subject: Mini-cabs Require A Different Type Of Cover [print this page] Mini-cabs used as a taxi service require a different type of insurance cover than those possessed by for hire taxi services, since they do not pick up passengers from the side of the road. These type of taxis are pre-booked. This pre-booking can be done either online or by telephone so the taxi driver will always know the location and the exact amount of customers are going to be picked up.
Typically the maximum amount of passengers that mini-cabs are allowed to pick up is four. Private taxi drivers are only allowed to carry four passengers at any one time regardless of the type of vehicle that is operated.
One of the great advantages for business owners seeking minicab taxi insurance is the availability to use the Internet to do comparison shopping. In fact, there are comparison websites that allow you to search through many different providers in a single session. As a business owner, you know that time also means money and the least amount of time you need to spend doing research and self-education will save you money in the long run.
You'll find many different insurance providers are specialised in providing cover for private taxi businesses such as your minicab service. Generally speaking, private taxis will cover many more miles than public taxi services that are usually concentrated in city centres. However, consumers hiring a minicab service typically take longer trips which will add a greater amount of annual mileage to the vehicles involved.
When travelling long distances, it is important for a minicab taxi owner to obtain comprehensive insurance including breakdown cover as well as windscreen replacement whenever receiving a quote. Additionally, many insurance providers will cover the driver's costs involved in an accident as well as wage replacement if they are unable to continue working due to injuries sustained in an accident involved operating the minicab.
Once you have established your business and have met all the necessary municipal rules and regulations, you will have to obtain the correct taxi insurance before you get started. Depending upon where you operate, this may include liability cover since you have to work with the public. This will be an extra added to your basic plan.
There are a number of factors that will determine your insurance costs when you take out cover on private hire vehicles including if you have a history of insurance claims. You'll benefit from obtaining a cheaper insurance quote if your claim history is negligible.
However, if your plan of operation is working in an area that is deemed a high risk, for example in a large city or town, you may not be able to get third party only cover. Also, you will have to pay a higher premium to get cover that includes your vehicle being stolen or damaged by fire. In the event you cannot take out third party taxi insurance on its own, your premiums will be lower. But if you cause any of the damage to your own vehicle you won't be covered.
As a business owner, you know how important it is for you to understand your options. So, it's highly recommended you consult with fellow taxi owners to get an understanding of the options that may work best for you.
