Taxi Insurance - Questions That May Arise in a Few Minds

Taxis are also like personal cars, so they also need to be insured. There are different kinds of taxi businesses; black cabs, chauffeurs, public hire taxis and private hire taxis. Adequate protection is required against the risks in all types of businesses.

Is taxi insurance a legal necessity?

In the UK, all vehicles are required to be insured, whether it is a personal car or a cab. In case of any type of taxi business, a policy is required for protecting the business, vehicle and the passengers traveling in it.

What types of policies are available?

The various types of insurance available are for taxi, black cab, fleet taxi, private hire, public hire, multiple drivers, chauffeur, and minibus.

How to choose a right policy?

There are many companies providing insurance cover, offering different features in the policies. A detailed research is needed online or offline to make a comparison among few companies and then select the comprehensive policy at the right price.

Research should begin from the type of taxi business a person is running and choose the right kind of insurance from the above mentioned types. Then one should determine the type of risks that are likely to arise.

What level of cover is needed?

Some sort of taxi insurance is needed. However, the level of the cover taken is up to the businessman. Few businesses choose comprehensive insurance, while others save money and just meet their legal necessity of buying insurance.

It is important that one should buy policy for at least common risk factors. The business depends on the cabs and its breakdown cover can relieve the businessmen from a big loss.

The insurance depends on the type of business. For example:

• Chauffeurs need providers that will provide replacement executive vehicles.
• Black cabs need protection in big cities.
• Fleet insurance will cover a group of cabs.

Get quotes from four or five providers that how they will cover the individual needs.

What are the reasons for differences in the premium rates?

Few people may not know why the premium is low for some policy holders and high for others. The cost of the coverage depends on many factors - driver's age, gender, previous accidents, vehicle's model, area of business and many other factors. There are opportunities of discounts in premium when the driver is experienced and area of business is small. Ask for discounts while buying policies. Providers do not disclose all types of discounts themselves.