Suitable insurance is mandatory in the UK with all drivers requiring their car to be insured to cover potential damages
. It is no different for private hire taxi drivers, however as a vehicle that operates on a hire or reward basis you will need to have a specialised private hire insurance policy. Whilst the majority of insurance brokers will offer private hire insurance it is often best to contact specialist brokers who are experienced in creating policies directly for private hire taxi drivers, as they will usually have a good understanding of the cover you require and can work to the strict budget.
Operating as a private hire taxi driver involves a number of different costs, and after ensuring you have all the needed licences and a good car you will need to acquire the right insurance policy. Whilst there are three levels of private hire insurance like your standard car insurance the premiums can be higher due to the risks involved. However it is understandable that the majority of private hire drivers would not want to cut their premium costs by having less cover and there are other options than just lowering your level of cover from comprehensive to third party fire and theft.
Fortunately there are a number of benefits to operating as a private hire vehicle that needs to be pre booked than opposed to that of a public hire taxi. As all journeys and fares are recorded though the operator the risks are generally lower than that of a public taxi and you can receive lower insurance premiums for insuring your vehicle effectively. When approaching an insurance broker there are a number of considerations that should be though about to help lower your premiums.
Who will be insured on your private hire vehicle? If you are just insuring yourself as a single driver you can save hundreds of pounds compared to have any driver or named drivers insurance. If you can commit to paying your insurance premiums annually opposed to monthly you will also be able to make a small saving.
Asking for a tailored policy can reduce the cost as it ensures that you are not paying for any extra cover that you do not require. Some brokers may insure you for extras as part of your policy however if you do not require them try and use them as a bargaining tool to get a lower premium. Not all insurers are willing to do this so sometime it may be suitable to pick policies that offer small added benefits in the case of a claim.
This could include a replacement car if yours has been damaged and needs repair, or even a complete claims management service so you know you can make a claim quickly if you need to.
Whilst each option will not reduce your insurance premium dramatically all the small savings can be added together to create a much larger saving overall.