As a taxi driver, your car is not just a vehicle, it’s your business. Therefore, making sure it is fully insured is vitally important. If your car is not insured correctly, then one accident could result in you losing your most important asset. Late-night driving, navigating busy inner-city roads, airport drop-offs and increased mileage can all increase the risk of an accident.
So, how do you choose between third party, third party fire and theft, or comprehensive taxi insurance? Follow our quick guide below to better understand the types of cover available:
Public or Private Hire?
Your insurance premium may differ depending on what type of taxi you drive. Public hire taxis, commonly known as hackney carriages or black cabs, can be hailed by customers in the street and often carry a taxi display sign.
Private hire taxis or minicabs are pre-booked over the phone with a taxi base office or via a mobile phone app such as Uber, they do not carry a taxi sign, and can’t be flagged down on the street.
Be clear on what type of taxi licence you have from the council as driving without the right licence or insurance cover is against the law and may result in a fine and your licence being revoked. Private hire taxi insurance will only cover you for private hire work, likewise you will need public hire taxi insurance if you have a public hire or dual licence.
Third Party Only
This is the most basic level of cover. Third party only taxi insurance will cover your passengers and any damage to third party property or personal injury, but will not cover any damage to your vehicle, or any loss due to theft or fire or damage to your windscreen. If you are involved in an accident that is deemed to be your fault, you will be liable for the cost of repair or replacement of your vehicle. Your policy will, however, cover all costs for damage or injuries you have caused to any other vehicles or third parties involved in the accident.
Third Party Fire & Theft
This is similar to third party only, but additionally covers the vehicle and its contents against fire damage or theft. Again, if you are involved in an accident and it is your fault, you are liable for the cost of repair to your vehicle. Third party fire & theft taxi insurance will cover any liabilities to third parties involved in the accident.
Comprehensive Taxi Insurance
This is the highest level of cover available. Should you be involved in an accident, comprehensive taxi insurance will cover all costs for repair or replacement of your vehicle, irrespective of whose fault the accident was and third party cover as standard. Your windscreen is also covered in the event of damage or chips. It is critical you use the approved repairers when claiming for repairs as there will be limits to the amounts the insurer will pay if you go elsewhere which will leave you out of pocket.
Your cover will include unlimited passenger liability cover, to make sure everyone in the vehicle is protected if you are involved in an accident. However, you may also want to look at public liability insurance, which will protect you and your business against any third party claims for injury or accidental damage.
Top Tips When Considering your Level of Cover on Taxi Insurance Policies
Still not sure if your cover provides the protection you require? Here are some key points to check before you sign on the dotted line:
• If you have agreed to a higher excess to reduce your premium, make sure you have the ability to pay this in the event of any claim for own vehicle damage.
• Reduce your premium by driving safely and maintaining a clean licence. This will help you build up your no claims discount.
• Make sure to declare any vehicle modifications, such as disabled access, as this can affect your cover.
• Consider fitting a security device to your vehicle, as this can also greatly reduce the premium, as can in-vehicle CCTV systems.
• If you want to use your vehicle when you are not working, make sure to check your insurance covers personal as well as business use.
Still got questions on what taxi cover is right for you? Contact the Cover My Cab team today.