What is taxi insurance and why do I need it?

black taxi cab

Taxi insurance is something that all taxi drivers need to consider, going above and beyond simple vehicle insurance that regular road users must use. Since your vehicle is your livelihood, as a taxi driver it is vital that you have the right cover to ensure that both you and your vehicle are safe to be on the roads carrying passengers at all times and you do not have to refuse any business coming your way, all of which ensures that your flow of income is regular.

What is taxi insurance?

Taxi insurance is the cover for taxi drivers and the vehicles they use as their taxis. There are various types of taxi insurance available, which are dependent on the vehicle:

Public hire taxi insurance:

Since these taxis do not need to be pre-booked, it may seem that insurance requirements for public hire vehicles are higher, but in fact due to the tendency for older, more experienced drivers and what tend to be newer vehicles, insurance quotes can in fact be lower.

Private hire taxi insurance:

Conversely, whilst these taxis can be pre-booked and thus may appear to be a lower insurance risk, due to their tendency for younger drivers and the vehicles themselves being older, this is not necessarily the case.

Minibus and MPV taxis:

For these types of vehicle, since there will be larger groups travelling within them, they will naturally be in a higher insurance group, which in turn means more expensive premiums.

How is taxi insurance different from regular motor insurance?

The difference between taxi insurance and regular insurance lies in a variety of factors. Firstly, minicabs tend to travel a higher mileage each year than regular vehicles, meaning that there is more risk of an incident occurring and, as such, prices tend to be higher.

Next, minibus insurance is even greater as, unlike regular motor vehicles, they are being used to transport even more passengers, making premiums higher still. Essentially, cab drivers’ insurance policies reflect the distances they are travelling, the number of people they are responsible for and whether they are a public or private hire taxi; all of which are factors that can seriously impact premium prices.

Why do I need taxi insurance?

Taxi insurance is vital since taxi drivers are in a position of responsibility not only to themselves and their own safety, but to that of their passengers. Without insurance, cabs are not covered should something happen to their vehicle, meaning that both them and their passengers are endangered, both in monetary and safety terms.

Is taxi insurance more expensive than regular motor insurance?

As discussed above, taxi insurance depends heavily upon the age of the driver, the amount of distance the vehicle is covering on a regular basis, and other factors including how many people the vehicle will be transporting.

With all this in mind, taxi insurance can be costly, and indeed it does tend to be more expensive than regular vehicle insurance where drivers are not responsible for the safe transportation of members of the public who are paying them; rather, simply requiring cover for their day-to-day driving for them and their family or friends.

Here at The Insurance Store, we are the proud providers of tailored taxi and minicab insurance packages. We are committed to making our customers’ vehicle ownership as cheap as possible by helping them get the most from their insurance policy. For more information on our services, contact our friendly team today.