What is taxi insurance?
Taxi insurance is a specialist insurance policy design to cover taxis used for commercial use. If you are working as a taxi driver, normal car insurance will not be enough to cover you.
However, taxi insurance will cover you and your vehicle as well as your clients. It is important whether you drive a black cab, public hire, or private hire.
What is the difference between taxi insurance and regular insurance?
If you are working as a taxi driver, a standard car insurance policy will not be enough to cover you, your clients, and your car. You will need a particular taxi insurance policy depending on what kind of taxi you drive, either private hire or public hire taxi.
If you run a taxi business containing a fleet of cabs, it can be time-taking and costly to take out and renew individual policies for each of your taxis which is why taxi fleet insurance is often the ideal option.
We will cover everything from different kinds of policies to how to bring your taxi insurance premiums down. As expert taxi insurance brokers, we understand that having the right insurance policy is one of the most important reviews for your business and you. Here is all you need to know ahead of going through the procedure of taking out taxi insurance.
Why normal car insurance will not cover you?
It is good to think that your normal car insurance will cover you if you want to use your vehicle as a taxi, but the policy’s fine print will make it simple that it won’t.
There are some reasons why it will not cover you. You are likely to be doing far more miles than you would ordinarily. So the risk associated with the insurer is also greater which is reflected in the insurance premiums. In addition, you will be carrying passengers in your taxi who will also require to be accounted for in your insurance policy.
Getting caught without the right cover can mean you lose your insurance and have to pay fines as you will be considered not insured. Ultimately, this will impact your living, as it could mean a time out of work. Contact an insurance expert who can find you particular taxi insurance for commercial use and, in certain, insurance that covers you when taking passengers.
Public hire vs private hire insurance
Your insurance policy will be dictate by whether you drive a public hire taxi or a private hire taxi.
Public hire taxis also known as Hackney carriages can be hail from the street or can wait in a taxi rank for passengers, which means you can find fares rather simply and you can pick and select what hours you work.
Private hire vehicles should be pre-booked by clients. That is why, you only drive when you have a fair, which might mean less flexibility as you cannot afford to select what hours you operate.
These two categories carry various levels of work which will be factored into your insurance premiums along with your location, age, and yearly mileage.
Why taxi insurance is expensive?
Speaking of insurance premiums now is a good time to discuss why taxi insurance seems like a costly price. It should not come as a major surprise if you end up paying more in insurance premiums to insure your taxi than normal car insurance. When a car is being used for business goals. The cost of insuring it is higher than if the car is only used for commuting or socially. You might not agree, but taxi drivers present more risks. A taxi is likely to spend much time in urban locations where accidents are more likely to happen, for example, but even if you are not a city resident, you could find yourself having to pay higher insurance premiums than you would like because:
- You will drive more each year
- You will carry more passengers which will increase the risk of personal injury claims
- A few taxi cabs are larger than average cars, so will sit on a higher insurance ladder
What is the cost of taxi insurance?
You might not agree, but taxi drivers present more risks. A taxi is likely to spend much time in urban locations where accidents are more likely to happen. For example, but even if you are not a city resident. You could find yourself having to pay higher insurance premiums than Taxi insurance is generally more expensive than normal cover because:
- You will cover more distance each year
- You will carry more passengers which will increase the risk of personal injury claims
- As you know, taxi cabs are bigger than average cars, so they will sit in a higher insurance group
- Taxis often operate during busy hours and drive in heavy traffic frequently
Who can get taxi insurance?
Many taxi insurance providers will provide cover if you:
- Have held a valid driving license for a minimum of 12 months
- Aged over 21, but some specify you should be at least 25 years old
- Have a proper taxi license
How can you reduce your taxi insurance premiums?
If you want cheaper insurance premiums, here are a few important things you can do to cut down the cost:
Select a vehicle from a lower insurance set
When selecting your vehicle, it is important to pay attention to which insurance group it falls in. the higher the vehicle’s insurance group. The more you will have to pay in insurance. But, it might not make a lot of sense to go with the cheapest option. You have to weigh that up against your level of service.
Drive carefully
It might be a simple answer, but it really works. If you drive carefully without any accidents, you will build up a no-claims bonus over different years. Many insurance brokers will provide considerable discounts to drivers who never made a claim.
Get handful experience
Insurance brokers offer cheaper insurance premiums to those who have held their taxi badges for quite some time. It is important to build up years of secure and safe driving to gain these rewards. They can’t be earn overnight.
Shop Around
Don’t just go for the first insurance quote you receive. It takes a little effort to shop around, weighing up the cost of the insurance against the advantages included in the policy. It takes a little effort to shop around, weighing up the cost of the insurance against the advantages included in the policy.
While insurance premiums are likely to be higher than standard cover, it does not have to break the cost particularly if you use a taxi insurance expert like protect my taxi to help you find taxi insurance online.
Get a taxi insurance quote
Our experienced team can arrange cover for a large range of taxis and vehicles including Black cabs and MVPs for both public hire and private hire.
At protect my taxi, we try our level best to provide you with a good deal. We will search our panel of insurance brokers to get you our suitable price for your taxi insurance needs.
To arrange a taxi insurance quote, contact us right now and we will provide you cover to help you.
