Taxi Insurance

Taxi Insurance

Like the other types of vehicle, taxis have to be insured before you legally take it out to make money on the road in the UK. Generally speaking taxi insurance is one of the more expensive forms of motor insurance as the risk of accidents is far higher than private cars because they have to spend most of the time on the road. There are many taxi insurance providers in the market and more companies are now offering taxi insurances on the internet with competitive rates. The cost of your taxi insurance cover depends on the level of insurance cover that you choose and the type of your taxi cab use.

Premiums can vary considerably, depending upon the type of vehicle you have. Your local Licensing Authority will only approve certain types of vehicle, as they must be of adequate size to carry fare-paying passengers. So, before buying a vehicle, always check with them that the vehicle is acceptable.

There are various aspects of taxi insurance policies available, including:

• Taxi fleet, private, public and contract hire vehicles, including minibuses;
• Polices for short term cover are available for Taxi Insurance for three, six and twelve months;
• Monthly instalments are also available;
• Areas considered (some insurance companies will exclude places like London);
• Bonus earning schemes;
• Windscreen and Glass cover
  (sometimes without loss of bonus);
• Up to 8 years' no claims discount;
• Legal expenses cover;
• Replacement plated cab facilities;
• Optional breakdown cover;
• 24 hour claims lines.

Type Of Cover

There are 3 types of taxi insurance cover available which are different in the benefits;

• Fully Comprehensive: this covers the third parties, fire and theft, and damage to your taxi cab whether the accident causes is caused by your mistake or not.
• Third party fire & theft: this includes the damage caused directly by fire, explosion, theft or attempted theft of your taxi cab as well as cover to third parties.
• Third party only: you can claim only for the amount of damage to other persons caused by your taxi cab.

It is important to consider your needs and your budget when looking for taxi cab insurance cover, and make sure that you get adequate cover to protect your passengers and other third parties especially if your cab is a main source of income.

Types Of Insurance Needed:

Taxi insurance has to include liability for yourself, other road users and passengers. Also, it needs to include cover for your income against loss of business.

Employer’s liability insurance is required if you employ people from outside your family.

If you drive a private hire vehicle, you have to, by law, have a minimum level of third party liability insurance.

If you use your taxi full-time, i.e. for personal use as well, it is recommended that you take out a fully comprehensive insurance policy.

Public liability will protect you against liabilities from a third party (apart from your employees), should an injury or damage occur whilst taxiing.

Material damage insurance covers assets, such as buildings, computer equipment, stock, etc., from loss or damage, such as flood, fire, theft, etc.

Business interruption insurance will cover the loss of turnover or trading profits caused by not being able to run your normal extent of your taxi business due to damage of property.

Money insurance will cover you, in specific circumstances, for money that is lost or stolen from the premises.

Type Of Use

The type of taxis use such as Public hire or Private hire could make the taxi insurance policies different. One of the main differences between these two types is a Public hire taxi can stop in the street whereas a Private hire has to be pre-booked.

Discounts On Taxi Insurance

If you try to find the way to save your money as possible on the cost of taxi insurance as you are probably aware that taxi insurance is expensive, here are some points to consider before you pay for your taxi insurance:

Shop Around - Each insurer gives the different quote for different taxi cabs and some of them give a special discount for taxis insurance online. Keep checking their websites, however remember to compare the terms and benefits as well as the prices to get real value for your money.

Excess – The higher excess that you agree to pay in the event of all claims, the lower premium that you get. However, you should see that the higher excess makes a proper difference to the cost of premium.

No Claims Bonus – Try to drive carefully to protect you no claim bonus because it can dramatically reduce the cost of your premium. But the insurers will consider your no claim bonus in your taxi policies and your private car separately.

Security – You can save even more money on the cost of your taxi cab insurance policy by protecting your vehicle as much as possible such as storing your taxi in a secure garage overnight and by fitting safety alarm and or a tracker device. This is important if you live in the area that has high crime rate which your insurer can tell you.

Licensing - Taxis that have been licensed by the government tend to get better deals than unlicensed taxis.

It is not only a legal requirement for taxi to be insured but should an accident occurs and the driver loses his or her license they will also lose their job. While more and more insurers are now offering taxi cab insurance at competitive rates. Before you make a decision you should ensure that you are fully covered, protecting your vehicle, your job, and you.

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