Is taxi insurance necessary?
In a word - yes. Any type of motor vehicle is required to be taxed and insured in order for it be road legal in the UK. Insurance is especially important when you drive a taxi for a living since you’re transporting members of the public. This means you not only have to think about road risks but also the risk of liability claims.
Sometimes new taxi drivers mistakenly believe that regular car insurance with business cover will be enough but this is not the case. You must get specialist taxi insurance. Failure to get proper insurance for your taxi could easily result in you losing your job, having points put on your licence or losing your licence altogether.
What type of taxis can be insured?
All types of taxis can be insured, including black cabs, minicabs, private hire, pubic hire, minibuses, MPVs etc.
What about limousines?
Limousines can also be covered although it’s usually best to get cover from a specialist limousine insurance provider. This is because limousines, especially classic and custom models, often don’t have a set market value and therefore getting an agreed valuation policy is the best way to go.
What are the best ways to save money?
There are several ways you can save money on taxi insurance. One way is to pay for your policy on an annual basis, rather than monthly. This is an excellent way to cut down on the cost of your premium since you’ll be able to negotiate a lower rate. Another way to save money is by increasing the amount of excess you pay. Excess is simply the amount you would pay upfront if you had to make a claim. If you have multiple taxis to insure then getting a fleet policy is another great ways to save money.
One of the best and most reliable ways to save money on taxi insurance is by getting quotes from multiple providers.
Can I insure multiple taxis on one policy?
Yes. This is where fleet insurance comes in. With a taxi fleet insurance policy you can insure multiple taxis of different types all under one easy-to-manage policy. Fleet insurance is an ideal solution for taxi firm operators since it not only makes it much easier to manage the admin side of things but fleet insurance usually works out cheaper when compared to insuring taxis individually.
What type of cover can I get?
When you take out a taxi insurance policy, you can get any type of cover you require. Common types of taxi insurance include third party, third party fire & theft, fully comprehensive, public liability. You can also get additional types of cover such as windscreen & glass repair and breakdown assistance. Taxi insurance policies are typically very highly tailored so you can get the exact type of cover you require.
Is public liability insurance a requirement?
You are not legally obligated to get public liability insurance if you’re a taxi driver but it’s highly recommended. If you were involved in a collision where a member of the public or one of your own passengers were injured or killed, then you could very easily find yourself facing a liability claim. This could be potentially devastating if you didn’t have public liability cover in place.
Will my age affect the cost of a taxi insurance policy?
Yes unfortunately age does affect the cost of taxi insurance. Taxi insurance providers base the cost of their policies on how likely a person is to make a claim. Younger, more inexperienced drivers are statistically more likely to be involved in collisions and therefore can expect to pay more for insurance. For this reason a lot of insurers are reluctant to offer drivers under the age of 25 a policy.
What is the difference between public hire and private hire insurance?
Public hire taxis such as black cabs are typically more expensive to insure when compared to private hire minicabs. This is because they can be hailed off the street and therefore drivers face greater risk from drunk/belligerent passengers. Private hire taxis can only be pre-booked via a minicab office and cannot display a ‘taxi’ sign like public hire taxis.
Can I get cover for my premises?
Yes - if you want to protect your taxi office then you’re able to get a combined policy that will provide cover for theft and structural damage. A combined policy is an excellent choice for taxi firm operators since you can insure your vehicles and premises together.
How many passengers can I carry legally?
This is determined by the law and will depend on the type of vehicle you drive. It’s extremely important for you to be aware of how many passengers you’re allowed to safely and legally carry in your vehicle since carrying over this limit means your breaking the law and your insurance will be invalid in the event of a collision.
Does taxi insurance cost more than regular car insurance?
Yes typically taxi insurance does cost more than car insurance. This is because a taxi insurance policy usually includes more cover and also because taxi drivers are usually more likely to be involved in an accident simply because of the number of hours they spend on the road each day. With a taxi insurance policy, public liability insurance must be included to provide protection against any liability claims that might come from passengers or members of the public.
Can I insure my taxi for personal use?
It’s usually possible to have personal use included in your taxi insurance policy but it doesn’t always come as standard so you should be sure to request this type of cover when taking out a policy.
Can I add family members to my taxi insurance policy?
This may be possible but it’s not always permitted to allow non-taxi drivers to drive registered taxis so you should check with your local authority first.
Can I get short term cover?
Taxi insurance is typically taken out on an annual basis. However more short-term policies may be available on request.