You will need private hire taxi insurance to safeguard both you and your company if you are considering taking up private hire taxi driving as a full-time job or even just part-time to earn some extra money.
You must abide by a number of rules and regulations if you want to work in the private hire taxi industry. It is crucial to get everything right before you start out because failing to follow the correct rules could get you into trouble with your local government, which could result in penalties and possibly a temporary suspension of your taxi license.
Why Do I Need Insurance for a Private Hire Taxi?
Unlike regular auto insurance, private hire vehicle (PHV) insurance is intended to do more than just keep you safe. Unlike regular auto insurance, private hire vehicle (PHV) coverage is intended to protect you, your cab, your passengers, and any goods or luggage you may be carrying as well.
You will confront a lot more difficulties on the road as a private hire driver than the typical motorist. To begin with, you will be driving for longer periods of time, frequently through congested cities or airport runs, putting you at an increased risk of collisions. Your choice of vehicle, especially if it’s an MPV or minibus where you’ll have extra people and luggage, could pose additional risks.
Along with protecting you, your vehicle, your passengers, and their possessions, there are additional taxi insurance policies as well. There are certain other insurance extras to take into account when establishing your business, in addition to coverage for you, your car, passengers, and their luggage. Make sure you consult with an expert insurance broker who can explain exactly what you need and what can be added later before taking up any add-ons, especially if money is limited initially.
What Kind of Insurance Do I Need for a Taxi?
Private hire taxi insurance and public hire taxi insurance are the two primary varieties.
The distinction between the two is that a public hire taxi, such as a London black cab or a hackney carriage, can be called by passengers on the street. There is no need for advance reservations, and the vehicles or MPVs can show taxi signs. This kind of insurance is designed to protect you if you need to pick up customers on the street or at taxi stands without their prior arrangement.
You are covered by private hire taxi insurance for prearranged trips in automobiles and people carriers that can hold a maximum of eight passengers. Bookings must typically be made using a link to radio control, and no one can be picked up from the street or taxi ranks.
The flexibility of being able to pick how frequently you want to work, how far you want to go, and whether you want to work late evenings or weekends is one of the advantages of driving for a private hire company.
However, in the long term, this will be more profitable for your company. Taxi driving is probably not the best line of work for you if you want to avoid unsociable hours.
Options for Private Hire taxi Insurance
There are specific areas ofa that, like other motor insurance, must be covered by the law. Additional choices may provide further versatility. If you work as a cab driver, you will need the assistance of knowledgeable taxi insurance brokers, like Protect My Taxi, to determine the appropriate level of coverage for your requirements.
The main choices are as follows:
Third-party coverage:
As a taxi driver, this is the bare minimum insurance coverage you are required to have by law. Third-party insurance is typically not advised because it may have limited coverage, especially for you and your car. You would only be insured for third-party liabilities, which would cover any harm done to another person’s property or vehicle as well as any injuries or fatalities to third parties if your car were to be involved in an accident that was determined to be your fault. However, neither you nor your taxi would be covered; only your passengers would. If you were hurt in the collision and unable to work, or if your automobile was taken off the road for an extended length of time, this would be quite expensive.
Third-party fire and theft:
If your taxi were to be damaged by fire or stolen, this would provide you with both the above-mentioned protection and insurance. To know more about it od ideas
Fully comprehensive:
If you own a taxi business, getting the highest level of protection is advised. Along with the above-specified coverage, you will also be covered should you sustain injuries and for any damage to your cab resulting from a traffic accident, regardless of responsibility. You may rest easy knowing that you and your company are fully comprehensively covered against any traffic accidents.
