Taxi Insurance Buying
The taxi service system in the UK can be confusing, but the taxi
insurance system is even more complex. There are about as many Hire and
Reward insurance schemes available as there are types of taxi services
in the UK. However, following the steps in this
purchasing guide may make buying your policy at least a little
easier to do.
Step one: Conduct budget and risk evaluations
Purchasing the right amount of cover is just as
essential as buying the right type. It is very easy to become over and
under insured simultaneously. So itís vital to know exactly what your
requirements are and what they may be in the near future. You canít
adequately protect yourself, your employees, your vehicles, and your
passengers, if you have no idea of what risks need to be addressed.
Things to you should take into consideration are:
∑ The value of your vehicles, including the cost of operating,
maintaining, and replacing them in case of theft, fire, or accidental
∑ Security issues, such as theft, vandalism, or someone committing an
assault on you, your employee, or your passenger
∑ Possible cost of legal and medical fees if any claims are made against
you or any of your employees for any reason- Can you comfortably meet
the cost of the claim by using the money you have saved up?
∑ The penalties for operating without proper taxi insurance and
∑ Are there any ways to reduce or eliminate any of the risks?
∑ Are any of the risks covered by other types of insurance you currently
Step Two: Select the right type
The type of vehicle you drive, where you ply your trade, and what type
of service you offer makes a huge difference in which insurance scheme
is best for you. To choose the right coverage, itís vital to determine
which primary and subcategory best describes your specific type of Hire
and Reward service. Each subcategory comes with its own unique set of
risks, requirements, and regulations.
The two primary types of taxi insurance are Private Hire and Public
Hire. Private Hire is for the taxi drivers who are only licensed for
carrying passengers on a pre-arranged basis which are booked through
licensed operators. Public Hire is for black cab and hackney/carriage
drivers who are licensed to pick up passengers without any prior
arrangements. The subcategories mostly belong to the Private Hire
category. These insurance schemes usually belong to Private Hire:
∑ Corporate Executive
All the cover for both main categories will fall under third party,
third party fire and theft, or comprehensive/full coverage policies.
Both types may also include added on features such as breakdown,
replacement vehicle, windscreen/glass, and legal fees. Moreover, both
primary categories may include insurance schemes such as:
∑ Multiple Purpose Vehicles, Multiple Passenger Vehicles
∑ taxi fleet
∑ taxi base office
In some areas, the local licensing authorities may require having Public
Liability or Third Party Liability insurance. Even if not required, you
may want to consider having both, Public Liability and loss of income
coverage. It may be feasible to check into special types of taxi
business related cover combined with various motor insurance cover.
Step three: Compare policies and
Recent surveys revealed that many UK citizens do not do any type of
comparison shopping for insurance. This lack of shopping may cause the
citizens to pay too high for their coverage. However, thereís no real
excuse for not doing at least a little bit of comparison shopping, since
it can now be done online or off-line. To do online comparison shopping,
1. Visit several insurance comparison websites, as well as the websites
of insurance brokers and specialists. Accurately fill out their brief
forms and submit them. It may be tempting to alter or omit some of the
facts in order to get a better price. However, doing so can invalidate
your cover later if you do attain insurance based on that information.
2. Wait for the insurers to contact you with their offers.
3. When the insurers contact you, ask them questions, such as what kind
of discounts do they offer and what criteria are they basing your
premiums on. Ask them to tell you exactly what is included and excluded
in the offers they present to you. Donít be afraid to ask the insurer to
modify the policy to include and exclude the services you may or may not
need. Thereís no reason to pay a higher premium for services you donít
4. Compare all the policies and determine which one best fits your own
requirements and financial situation. Be sure you look for any hidden
charges and fees. Some insurers offer low upfront fees, but have several
hidden charges and fees, or more restrictions than those with higher
premiums. Also take into consideration the companyís financial stability
and customer care services. Youíll want a company that provides easy and
convenient access to their specialists, especially if you ever need to
file a claim or correct a billing statement.
Step four: Buy your policy
The fourth step is to purchase whichever cover seems to best fit your
requirements at the most reasonable price. If youíve done your in-depth
comparison shopping diligently, you should have several offers to choose
from. If you havenít received many offers, go through this entire
process again, conducting research both online and off-line.
Once you have purchased the cover, carefully read the entire policy to
ensure it contains accurate information. Have any inaccuracies corrected
right away, as they may affect any claims you make later. Then store the
insurance documents in a safe place. Then just follow the steps in this
guide whenever you have to renew or purchase new taxi insurance. The
discounts and standard policies may change over time, but the taxi
insurance purchasing process will not.
discuss your taxi insurance with a real live person?
Speak to Insurance Choice on 0844 55 77 926
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