If you transport people in a vehicle for commercial reasons then the law requires that you have a licence and appropriate insurance. This applies whether you drive a hackney carriage or a private hire car.
Types of taxi insurance
The types of taxi insurance available are consistent with other vehicle insurance policies, meaning that you can go for the top level of cover with a fully comprehensive policy, opt for a third party fire and theft policy, or go for the lowest cover level with a third party only choice.
Private hire insurance will offer cover if you drive a vehicle that customers have to pre-book and cannot be hailed by clients in the street. In contrast, insurance for public hire taxis will cover vehicles and drivers that can be pre-booked or stopped in the street. These are often company-owned vehicles.
What should your taxi insurance policy cover?
Your insurance should be appropriate for the number of miles you drive, as well as the conditions in which you may have to work. It will also take into account contact with passengers who may be drunk or unruly. You should also have public liability insurance cover, which may be included in your taxi insurance. This will offer you cover if you face compensation or legal claims as a result of injury to a person or property.
The cost of taxi insurance
Insurance premiums for taxis are more expensive than they are for a standard car. The main reason for this is that you drive more miles than an average motorist and are, therefore, statistically more likely to be involved in an accident. Other reasons may include the fact that you have to drive in congested conditions and you may also have a larger vehicle in order to fit in as many passengers as possible.
Lower the price of your taxi insurance
Whilst you will have to pay more for insurance for a taxi than for standard car insurance, there are things that you can do to keep the price as low as possible. These include:
Choosing the right car.
Picking a vehicle that is in one of the lower insurance groups can make a big difference when it comes to outgoings on insurance premiums. There are 50 different car insurance groups and so there should be plenty of choice when it comes to choosing the right option for you. Of course, you will also have to consider other factors as well, such as fuel consumption and the number of passengers and their belongings that you want to be able to carry.