If you drive a taxi, you’ve probably got some crazy tales to share about your customers and your experiences on the road. Since driving a taxi comes with its own set of unique risks, it should come as no surprise that you require taxi insurance in addition to standard vehicle insurance. Quote Radar is the best place for that.
Taxi services continue to thrive, despite competition from ridesharing apps like Uber and Lyft. The market is expected to expand further. There will be more cabs, more people using taxis, and increased potential for mishaps as a result.
You must get taxi car insurance if you operate a taxi service. Taxi insurance is a separate policy from standard car insurance that is required if you run a taxi business. In the event of an accident, a taxi driver may incur significant costs that are not covered by basic car coverage.
The Difference Between Taxi Insurance and Car Insurance:
The coverages offered by each insurance are what set them apart. Claims resulting from accidents are covered by car insurance. It does not protect against allegations that are not specific to the company’s actions.
In the event of an accident, the driver, passengers, and onlookers are all protected by the taxi’s insurance policy. Taxi insurance premiums are often higher than auto insurance rates because of this.
Theft, vandalism, fire, and company-driver-caused collisions are all protected by taxi insurance. Coverage for business interruption is available as an optional add-on. This will keep the business afloat until it can resume taxi service.
Taxi services may need to get a surety bond in certain areas. You should also consider getting them workers’ compensation insurance in case any of your drivers are hurt while they’re on the clock. Both taxi and car insurance should be in place for your business.
What does Taxi Insurance Cover that Car Insurance doesn’t?
Simply put, standard car insurance coverage will not protect you, your taxi, and your customers if you operate as a taxi driver. If you drive for hire, you must have proper taxi insurance coverage in place.
In the United Kingdom, motorists are required to have at least third-party liability insurance to legally operate a motor vehicle on public highways. The next level of coverage up, third party, fire and theft, protect your car against damage caused by fire and theft in addition to third-party liability.
The greatest level of insurance protection, known as “comprehensive,” will pay for repairs to your car or yourself in the event of an accident, regardless of who was at fault. Taxi Insurance, although offering the same three levels of coverage as standard Car Insurance, differs in that it safeguards you against the following risks:
- The more miles you put on your car, the more people you’ll have to interact with and be responsible for.
- Having to travel at hectic times with plenty of traffic.
- Having to do overnight or early morning driving.
- Below, we’ll go into further depth as to whether you need Public Hire Insurance or Private Hire Insurance.
What’s the Difference Between Public Hire Taxi Insurance and Private Hire Taxi Insurance?
The primary difference between Public Hire Insurance and Private Hire Insurance is that the former allows for on-the-spot passenger pickup while the latter requires previous reservations and does not allow hailed pickups.
Public taxis, commonly known as black cabs or hackney carriages, may wait at a taxi rank for customers. Insurance for public taxis may cost a little more than for private ones since these cars tend to be brand new.
Why is Taxi Insurance More Expensive than Car Insurance?
Taxi insurance is often more expensive than car insurance since taxi drivers log more kilometres on the road than the average driver. Taxi drivers often have bigger cars, placing them in a riskier insurance bracket, and they log more kilometres each year.
The typical driver travels fewer miles per year than a taxi driver. Cabbies often face difficult road conditions, especially in congested urban regions. Larger cars are more costly to insure, but taxi drivers need them so they can transport more customers at once. Taxi drivers also risk having passengers file personal injury claims against them.
Do Taxi Drivers Need Public Liability Insurance?
Public Liability Insurance, often known as Taxi Liability Insurance, safeguards you and your company if a passenger suffers bodily harm or property damage while in your care. The hazards you face as a taxi driver make this protection very useful.
Whether passengers are under your care, including whether they are entering, travelling inside, or exiting the taxi, you are responsible for their safety and the safety of their belongings at all times. If necessary, your taxi premises may also be covered by taxi liability insurance.
How to Reduce Your Taxi Insurance Premium:
Everyone wants to pay less for insurance, and there are steps you can take to lower your taxi insurance prices.
Choosing a lower insurance category car – Pay attention to the insurance category your prospective car resides in. The insurance premium you pay will increase proportionally with the car’s insurance group. However, you should consider the quality of service provided with price while making your decision.
Avoid accidents by always exercising due care behind the wheel. You may earn a no-claims bonus by being accident-free on the road for a prolonged period. Insurers often reward safe drivers with significant savings if they have never filed a claim.
Acquire plenty of hours behind the wheel. Insurance companies often provide discounts to drivers who have had their taxi badges for a long time. These benefits aren’t achieved quickly, but rather via a long history of safe driving over many years.
Shop around – Don’t simply settle for the first quote you receive. It doesn’t take long to compare different policies and premiums, so it’s worth your time to shop around for insurance.