What Is Taxi Insurance and Why You Need It?

If you are a driver driving a taxi, to drive your vehicle legally on the road you need to have the right insurance cover for your taxi. As your vehicle is your only source of income, so for a driver driving taxi is it is important to have the right insurance cover that both you & your vehicle are safe to be on the roads. The right insurance cover always allows you to carry passengers and you do not have to refuse any business coming your way making you sure that your flow of income is regular.

What Is Taxi Insurance?

Taxi insurance is the insurance policy for the taxi drivers as well as the vehicles they use as their taxis. There are different types of taxi insurance available depending on the vehicle you use.

Private Hire Taxi Insurance:

Private Hire Taxi Insurance is for the type of vehicles that can be pre-booked and thus appear to be in lower insurance risk as they mostly derived by the younger drivers and the vehicles being older.

Public Hire Taxi Insurance:

Public hire taxi insurance is for the type of vehicles that need to be pre-booked. Though you may think that insurance requirements for public hire vehicles are higher but as these vehicles are usually driven by older, more experienced drivers. As these vehicles tend to be newer so the insurance quotes are in fact cheaper in price.

Minibus and MPV Taxis:

These types of vehicles usually lie in higher insurance group as they are a bigger vehicle and carry 9-16 passengers within them. So, the insurance premium for such vehicles is higher.

How Is Taxi Insurance Different from Regular Motor Insurance?

The difference between taxi insurance and regular motor insurance is based on various factors. The most obvious reason is that minicabs tend to travel a higher mileage each year compared to regular vehicles. This means that there are increased chances of the incident occurrence, so prices tend to be higher.

Another major factor is that minibusses are greater, unlike regular motor vehicles. Minibusses are used to transport even more passengers making premium prices higher. Generally, insurance policies for cab drivers reflect the distances they are traveling and the number of people they are responsible for. All such factors seriously impact premium prices whether they are a public or private hire taxi.

Why Do You Need a Taxi Insurance?

Taxi insurance is a must as taxi drivers are in a position of responsibility not only for their passengers but for their own safety as well. Without having the insurance coverage, if an accident happens drivers and the passengers both will be endangered both in monetary and safety terms.