What is Taxi Insurance?
December 2, 2014
Taxi insurance is a type of policy which is designed exclusively for taxi drivers. Taxi insurance covers the taxi vehicle and both the driver and any passengers in the event of an accident.
If you are a taxi driver, it is vital that you have the right insurance set up to ensure that you are fully covered in the event of a road accident. In addition to this, it is the law that every vehicle used for hire and reward must have adequate and appropriate taxi insurance (stated in the Road Traffic Act 1988). Because taxi insurance is tailored to taxi drivers specifically, the premium is typically higher then personal car insurance.
A standard vehicle policy is not enough to cover a taxi driver for the high expenses an accident may incur.
Why does taxi insurance cost more?
Taxi insurance is more expensive than car insurance for a numerous reasons; the first being that, as the driver of the vehicle, you are liable for the safety of the passengers. Should you be involved in an incident which results in a passenger being wounded, you would be responsible for the costs should the customer decide to claim for injury – which could accumulate to thousands of pounds!
Taxi vehicles also accrue a lot of mileage and are therefore deemed as a higher risk to insurers. As a law of average, the more a vehicle is driven, the more likely it is to be involved in an accident.
Additionally, taxi drivers can do a large amount of driving at night which is also seen as hazardous due to low visibility in the dark and the increased chance of falling victim of an attack.
Taxi drivers are also vulnerable to becoming victims of theft due to the fact that they have to carry cash around with them whilst on shift. This is another reason why being a taxi driver is seen as being risky, thus making taxi insurance more expensive.
What types of taxi insurance cover are there?
There are three separate types of taxi insurance: named driver, any driver and policy only. The type of cover you wish to have will depend largely on whether or not you require other drivers to be insured to drive the taxi vehicle.
Named driver is the cheapest type of insurance which only covers you as the driver and any driver covers not only you but any other named drivers you wish to add; this is typically the highest premium.
The levels of taxi insurance are split into the same three categories as car insurance: third party only, third party fire and theft and fully comprehensive. As with car insurance, the latter is the most secure type of insurance and therefore the most costly.
What other taxi insurance may I need?
An additional type of taxi cover is taxi liability insurance which is mandatory to some licensing authorities. This type of policy insures you in the event of an accident which may happen outside the vehicle – while handling a passenger’s luggage, for example. While this type of incident may seem unlikely, accidents outside of the taxi do take place and could cost you thousands if it results in a claim.
If you own a taxi company and have a fleet of vehicles, it may be worth looking into a taxi fleet insurance policy. This type of insurance can save you the time and trouble of insuring your vehicles individually as all your fleet of vehicles would be covered under one policy.
Breakdown insurance is imperative for all drivers too, especially taxi drivers. For a one-off annual payment, taxi breakdown cover comes with road assistance and, for a small additional fee, it also covers the transportation of your passengers so that they reach their destination swiftly.
InsureTAXI is one of the UK’s leading taxi insurance brokers. Call our friendly team today on 0333 2000 094 for more information or a quick quote.