Everything You Need To Know About Taxi Insurance
If you are a taxi driver, you need to ensure that you buy a taxi insurance which is durable, competitive and takes care of you and your vehicle during emergency situations.
As a cab driver, you are likely to drive long and often odd hours in intercity areas as well as the outskirts which could pose a high risk of emergency situations and accidents. Therefore, you need to compare insurance policies on a regular basis instead of simply renewing your existent insurance.
The level of taxi insurance you require would depend on your individual circumstances, whether you need individual or fleet cover and the kind of vehicle you are looking to insure. You could either opt for a private or a public hire insurance, based on the kind of business you are involved in. Taxi insurance companies perceive taxi drivers as high risks because of the nature of their job, therefore it is likely that the premium for Taxi insurance would cost most, hence it is important to ensure that you find an insurance which fits your requirements.
Private and Public Hire Taxi Insurance
Private Hire Taxi Insurance can be perceived as comparatively low risk in comparison to public hire because these vehicles and chiefly pre-booked and do not bear the taxi display sign. However, since the vehicles are generally older and the drivers sometimes younger, the premium might become higher based on these factors.
London’s Backs Cabs are a typical example of Public Hire Taxis for which insurance cover needs to be bought. Public hire taxis are hired by customers on the spot on the streets. These vehicles display the taxi sign, and can be called as hackney carriages. Although the perceived risk is higher, the insurers can be favourable towards your public hire taxi if the vehicles are fairly new and the drivers are older.
Not every Taxi Insurance provider can offer both private as well as public taxi insurance; therefore it has to be ensured that the policy fits your needs by searching the market.
The various levels of Taxi Insurance
Like Standard Car Insurance, the levels of Taxi Insurance will include the Third Party Only (TPO) cover which will cover the damages caused to other people by your vehicle, the Third Party Fire and Theft (TPFT) cover, which will cover damage to third party’s property as well as for fire and theft for your own vehicle and the comprehensive policy, which is the highest form of a Car Insurance Policy and offers a plethora of coverage.
In case of larger taxis with more accommodative power, the insurance required to cover them would belong to a higher group with a higher premium to match the needs of the vehicle. Minibuses and MPV taxis could fall under this section. If you own a fleet of taxis, you could consider options for Taxi Fleet Insurance, which can take care of your multiple vehicles under the umbrella of a single insurer. You may also pay a comparatively lesser premium for them.
Taxi Policy Considerations
Following are some of the considerations one might need to make before buying Taxi Insurance.
Named driver policy – You can opt for a Named driver policy if you solely drive your own taxi.
Any driver policy – This feature will cover multiple drivers, usually above the age of 25. Taxi Fleet owners can usually benefit by opting for this cover.
Public Liability Insurance – You are likely to opt for Public Liability Insurance to ensure that your insurer covers third party interests in the event of an emergency. It is not a legal requirement however, it can be looked as a necessary precaution which needs to be taken by taxi owners.
Taxi Breakdown Cover – This feature might automatically be included in the Taxi Insurance cover however; it is advisable to find out the extent of the coverage and to seek insurance add-ons in case the basic coverage is not enough. It is imperative to contemplate on this aspect of the insurance as chances are that you might lose valuable fare earning time in the pursuit of getting your taxi back on the roads.
Things to Remember before you buy or change your Taxi Insurance
- Taxi Insurance providers tend to be confined to a specific region and more than often, some insurers exclude high risk areas such as Northern Ireland and London. You will find separate dedicated Taxi Insurance policies for these specific regions and you can compare prices to arrive at the right deal for yourself.
- The No Claims Bonus for Taxi Insurance works similar to the standard Car Insurance policies. You are offered a bonus and consequent reduction in your premium if you do not make any claims against your policy.
- You are required to declare every personal and vehicle detail your insurer asks while making the deal. In case you fail to and consequently make a claim later, it might lead to a refusal to make the payout and cancellation of the insurance if your vehicle is involved in an accident.
- You can look to reducing the premiums towards your Taxi Insurance if you secure your taxi, ideally with a Thatcham 1 or 2 security device or any other ways as approved by your insurer.
- Qualifying in the DVSA Driving test is yet another qualification which some of the Taxi Insurance providers require.
- In case you use your vehicle for both personal and commercial purposes, you need to look for Taxi Insurance which will cover your social as well as business trips.
There are numerous Insurance companies which offer Taxi Insurance policies along with numerous features. Comparing them against their features, premiums and exclusions is important before making the final choice.