Any vehicle which is intended to be driven or parked on a UK public highway is legally obliged to be insured. Any vehicle which is intended to transport passenger for payment must also have taxi insurance.
There are 2 kinds of UK Taxi Insurance and care must be taken to purchase the correct policy. The first is ‘Public Hire’ and this allows the taxi to pick up fares up from the street. The second type is ‘Private Hire’ and taxi’s insured on these policies’ must only pick up pre-booked fares from specified places.
Most UK Taxi Insurance policies cover either the policy holder only or specific named drivers. Insurance costs will increase, the more drivers are on a policy, however, it is possible to have all driver cover if required.
Considerations for your insurance are similar to car insurance. The type and value of the car you use as a taxi is relevant. Estate and saloon cars are often purchased by taxi drivers as they not only seat 4 passengers but also provide sufficient luggage capacity.
Another element of UK taxi insurance similar to private car insurance is that; you will have the option of 3rd party, 3rd party, fire and theft or comprehensive cover. UK taxi insurance policies also offer the opportunity to use no claims discount to reduce the price of cover. Another element of your policy which will affect the overall price is the level of excess you decide on; just like with private car insurance, the higher the excess you are prepared to accept, the lower the premiums will be.
However, there are additional elements to look out for such as new taxi driver discounts which you may be entitled to dependent on your driving record and the status of the vehicle you intend to hire out. Similarly if you do some internet research, you may also be able to find new business discounts; these will also take your driving history into account.
Public liability insurance is an absolute necessity for UK taxi drivers and some taxi insurance policies include it as standard but others require that you take it out separately. This anomaly can cause a disparity in pricing and therefore it is important not to buy the cheapest policy without being certain that it provides the cover you require.
Redmetro provides UK taxi insurance. Visit today for competitive quotes.