Understanding Taxi Insurance Policies in the UK
Operating a taxi service in the UK comes with its unique set of responsibilities and risks. Ensuring your vehicles are
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Do I need taxi insurance?
If you operate a taxi or private hire vehicle in the UK, you are legally required to have taxi insurance. Standard car insurance policies typically do not cover vehicles used for commercial purposes like taxi services. Taxi insurance is specifically designed to provide coverage for the unique risks and liabilities associated with transporting passengers for hire.
Operating a taxi without the required insurance is illegal and can result in fines, penalties, and the suspension or revocation of your taxi license. To comply with UK regulations and protect yourself, your passengers, and your vehicle, it is crucial to have the appropriate taxi insurance in place. Be sure to work with a reputable insurance provider experienced in taxi insurance to get the coverage that meets your specific needs and obligations as a taxi operator.
How do I get cheaper taxi insurance?
Start early and research
Assess your insurance needs and choose the right level of cover.
Optional extras
Evaluate optional extras offered by insurers to determine if they are necessary for your circumstances.
Security
Enhance the security measures on the vehicle.
Pay annually
If possible, pay your insurance premium annually instead of in monthly instalments.
Drive safely
Maintain a good claims history.
Excess
Consider the amount of voluntary excess you're willing to pay in the event of a claim.
Credit history
Maintain a good credit history.
Review annually
Review your insurance policy annually upon renewal to ensure it still meets your needs.
Combine policies
If you have other insurance policies, such as home or business insurance, check if the same insurer offers taxi insurance and consider bundling them together for potential discounts.
Types of taxi insurance
Private hire vehicles, commonly referred to as minicabs, are not allowed to pick up passengers on the street or at taxi ranks without a prior booking through a licensed private hire operator.
Passengers must book private hire vehicles in advance through a licensed private hire operator. This can be done through phone calls, mobile apps, or in-person at the operator’s office.
Private hire taxi insurance is required for vehicles that operate under pre-arranged bookings. This insurance covers passengers and third parties while the vehicle is en route to fulfill a pre-booked journey.
Private hire vehicles typically do not display taxi signage or taxi meters on the exterior. They may have signage or markings that identify the private hire operator but do not indicate that the vehicle is available for immediate street pickups.
Public hire taxis, often referred to as “hackney carriages” or “black cabs,” are licensed to pick up passengers without prior booking. They can stop and pick up passengers who hail them on the street or at designated taxi ranks.
Public hire taxis do not require pre-booking. Passengers can hail them directly from the street or approach them at taxi ranks.
Public hire taxi insurance is required for vehicles that can pick up passengers on the street or at taxi ranks. This insurance covers passengers and third parties during both pre-arranged and street pickups.
Public hire taxis are typically readily identifiable by their taxi signage, taxi meters, and illuminated “Taxi” signs on the roof. These markings indicate that the vehicle is available for immediate pickups.
What taxi insurance do I need?
In the UK, the type of taxi insurance you need depends on the nature of your taxi service and how you pick up passengers. There are two primary types of taxi insurance:
Public Hire Taxi Insurance includes both pre-arranged bookings and passengers picked up on the street or at taxi ranks. You may need additional insurance coverage for personal belongings left in the vehicle by passengers. Ensure your policy meets local authority requirements and complies with the conditions of your taxi license.
Private Hire Taxi Insurance is primarily for pre-arranged bookings made through a licensed private hire operator. You may need separate insurance for vehicles used for chauffeur services or executive hire. The policy should comply with private hire regulations and the terms of your private hire operator’s license.
FAQ
Need more help?
Can I use my personal car insurance for my taxi service?
Personal car insurance policies do not cover vehicles used for commercial purposes, including taxi services. You must have a dedicated taxi insurance policy in place.
Do I need additional insurance if I offer executive or chauffeur services?
Depending on the nature of your services, you may need additional coverage beyond standard taxi insurance. Discuss your specific requirements with your insurer to ensure you have the appropriate coverage.
Can I change my taxi insurance policy during the policy term?
You can often make changes to your taxi insurance policy during the term, such as adding or removing vehicles, updating coverage limits, or making other adjustments. Contact your insurer to discuss any changes you wish to make.
What is public liability insurance for taxi drivers?
Public liability insurance for taxi drivers covers legal expenses and compensation payments if a third party (not a passenger) is injured or their property is damaged due to your taxi service. It is typically included in taxi insurance policies.
What should I do if I'm involved in an accident while driving my taxi?
If you’re involved in an accident, prioritise the safety of passengers and others involved. Exchange insurance and contact information with the other party, report the accident to your insurer promptly, and follow any legal and regulatory requirements.
Do taxi insurance policies cover personal belongings left in the taxi by passengers?
Some taxi insurance policies may offer coverage for personal belongings left in the taxi by passengers. Review your policy or discuss this coverage with your insurer.
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