Whether you are driving a regular, minibus or an MPV taxi, do not just grab the keys and go without having any knowledge of how taxi insurance works. You would need to find the right policy because insurers consider you to be a high risk since you drive at unsociable hours as well as visit built-up and inner-city areas. With a greater tendency of being involved in an accident and the high mileage you cover, taxi insurance costs more than standard car insurance policies. Here are things you need to know:
1. Get A Taxi Insurance Quote: Do not just renew your insurance policy if you are already on one without comparing quotes online. By comparing quotes, you would save money when you buy a policy that would take care of your needs, whether it be a public or private hire cover. You also save money if you make an annual payment as against monthly payments.
2. Taxi Policy Options: There is the ‘Named driver policy‘ which covers a single taxi and its driver; an ‘All-driver policy that caters to every driver above a given age; and ‘Policy Only’ which is the cheapest cover but charges steep premium when fleet taxi owners pay for additional names.
3. Public Liability: Check to know if your insurance covers you in a situation where your passengers suffer injuries or any other loss while in your cab. If this is not taken care of please do take a separate policy for it.
4. Taxi Breakdown Coverage: Ensure that the cover which you get if your taxi breaks down will see you back on the road quickly. Compare a dedicated breakdown cover against an insurance add-on price to get the best offer which would see you maximize your fare-earning time.
5. Location: Some insurance policies only cover you within a particular area. Get the best insurance cover that handles the area which you intend to cover.
6. No Claims Bonus: Check if your taxi insurance policy gives you a no claims bonus or discount when you drive for one year without making any claims on them.
7. Declare Any Modifications On Your Taxi: If for any reason you modified your taxi, make sure you declare it or risk not getting paid if you make a claim. For instance, if you do not declare the mileage which you might be covering, an insurer may refuse to pay your claim. The only modification allowed is that done for security purposes. For those who do high mileages, it is best for them to take up an unlimited mileage clause. If your taxi has a disabled access it would be considered to be modified and would attract more premium.
8. Taxi Security: You may be entitled to some discount if your taxi has security features such as a CCTV, an interior/exterior camera, and so on.
9. DVSA Driving Test: You may be required to take a DVSA Driving Test to be eligible to drive a taxi.
10. Personal Coverage: Know if you are covered when you use your taxi for private transportation. You should also know if you are covered for any personal injury you suffer.
It is important that you do not carry more passengers than the number you are insured for. There is so much to taxi driving insurance but a good knowledge of the ones listed here would serve you well.