How Does Taxi Fleet Insurance Work?

No matter how your taxi firm operates; whether it’s a fleet of traditional black cabs that can be hailed on the street, a taxi rank in a busy town or you work from a fixed business premises with pre-booked appointments, it is a legal requirement that you have taxi insurance when carrying passengers for payment. You may be a private individual with one taxi vehicle but if you have a fleet of two cars or more, then it will probably be beneficial to take out fleet taxi insurance.

Motor insurance for fleets of taxi vehicles is more complicated than your standard fleet sales motor insurance and this is because many more factors need to be taken into account. From considerations such as public liability to the actual ownership model of your taxi business such as whether vehicles are owned by or rented to your drivers; it is important that you ensure you have competitively-priced taxi fleet insurance that ticks all the boxes for the needs of your individual firm.

So how does taxi fleet insurance work? The main factor is that it covers all the taxi vehicles you operate under ONE policy saving time and money by reducing administration and the inconvenience involved in keeping track of different policies and different renewal dates but it also provides a mixture of the following benefits too:-

It enables a mix of vehicles to be insured

Many taxi firms operate a mix of vehicles within their fleet to cater to public demand. For example; they may run MPV’s for shorter trips when carrying a family of passengers who have been shopping in town, minibuses for large parties of people booking for airport runs or a special night out and smaller vehicles for the day to day single or return trips within a local area. Diesel or petrol engines and any shape or size; taxi fleet insurance can cover a range of vehicles (usually up to a maximum of 16 seats) so you can continue to meet the demands of your customers in a competitive market place.

It allows for driver flexibility

Taxi fleet insurance can provide cover for all your drivers whether they are working towards their taxi badge, have only got their taxi badge within the last two years or have many years of professional taxi experience. The price of insurance is reflected in the “risk” factors so costs will naturally increase with younger, more inexperienced drivers.

It covers private hire or public hire

Private hire insurance is for taxis that are pre-booked or hired from a designated taxi rank and cannot be hailed in the street.
Public hire is traditionally known as “Hackney Carriage” from the days of hiring a horse and carriage and refers to taxis that can be flagged down in the street. We may have moved on to more modern methods of transport and fleet taxi insurance offers cover for these two different types of hire.

Owner-driver or rental schemes

Taxi fleet insurance can provide cover whether your taxi firm operates on an owner-driver scheme or rents vehicles to employees. A minimum age requirement of 25 is often stipulated for the latter.

Level of cover

Comprehensive, Third Party or Third Party Fire and Theft; taxi fleet insurance offers a combination of cover for your mix of vehicle ages and conditions. Public liability insurance, employers’ liability insurance, cover for business premises and internal risks cover that insures expensive telephony and computer equipment can also be included in your fleet taxi insurance policy to cover ALL your insurance needs.