searching for a new policy or looking to renew your private hire insurance.