Choosing The Best Private Hire Taxi Insurance

Private hire taxis are common in most UK cities and towns

. These taxis work from a depot or a centralised area rather than drive around the streets picking and dropping customers.

Clients call for the taxis from their lot to pick and drop them at prearranged locations after which they return to their base station, typically without picking up any passengers on the way unless it is another private client.

For these taxis, private hire taxi insurance is required by law, much as any other vehicle insurance is. Whether run individually or through cab companies, most of these taxis use insurance companies that specialise in car hire and public vehicle services. This niche specialisation is a way of reducing the overall insurance cost for both the taxicab and the company. Private taxis have lately become very popular, since the service offered is more centric and specific.

In the event of a claim involving a private hire cab, the initial excess is the responsibility of the owner of the cab. There are also stringent regulations on who can drive the taxi and it is therefore important for taxi owners to ensure that their drivers are authorised by the law to drive private hire taxis. Insurance companies that provide cover to private hire cabs, cover proposers only and not partners or spouses. They are on full cover regardless whether the vehicle is for business or personal use. They also must not carry un-designated passengers. You also need to talk with your insurer to determine under what circumstances it would be considered illegal or a violation of the insurance contract for another person to drive the cab.

The insurance costs for a private taxi are higher than those of a conventional vehicle are, especially when the comprehensive cover is taken into consideration. Compare the terms and rates offered by different insurance companies before selecting your preferred insurer. Make sure you understand all the intricate details on things like windscreen covers, driver restrictions and excess amounts payable in the event of a claim. Read and understand the small print details before making your policy commitment.

It is advisable to get legal protection in addition to the taxi insurance policy. Legal protection covers court representation and legal advice in case of an accident. Insurance companies dread litigation claims and acquiring legal protection is always a good idea in this business. Also, consider obtaining a breakdown insurance cover. This will make it easier for you to get back on the road faster after an accident.

Insurance companies usually charge higher insurance premiums for drivers below 25 years old. The same applies for drivers with a poor driving record. To reduce your private hire taxi insurance costs, ensure that your driver has a clean driving record and is at least 25 years old. Your insurance costs are likely to drop by about 20%. Laws governing the private hire taxi insurance are strict and you need to be keen to operate successfully in this business.

by: Tom Jones

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