If you drive a taxi, you are legally required to get taxi insurance. This also applies if you drive any type of vehicle and carry passengers commercially, whether full-time or part-time, for public or private use. Taxi insurance is a form of hire coverage that protects taxi drivers, vehicles, and customers.
Additionally, it varies from limousines, black cars, and ridesharing providers in that their rates and pickup locations are regularly unexpected, and they don’t use expensive vehicles. This generates a new form of insurance risk. Moreover, it covers more than just standard taxicab activities.
It also covers other industries, such as airport shuttle services, sightseeing excursions, and certain rideshare hazards. Furthermore, if you are interested in this policy, you will require a complete taxi license.
Types of Taxi Insurance
We put together a list of choices you should make before purchasing taxi insurance. Here are the types of taxi insurance you need to know:
Private hire insurance
Private hire insurance covers private hire vehicles (PHVs). A PHV is a scheduled taxi or van that is unable to pick up clients on the sidewalk or at the taxi stand. If you drive a PHV or a taxi, you will require any of these coverage packages.
Public hire insurance
Public hire insurance covers conventional taxis such as the London black cab. They are also known as hackney carriages and can pick up passengers on the sidewalk. If you drive any of these, you will require public-hire taxi insurance.
What Does Taxi Insurance Cover?
Ideally, taxi insurance should cover public responsibility. This could include legal or financial claims from passengers who are injured or whose property is harmed in your taxi. Taxi coverage also covers the following:
- Taxis accumulate more mileage than private cars.
- Taxi drivers frequently come into contact with passengers, including drunk and belligerent individuals.
- Taxis are frequently driven in heavy traffic and stressful conditions.
- Driving is typically done at inconvenient hours.
How Much Does Taxi Insurance Cost?
The cost of taxi insurance varies by a variety of requirements. This includes your age, the type and size of the vehicle, annual mileage, and where you reside and drive. Additionally, 51% of taxi drivers may get a quote of up to £2,445 per year.
Taxi insurance rates may differ depending on whether you purchase your coverage through a broker, an agent, or directly from the insurance carrier. However, it is critical to have a policy that both suits your budget and provides enough coverage.
What Affects the Cost of Taxi Insurance
Generally, taxi insurance is greater than typical auto insurance. This is attributable to numerous factors, including:
More time spent driving
Taxi drivers dedicate more time driving over busy and social times than normal drivers. Insurers consider this more risky.
More miles are driven annually
Taxi drivers travel more miles each year than the average driver. They also invest more time traveling in busy urban regions, which raises their likelihood of filing a claim.
The size of your car
Larger vehicles, like estates or buses, are commonly employed as taxis. These kinds of cars can transport more people and their belongings than other automobiles. However, they are also more expensive to insure as a result.
Taxi Insurance Criteria
You may need to meet taxi insurance criteria set by your insurance company and the state in which you work. They can change depending on several things, including:
- City and state of operation: Each state has its own set of rules.
- Age and kind of vehicle: Some insurers may not accept older autos.
- Driver age and driving history: Younger drivers may have an impact on your eligibility.
For more information on state-specific requirements, contact your local Department of Motor Vehicles (DMV). Furthermore, inquire with your insurance carrier about its criteria.
Do I Need Taxi Insurance?
Taxi insurance is required by law if you perform a rental and pay service with a vehicle. Additionally, it covers an automobile vehicle when driving on public roadways, just like auto insurance. In contrast to car insurance, it covers both your passengers and your capacity to work.
Generally, you cannot lawfully operate a taxi business with normal car coverage, and if caught, you could face significant penalties. Moreover, this coverage isn’t just fair-weather, as it will be there when you need it the most.
How to Get Cheaper Taxi Insurance
You can reduce the cost of your coverage by:
Selecting the correct car
Generally, the less efficient your vehicle is, the lower the insurance expense. If you’re considering buying a car to use as a taxi, verify its insurance group and how much it will cost before you buy.
Yearly payment
Paying for your insurance yearly rather than monthly could save you money. Moreover, monthly payments typically include additional fees and interest rates.
Drive carefully
If you have a history of claim-free driving, you might expect to pay less than if you have previously claimed. You will also increase your no-claims bonus, which might get you a discount from insurance.
Enhancing your safety
Keeping your vehicle more unlikely to be stolen can help you save money on insurance. Installing features like an immobilizer or a dash cam reduces the likelihood of it being stolen.
Utilizing secure parking
Parking your car in a secured basement or on a driveway with surveillance is an excellent approach to keep your cab as safe as possible when not in use.
Shop around
Evaluating quotes from various providers might help you choose the perfect coverage for you. The most affordable choice is not necessarily the best, so do your research before purchasing taxi insurance.
