How to Choose the Right Taxi Insurance Policy

Why do I need taxi insurance? All taxi drivers need taxi insurance to be able to drive a vehicle on a public road in order to carry passengers for hire or reward. This can be public hire for hackney carriages (black cabs), where vehicles can be stopped i.e. ‘hailed’ or ‘flagged’ in the street or private hire (minicabs) where vehicles must be pre-booked by telephone or online.

What defines a taxi driver? Taxi drivers are usually self-employed and must have a taxi driving licence from the local council in order to operate on either a Hackney Carriage or Private Hire basis. Private Hire taxis are only permitted to carry passengers when the journey is pre-arranged. They are not licenced to display a ‘taxi’ light on the vehicle roof or to pick up passengers from a public street. Black cab or Hackney Carriage taxi drivers can operate on a Public Hire basis and can pick up passengers off the street, taxi rank or can also operate on a Private Hire basis.

Drivers must be aged 21 or over to drive a Hackney Carriage taxi and have held a driving licence for a minimum of 12 months. They must be free of criminal convictions in fraud, theft, violent or sexual offences. Drivers may also be required to pass a medical and a take a formal test of their knowledge of the local area. Similar requirements apply to Private Hire drivers.

What should I look out for when choosing taxi insurance? Cost isn’t the only factor that you should consider when taking out your taxi insurance. Taxi Haarlem A lower premium may mean a lower level of cover. You should check what is included in your cover as items such as radio cover, courtesy vehicles and glass cover are often excluded. You should also check what compulsory excesses apply. This is the amount you will need to pay in addition to your voluntary excesses in the event of a claim. Make sure you’re not in for a nasty surprise at claim time. Finally, check what’s involved in protecting your no claims bonus. This will generally make your insurance premium higher but the guarantee may only be upheld if you stay with the same insurer.

How can I reduce my taxi insurance premiums? Voluntary Excess Voluntary excess is the amount you will be expected to pay in the event of a claim. Generally speaking, the higher the voluntary excess, the lower your premium however you should be aware that it will cost you should you need to make a claim. This is in addition to any compulsory excess which may apply to your policy.

Limited Drivers Insurers tend to favour fewer drivers as less drivers means less risk. Restricting your policy to just yourself or you and one other named driver will generally yield the biggest discounts. Experienced Drivers There are usually discounts for more experienced drivers as this tends to pose less risk to the insurer. The longer you and any named drivers have held a local authority taxi badge, the more discount you’re likely to receive on your premium.

No Claims Discount You can often earn between 20% and 60% discount depending on your no claims experience. If you and your named drivers have at least one year claim free driving, you should be entitled to further discounts on your policy. Some insurers will allow you to use no claims experience earned on a private car but you should always check with the insurer first.

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