Public Hire Insurance

Public Hire Insurance

If you are a public hire driver you will already know that Public Hire applies to the black cabs or hackney carriage and the British taxis which are available for impromptu hire from a taxi stand or down the street. The public hire taxis generally display orange or yellow coloured lights on top so that the public know if they are available for immediate hire. Taxis for public hire are generally utilised for travelling purposes and comparatively to shorter distances, in case you have the requirement move from one place to the other quickly. If you make your livelihood as a taxi driver, you would want to travel to the road being rest assured that you are covered by an appropriate public hire insurance. Like every kind of insurance there are some excellent taxi insurance policies available but the key is determining what is right for you. Public Hire Insurance is a type of taxi insurance, different from the Private Hire Insurance.

Why should you require Public Hire Insurance?

In case you are driving a public hire taxi for hire in the UK, you need public hire insurance. You will not be able to run your vehicle as a black cab or otherwise without an appropriate insurance policy in place. As each operating area in the UK would have different guidelines, you will be required to check the local licensing regulations of your area. ‘Third party only’ is the minimum level of cover you would need legally.

What are the risks for Public Hire Insurance?

The main risks of public hire insurance are:

  • Risk of damage caused by customers to your taxi.
  • Risk of theft and fire.

What are the Public Hire Insurance cover options?

There are four various levels of public hire insurance cover which includes

  • Third Party Only – This is the lowest level kind of insurance cover and beneficial if you are on a limited budget. This level will protect your passengers and allow you to drive the taxi around the UK legally.  The TPO option provides minimal protection for you as well as your vehicle.
  • Fire & Theft – If your vehicle is stolen or damaged by fire, the Fire & Theft Insurance will cover you.
  • Comprehensive – The Comprehensive Insurance policy will prove appropriate cover for every type of collision including the ones you are liable for. This is highest type of Public Hire Insurance cover and takes care of all the benefits highlighted in the TPO and Fire & Theft level of policies.
  • Personal Injury – It is always important to be covered if you become the victim of an assault while you are driving therefore, it could be necessary to take the personal injury cover.

What information does your Private Hire insurer need?

Numerous taxi firms and owners look for inexpensive taxi insurance as Public Hire Insurance can be costly. When it comes to protecting your livelihood, the appropriate level of cover becomes more important than the cost. The following aspects need to be kept in mind in case you are looking for a cheap Private Hire Insurance.

  • Location – Greater risk is associated if you commute in bigger cities because of denser traffic, inter area connectors, nightlife, driving at odd hours etc.
  • Driver’s age – The younger the driver, the greater is the risk in the eyes of the insurer, therefore, the insurance premium you will pay is often indirectly proportional to the driver’s age.
  • Type of vehicle – The size and the power of your engine or the fuel it’s engine runs on, will decide the amount of premium you are likely to pay.
  • Voluntary excess- If you raise the voluntary excess, many insurers will automatically decrease the cost of the premium.

What additional cover would you require with Public Hire Insurance?

It is imperative to consult with the local authority as certain areas like London might have a stipulated minimum level of public liability insurance requirements. Additional cover might include breakdown cover, loss of earnings, injury or illness insurance.

How can you save money on Public Hire Insurance?

Below we list down some options with which you can save money on Public Hire Insurance.

  • Secure your vehicle – Introducing immobilizers, central locking systems and alarms would add to the security measures and might considerably reduce the cost of the insurance. Public Hire Insurers maintain that the more secure the vehicle is, the less likely it is for the customer to make a claim and therefore they are often more able to offer you a better price for your policy.
  • Check policies online for discounts – It is important to keep an eye for special discounts and offers as they could save you a lot of money.
  • Get multiple quotes – You can do this by visiting insurance comparison sites like this website on the net or by simply getting in touch with your local insurers.

How to avoid a Public Hire Insurance claim?

Maintaining safety rules on the road is important as failure to adhere to this can have a have impact on your premium and chances of making a claim. Here are certain rules you can follow to ensure that your licence does not bump up the cost of your public hire insurance policy.

Stay within the laws and always abide by the rules of the road.

Acquaint yourself with the road rules of the area you operate in such as adhering to the speed limit as even if an accident is caused for no specific fault of your driver, certain insurers might refuse to extend coverage.

Building up your no claims discount over several years might earn you numerous discounts to claim free drivers, thereby ushering a discount of 20% to 30% dependant on the insurer. If you do not claim for 5 consecutive years, you might even receive a discount of up to 75%. If your taxi driver has been holding their taxi badge for a long time, this might assist in building up the credibility with your Public Hire insurer.