If you’re a taxi driver, it’s important to make sure that you have the right taxi insurance in place. Taxi insurance is a specialist sort of protection which comes in two main types – public and private. Within these two types, you can choose from different levels of cover, including fully comprehensive, third party, fire and theft and third party only.
Now the question remains, which insurance is right for you?
Public hire taxis
Public hire taxis are vehicles which can be hailed from the street or be approached at a taxi rank. These more often than not display a taxi sign and will require public hire insurance.
Public hire insurance
Public taxi insurance covers you for when you’re transporting members of the public, as well as their property. This is the most common type of taxi insurance and it’s typically required by law. If you want to be able to take paying customers in your public hire taxi, then you’ll need this type of policy.
Private hire taxis
Private hire taxis are vehicles which need to be booked in advance, for example, through an app. They don’t typically display a taxi-for-hire sign and will require private hire insurance. Most larger taxis, such as MPVs (multi-purpose vehicles) and minibuses, will be private hire only.
Private hire insurance
Private taxi insurance covers you for when you’re transporting pre-booked passengers, as well as their property. If you want to be able to take paying customers in your private hire taxi, then you’ll need this type of policy.
Knowing the difference between public and private hire taxi insurance is important as purchasing the correct type of cover means you’ll be protected should an accident happen. If you’re unsure, it’s always best to check with your taxi company or the local authority as to what type of insurance you need. We also advise that you make sure to read the policy details carefully before making a purchase.
Unfortunately, it isn’t as simple as choosing between public or private hire insurance, there are levels of cover within these types but with our guide below we hope to make it a little easier for you.
Fully comprehensive cover
This is the generally best version of taxi insurance cover you can get as it includes cover for damage to your vehicle, as well as cover for any third-party damage or injury. It’s worth noting that with taxi insurance, you’re typically only covered for business use and not personal use.
Third-party, fire and theft cover
This is the second-best level of taxi insurance cover as it includes protection against fire damage or theft of your vehicle, as well as any third-party damage or injury. Again, it’s worth noting that with taxi insurance, you’re typically only covered for business use and not personal use.
Third-party cover
This is the minimum level of taxi insurance which is legally required in the UK. It covers any damage or injury caused to a third party, but not to your own vehicle.
Public liability Policies
This is a separate policy for taxis which covers you for any injury or damage caused to members of the public, as well as their property. Generally, public liability policies are in addition to your taxi insurance and some providers include it as standard, but not all, it’s best to check with your insurance provider. It’s worth also noting that public liability policies are not typically required by law, but it’s always best to check with your taxi company or the local authority.
To conclude
Now that you know the different types of taxi insurance available, it’s time to find the right policy for you with our online comparison service. We instantly compare taxi insurance from a panel of leading insurers to help you find the best cover at the most competitive price. Get a quote in minutes and see how much you could save!
