Making People Happy
A Guide to Taxi Insurance
What You Need to Know
When you drive a taxi for a living, you have a lot of responsibility. You have to think of the safety of your passengers, other road users and of course, yourself. Of course even the safest of drivers is not going to be able to eliminate all risk and for this reason it’s vital to get a good insurance policy in place. There are many insurance providers who offer taxi insurance in the UK. However before you start looking for a policy it’s important to be aware of the different types of cover that are available.
The ideal is to get the most comprehensive cover available but of course this is not always feasible. When taking out a policy you must strike a balance between your budget and the level of cover you want. One of the best ways to ensure that you get the right policy at the right price is to shop around. The internet has made it infinitely easier when it comes to getting insurance quotes so you should certainly take advantage of this.
Since there is more than one type of taxi, it’s important to understand the different types of cover that are available and which are best suited to your needs. Below are some of the most common types of cover found in a taxi insurance policy.
Types of Cover
- Fleet Insurance - Whilst many taxi firms now employ owner drivers who take care of their own insurance, there are still firms who prefer to insure all their cabs themselves. In this case fleet insurance is an ideal solution. With fleet insurance you’re able to cover as many cabs as you need under one policy. This obviously makes dealing with paperwork a lot easier but more importantly it also reduces the cost quite significantly
- Public Liability
- Legal Fees – Being on the end of a compensation claim can be very costly, not only if the claim goes against you but also fighting it. Solicitor’s fees can soon add up and become prohibitively expensive for many people so having legal fees included in your policy is never a bad idea.
- Comprehensive Cover - This is really a must for any taxi driver. Whilst there are third party only policies available, it’s not recommended since taxi drivers spend so many hours on the road, greatly increasing the chance of being involved in a collision.
- Breakdown Assistance - This is absolutely essential for a taxi driver. Since you’re relying on your cab as a means of income, any time that you’re not able to drive is money lose. Some insurance providers will give you option of a replacement vehicle in case your cab needs extensive repairs which is an extremely useful option to have.
- Loss of Licence - If you lost your licence for a period of time this could be financially devastating. By getting loss of licence cover included in your policy you can be sure that you’ll be compensated for an agreed period of time should this happen.
- Personal Injury - Driving a cab can be a very dangerous profession. Whilst most passengers are reasonable and will not cause any problems, there is always the chance that you will get a belligerent passenger in your cab. If you were to become injured as a result of this, personal injury cover will compensate you.
Black Cab Insurance
Black cabs are a very common site in UK cities. They are however quite expensive to run, especially when taking into account the licences you must have to drive these cabs. Most larger insurance providers will offer black cab insurance but because it’s usually more expensive than other types of taxi insurance, it’s important to shop around and get the price as low as possible.
All the usual insurance options are available for black cabs such as third party, fire and theft, fully comprehensive, public liability, breakdown assistance etc.
Private Hire Insurance
Private hire insurance is one of the two main categories of taxi insurance available, the other being public hire insurance. Private hire taxis can only be pre-booked and cannot pick up passengers from the street. They also cannot display a ‘taxi’ sign like public hire taxis. Because they are only able to be pre-booked, this means that they are at less risk and therefore private hire taxis are usually cheaper to insure.
Public Hire Insurance
Public hire taxis, as the name suggests, are able to be pre-booked or hailed off the street. Because they are able to be hailed from the street however, does mean that driving a public hire taxi comes with greater risks. For example the taxis that pick up late night revellers are public hire taxis and the risks that come with transporting inebriated passengers are obvious. This means that public hire insurance is usually more expensive than private hire insurance. However this doesn’t mean that you cannot get the level of cover you want at a price you can afford. As always, getting multiple quotes is the best way to go and will certainly ensure that you save money.
How Price is Determined
It’s always a good idea to know how price is calculated by insurance providers. This way you can look at what factors you can change in an effort to save money. Below are some of the main factors that are taken into consideration by insurance providers when calculating the price of a policy –
- Driver’s Age, Experience and Driving History – This is one of the biggest factors that will be taken into account when price is being calculated. A younger driver with less experience is certainly going to pay more for a policy than a more experienced. Whilst it might seem unfair, this is purely because the younger driver is statistically more likely to be involved in an accident. If you have a good amount of driving experience, are over 25 years of age and have a clean licence, you should have no problem finding an insurance policy at a reasonable price.
- Value of the Vehicle - The value of the vehicle being insured is another big factor that insurance providers look at. The general rule is that the more expensive the vehicle, the more expensive it’s going to be to insure. For this reason most taxi drivers will opt for a vehicle that is practical rather than showy.
- Number of Vehicles Being Insured - If you own a fleet of taxis that need to be insured then the number of taxis in the fleet is of course going to impact the cost. Other factors such as the drivers being insured and the individual values of the taxis in the fleet will of course be taken into consideration as well.
- Level of Cover – Lastly is the level of cover being sought. Whilst it’s always desirable to have the highest level of coverage possible, the budget you have will have to factor in. There are many useful options to have included in a policy such as breakdown cover, legal fees and loss of licence however these options will increase the cost of the policy. Comprehensive cover should always be taken out as a minimum and then you can budget for any additional types of cover after that.
Getting The Best Deal
Everyone wants to save money when it comes time to get insurance and luckily there are some very reliable ways to do this. Below are some of the best ways to save money on your taxi insurance –
- Shop Around – This is probably the number one way to save money on a taxi insurance policy, or any type of policy for that matter. Since the prices you’re quoted by insurance providers can vary so much, the only real way of knowing whether you’re getting a good deal on your insurance is to compare quotes from different providers against each other. Luckily getting multiple quotes is now easier than ever. In fact by clicking the red button on this page you can get quotes from some of the top taxi insurance specialists in the country.
- Pay Annually – This is a very good way to save money on your policy. Insurance providers of course prefer that you pay for your policy all at once rather than monthly and will therefore offer you a significant discount for doing this. Whilst it might not be affordable for everyone, whenever you’re able to do this you should. It’s also a good idea to try and negotiate as much of a discount as you can to drive the price lower still.
- Secure Your Vehicle - One of the things that insurance providers will look at when deciding on the cost of your policy is how secure your vehicle is. You should have an alarm and central locking at the very least. Extra security such as a steering wheel lock and immobiliser will only help in reducing the cost of your policy.
- Fleet Insurance - Of course this only applies to taxi firm operators who have multiple vehicles to insure but it is strongly recommended that if you do have more than one cab to insurance that you do it with a fleet policy.
Get Quotes Easily
At one time, getting multiple quotes would have meant calling different insurance providers individually and haggling to get the best price with each. This of course if far from ideal and is very time-consuming. Now it’s infinitely easier to get the quotes you need. In fact it’s as simple as clicking a button.
If you want to get multiple quotes from a panel of taxi insurance specialists then it’s only a few clicks away. When you click the button below and provide some information about yourself and your insurance needs, you’ll then have access to highly-tailored quotes to choose from. This takes all the legwork out of finding quotes and allows you to spend time on more important things. So simply click the button below to get started now and you could save a great deal of money on your policy.