Why do I need taxi insurance?

September 25, 2014

Well, first of all if you’re either a part time mini cab driver or a full time taxi driver it is certain that you need taxi insurance as it is defined by the Road Traffic Act of 1988. Your standard form of vehicle insurance does not cover you and your passengers as a business. Taxis have to be insured for any accident or passenger injury they suffer in the course of your duties as well as their property or third party property. Taxis have to be covered for the “transportation of persons for hire or reward”.

There are two types of taxi insurance – public hire, which is where the general public can wave a taxi in and be picked up anywhere, and there is private hire which requires all journeys to be pre-arranged/booked via a taxi firm where you will make a phone call, then the taxi firm will arrange with their available drivers to collect you from your home or prearranged pick up point.

Just like normal vehicle insurance, taxi insurance is split into 3 different types; third party, third party fire & theft, and comprehensive. Taxi insurance is certainly more expensive than conventional insurance and, on average, it is certainly in excess of £1000 a year for third party fire & theft private hire insurance and over £2000 for comprehensive taxi insurance.
It’s also highly recommended that you should consider adding legal protection to your taxi insurance policy, which will provide you with legal advice and representation in the event of a litigation claim and also help you to recover your uninsured losses if you have an accident which is not your fault.

If you are looking for taxi insurance, simply call 0333 202 3144 to speak to one of our experts who will shop the market for you to find a cheap quote but with all the cover you need. We can cater for anything from single private and public hire vehicles through to large mixed fleets.