What is Private Hire Taxi Insurance?
Private hire taxi insurance is a legal requirement for those operating private hire vehicles to carry passengers. You can choose your level of cover, but it can protect you, your passengers and your vehicle.
Insurance for taxis can be expensive so it’s important to compare cheap taxi insurance quotes in order to help reduce your taxi insurance cost. Your private hire vehicle is often your livelihood, so it’s vital that cover is suitable for your vehicle and its uses day-to-day.
Importance of Insurance for Taxi Drivers
As a taxi driver, having the right insurance is crucial to protect yourself, your vehicle, and your passengers. Taxi insurance provides financial protection in the event of an accident, injury, or damage to your vehicle or others. Without proper insurance, you could be held personally liable for damages, which could lead to financial ruin. Moreover, taxi insurance is mandatory for drivers who transport people commercially, whether full-time or part-time, for public or private hire. The law requires taxi drivers to have insurance, regardless of the type of vehicle or frequency of commercial driving.
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The Types of Private Hire Taxi Insurance
Taxi drivers have a variety of protection options available to them, many of which will be familiar to those who have taken out insurance policies in the past. Some options are cheaper than others but it is very important to balance cost with cover and make sure you are protected.
- Third Party Only Insurance: A third-party insurance policy will protect you in the case of any harm to a third-party or another vehicle. In the UK, it is the minimum level of insurance required for drivers. It won’t pay for any expenses related to personal injuries or car damage to your own vehicle.
- Third Party, Fire and Theft: The same coverage is provided with third party, fire, and theft taxi insurance, as well as payments for your own car should it be stolen or damaged by fire. It won’t cover expenses for collision-related repairs to your own car.
- Fully Comprehensive Private Hire Insurance: The most popular kind of insurance for private hire taxis is fully comprehensive insurance. It safeguards not just you and your own vehicle but also other people and their property. Fully comprehensive insurance typically offers the most complete protection in the case of an accident.
For businesses with multiple taxis, taxi fleet insurance is a cost-effective and manageable option. This type of insurance can cover several vehicles and drivers under a single policy, making it easier to manage and often more affordable than insuring each taxi individually.
Public Liability Insurance for Private Hire
Public liability insurance is an essential component of private hire taxi insurance. It protects against claims from members of the public who are injured while using your taxi or visiting your taxi base. This type of insurance covers the cost of defending claims and compensation for successful claims. Public liability insurance can provide cover for up to £10m, giving you peace of mind and financial security in the event of an accident. Additionally, employers’ liability insurance offers the same cover, but protects against claims from employees who work for your business.
Private hire taxis can cover a huge area, especially being pre-booked cars often chosen for longer, planned journeys. This can make policies more expensive because drivers are considered to be at higher risk with them driving regularly during unsociable hours.
Most private hire taxi policies will include some sort of public liability cover.
Suggested Addons For Your Private Hire Insurance Quote
Vehicle Eligibility for Private Hire Insurance
To be eligible for private hire insurance, your vehicle must meet certain criteria. Typically, private hire insurance providers require vehicles to be licensed by the local licensing authority and meet specific safety and maintenance standards. The vehicle must also be registered in the UK and have a valid MOT certificate. Additionally, some insurance providers may have specific requirements for vehicle age, mileage, and type. It’s essential to check with your insurance provider to ensure your vehicle meets their eligibility criteria.
Driver Eligibility for Private Hire Insurance
To be eligible for private hire insurance, you must meet certain driver eligibility criteria. Typically, insurance providers require drivers to be at least 25 years old, have a valid UK driving license, and have a minimum of 2 years’ driving experience. You must also have a valid taxi badge and meet the insurance provider’s requirements for driving history and convictions. Some insurance providers may also require drivers to complete a medical examination or provide proof of good health. It’s essential to check with your insurance provider to ensure you meet their driver eligibility criteria.
Local Authority Requirements for Private Hire
As a private hire taxi driver, you must comply with local authority requirements for licensing and regulation. These requirements vary by local authority, but typically include obtaining a taxi license, registering your vehicle, and meeting specific safety and maintenance standards. You must also comply with local authority regulations for taxi signage, metering, and fare structures. Failure to comply with local authority requirements can result in fines, penalties, and even license revocation. It’s essential to check with your local authority to ensure you meet their requirements for private hire taxi operation.
Do I Need Public Hire or Private Hire Taxi Insurance?
The type of taxi insurance you need will depend on the vehicle you drive and most often the way in which you arrange transportation with potential customers.
A private hire cab must be reserved in advance in order to pick up clients; it cannot be called on the street. Both pre-booked taxis and minicabs obtained through services like Uber or Bolt are covered under this and will need a private hire insurance policy.
A car or taxi similar to a black cab, that picks up people from taxi ranks or is flagged down on the street, would be a public hire taxi. Public hire taxis often have a taxi sign on the roof and would require a public hire taxi insurance policy. Public hire insurance is necessary for these taxis to comply with licensing requirements and covers traditional taxis, such as the iconic London black cabs.
It’s crucial to make sure your insurance policy covers your service type and, consequently, any injury to you or damage to your cab that may happen while you’re driving. If you need to file a claim, having the wrong coverage could invalidate your insurance or reduce its level of protection.
Is Insurance For A Private Hire Taxi A Legal Requirement?
If you drive a taxi or hackney carriage for a living, insurance is a legal requirement that protects not only the driver but also the public in the event of an accident.
Providing you have a taxi licence, private hire insurance is quick and easy to arrange so there is no need for an uninsured car to take any chances on the road.
Who Can Get Private Hire Insurance?
Any driver who holds a full taxi licence is eligible for a private hire taxi insurance policy. With this in mind there are some additional factors that can impact costs, these are typically similar factors to those that would impact the cost of a personal vehicle insurance policy. These factors can include age, driving experience, the type of vehicle and any previous motoring convictions.
For taxi’s especially, motoring convictions can make it more difficult to access affordable insurance policies. In unique circumstances where a driver has drunk driving convictions or has previously lost their licence, insurers may be more cautious because there is a responsibility to potential consumers that must be taken into account.
In these instances, it is worth discussing options with a specialist to see what is possible.
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