Taxi drivers in the United Kingdom must have the correct insurance for their vehicles to operate safely and legally. There are a lot of differences between car and taxi insurance, therefore knowing the differences and having the correct form of insurance will save a lot of trouble in the future. Whether you drive a private or public hire taxi you will need to ensure you have the correct insurance in place.
Why do you need taxi insurance?
Taxi insurance protects both you and your passengers whilst you are working. If an accident happens, or something is damaged, taxi insurance will cover the majority of the costs so that you don’t have to. It also covers you if one of your passengers makes a claim against you, for example, if they injure themselves whilst in your vehicle.
As a taxi driver, you are classed as a higher risk than a normal car driver due to the amount of time you spend on the road in comparison to other road users. This is because you are more likely to make claims on your insurance, and the costs of these claims are usually higher. For this reason, taxi insurance can be more expensive than regular car insurance.
Do you need different insurance for private and public hire taxis?
If you use your car for private hire work (for example with Uber or minicabs) you will need to get private hire taxi insurance. This is a special form of insurance that covers you for taxis that are booked in advance. You cannot use regular car insurance for private hire work, and if you do you most likely won’t be covered if something goes wrong.
If you use your car for public hire work (for example, black cabs) you will need to get public hire taxi insurance. Like private hire taxi insurance, this is a special form of insurance and covers taxis that can be hailed on the street. Again, regular car insurance does not cover public hire taxis so you would be taking a big risk if you used it.
Why do you need taxi insurance?
Driving a taxi usually involves covering a lot more miles on the roads than a normal car driver. This means that there is a higher chance of an accident happening, and also that any damage caused could be more expensive to repair. The increased mileage paired with the fact that taxi drivers by trade carry passengers for a living means that taxi insurance is a must.
Not only does taxi insurance protect your vehicle, but it also protects your livelihood. If something happens and you don’t have taxi insurance, you could be left with a large bill to pay, or even worse – out of work.
Furthering on, taxi insurance is important especially since you’ll be carrying passengers for a living. To ensure you protect both yourself and your passengers it’s generally a good idea to find a policy that either includes or allows you to add on Public Liability Insurance. In the long run, this form of insurance could save you a lot of money should you have an accident, particularly if a claim is made against you. Whilst Public Liability Insurance is not a legal requirement in the UK, having insurance for your taxi is.
Can you use car insurance for your taxi?
Whilst taxi insurance has many similarities to car insurance they’re not the same. You might have considered using your car insurance for your taxi, however, if you do this you may not be covered. Taxi insurance is specially designed to cover the risks that come with driving a taxi, so it is important to get the right type of insurance for your vehicle.
Not only could using your car insurance invalidate your policy, but if something happens and you’re not properly insured you could be left with a large bill to pay. It’s not worth taking the risk, so make sure you get the correct taxi insurance for your vehicle.
To conclude, taxi insurance is a legal requirement in the UK for all taxi drivers. It protects you, your passengers, and your livelihood, so it is definitely worth the investment. There are different types of taxi insurance available depending on whether you do private or public hire work, so make sure you get the right cover for your needs. And finally, don’t be tempted to use your car insurance for your taxi – it’s not worth the risk!
To compare and find the best taxi insurance prices for you try our price comparison service.