A 2010 audit revealed that, in some parts of the country, 90% of taxis were not correctly insured, potentially voiding the insurance claims of injured passengers and
other drivers involved in accidents, and heightening the probability of taxi
drivers facing a loss of earnings if it was off the road.
While the National Private Hire Association dismissed the report as unrepresentative, an
incident in Sheffield earlier in the year suggested the problem was very real. Fifty taxi drivers were discovered to be plying their trade without the correct policies and the companies they worked for stopped offering them jobs until
they had remedied the situation.
Investing in taxi insurance is an essential part of running a taxi business. In fact it is a
legal requirement. Read on for more information.
What is taxi insurance?
Taxi insurance is really like a car insurance policy specifically set up to give taxi owners
the strongest cover possible. There are many variations grouped under the taxi
insurance umbrella that drivers can choose from. If you get your taxi insurance quote online, you can quickly see the effect of changing your requirements on the overall cost of your policy. It is compulsory to have third party insurance.
Private Hire Insurance and Public Hire Insurance
The kind of taxi driver you are or the type of taxi company you run will have a big impact on the type of policy you choose. If you only deal with customers who book your
service then you need a private hire insurance policy. This will tend to be cheaper than public hire insurance, which is needed by drivers of Hackney Carriages. Public hire insurance covers black cabs which can pick up passengers on the street as well as take appointments and because insurers view public hire as slightly riskier, it costs more.
Single and Multiple Vehicle Insurances
A single vehicle insurance policy is typically available to drivers between 21 and 70 who
operate a single vehicle as a private or public-hire taxi. Three types of cover are offered: third party, third party fire and theft and comprehensive.
Things get a bit more complicated if you need to insure multiple taxis. Fleet insurance policies require you to give examples of your individual drivers’ experience and claims
history. This is further complicated if you have different drivers using the
same car on a shift basis. The same three types of cover are provided. If you run a rural private hire taxi firm, keep your eyes peeled for rural policies.
What is covered?
As mentioned above, policies split into three types: third party, third party fire and theft
and comprehensive. Third party is the most basic, protecting pedestrians,
passengers and other drivers but not the policy holder. Third party fire and
theft adds protection against vehicles catching fire or being stolen. Comprehensive cover adds protection against accidental damage and windscreen
damage.