Every vehicle that is driving on the roads of the United Kingdom needs to have insurance. It is the law, so by driving without the correct cover is illegal and can land you in a lot of trouble. There are many different kinds of insurance options available for Taxi and Uber drivers, so you need to make sure you have the right coverage for you needs.
According to the 2018 Department for Transport statistics, there were a record number of taxis on our roads, with 285,400 registered vehicles. With so many taxi and Uber drivers on the road, then it is simply a law of averages that there will be a high number of accidents involving these riders every year.
So if you are a taxi driver operating within the United Kingdom, it is vital you have the relevant insurance designed specifically for you.
What is taxi insurance?
In simple terms, taxi insurance is a specialist vehicle insurance policy that is specifically designed to cover vehicles that are being used for commercial hire. If you are already a taxi or Uber driver, then you might think that your standard personal insurance policy will cover you as it has ‘business insurance’ however this does not refer to your taxi.
Because you will be transporting people and their belongings, you need a more in-depth policy that will cover this and protect you, your vehicle and your passengers. It is also a legal requirement that any taxi or Uber driver has the right professional insurance.
Why do you need taxi insurance?
There are lots of reasons why you require specialist taxi insurance if you are a taxi or Uber driver, not least because it is a legal requirement. Whether you are working for public hire, private hire or operating a minibus; without full cover you could open yourself up to a huge amount of problems.
If you risk driving and picking up passengers with your standard car insurance, then should an accident occur you will have completely invalidated your cover; meaning you will be liable to pay all costs. Not only that, but you will be breaking the law and if you are caught without the correct policy in place you will not only lose your licence but face a hefty fine and even a possible jail term.
By ensuring you have the right taxi insurance in place, you will be able to make sure that you are covered no matter what might happen. Whilst the initial cost might seem off-putting, it is worth it when you realise how much income you would be losing if you were without your vehicle for any period of time.
Selecting the right taxi insurance does not just protect you, but it also protects your passengers too. Should an accident occur without you being fully insured, you could face civil and even criminal court cases where you could be found liable for the injury.
What kind of insurance is available?
Depending on what vehicle you are driving, there are a number of different forms of insurance for taxi and Uber drivers. In order to choose the right policy you will need to identify which type of driver that you are:
These are ones that can be hailed down on the street and do not need to be pre-booked and means you are required to display a taxi sign. If this is how you operate then you will need to ensure you have public hire taxi insurance to cover all eventualities.
A private hire taxi is one that has to be pre-booked in advance and typically this covers most types of taxi drivers – including those driving larger vehicles such as minibuses. Private hire insurance does not cover you for any customers who are picked up without a booking (from places like taxi ranks or train stations).
The digital age has brought with it a new way of passengers hailing taxis and in major cities, Uber and other apps such as Kapten are the go-to solutions for many people. If you operate for any of these companies, then you will need the relevant cover in place.
Whilst these three definitions cover most types of the taxi driver, there are also other insurance options available to you to cover all eventualities. These include:
Hire & Reward
This policy helps to cover both taxi and Uber drivers. It is also a requirement if you use the vehicle for other business such as ride-sharing, food delivery or transport guests to a wedding.
This helps to cover you for any gaps in the costs of a new vehicle if your existing car is written off or stolen; ensuring you will not be paying for a car you no longer own or operate.
This is a policy that is specifically designed to cover those who operate more than one vehicle. Fleet Insurance allows you as the owner to save money by covering every vehicle in operation at your company under one single policy. In a similar vein, you can also operate an all-driver policy too.
Loss of earnings
This type of policy will cover you if you are unable to work; for example, if your vehicle is written off or you are injured.
Alongside these, taxi and Uber drivers should also take out Public Liability Insurance to protect themselves against a customer suffering personal injury or property damage and Personal Injury Cover which will cover you should you be unable to return to work after an accident.
What level of cover should you choose?
Just like standard car insurance, taxi and Uber insurance offers three different levels of coverage, Third Party, Third Party Fire and Theft and Fully Comprehensive.
These will vary in price and the level protection, with Third-Party being the minimum level required to drive in the UK and only covering damage to other people and their property, Third Party Fire and Theft also covering loss or damage from fire or theft and Fully Comprehensive offering complete coverage.
How much should a Taxi or Uber insurance cost?
The costs for Taxi or Uber insurance will vary depending on the policies you are taking out, the level of coverage you opt for, your vehicle and your experience. With so many different factors, there is no set price or guide but it is important you opt for a reputable and reliable insurance provider.
A dedicated taxi or Uber insurance provider will often be able to provide a dedicated and tailored policy, often at a lower premium than non-specialists. Here at QuoteRadar, we specialise in helping you to find the cheapest insurance quotes from a host of UK insurers in a smooth and hassle-free manner. Get in touch with us today to find out more!
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