Haris Ashley
Taxi insurance is a specialist vehicle insurance policy designed to cover cars used for commercial hire. It is a legal requirement for taxi drivers to have a valid taxi insurance policy, as a standard car insurance policy will not be sufficient. Taxi insurance covers vehicles used as taxis, including both public and private hire vehicles. It is designed to protect the driver, their vehicle, and their business against any damages or injury claims made by passengers or members of the public.
Taxi insurance offers the same three levels of protection as standard motor insurance: fully comprehensive, third-party fire and theft, and third-party only. However, there are additional cover options specific to taxi insurance that drivers should consider, such as public liability insurance and personal use cover.
| Characteristics | Values |
|---|---|
| Type of insurance | Specialist vehicle insurance policy |
| Purpose | Covers cars used for commercial hire |
| Who needs it? | Taxi drivers, black cab drivers, private hire vehicle drivers, Uber drivers |
| Is it a legal requirement? | Yes |
| Does regular car insurance cover taxis? | No |
| Types of taxi insurance | Public hire taxi insurance, private hire taxi insurance |
| What does taxi insurance cover? | Vehicles, customers, damage to other vehicles, third-party liabilities, fire and theft, damage to own taxi, injury claims, property damage claims |
| Minimum age for taxi drivers | 21-25 years |
| Additional requirements for taxi drivers | Valid driving licence, taxi licence, "fit and proper person" criteria, background check, character check, medical examination, knowledge test, additional driving test |
| Cost of taxi insurance | £1,000-£4,000 per year |
What You'll Learn
Public liability insurance
While public liability insurance is not a legal requirement, it is recommended to have this insurance. Without it, taxi businesses could face high costs from defending or settling claims.
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Personal use cover
As a registered taxi driver, you can still use your vehicle for social, domestic, and pleasure purposes in addition to hire. However, rules can differ depending on your local council, so it is always best to check in advance.
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Unlimited mileage
As a taxi driver, you will likely drive a lot of miles each year, so an unlimited mileage policy will ensure you are not charged for driving too much.
Taxi insurance is more expensive than standard car insurance because taxi drivers complete more miles than other motorists, often in congested conditions. The higher cost also reflects the fact that taxis are usually bigger than conventional cars, which means they fall into a higher insurance group.
The cost of taxi insurance is also influenced by the same factors as standard car insurance, such as where you live, your driving history, and the type of vehicle you drive.
However, there are ways to keep the costs of taxi insurance down. For example, you can choose a car in a lower insurance group, drive safely to avoid convictions, and build up a clean record.
You can also consider purchasing an unlimited mileage policy, which can provide peace of mind and help you manage your costs if you expect to drive a significant number of miles. This type of policy ensures that you won't be charged extra for exceeding a certain mileage threshold.
When shopping for taxi insurance, it's important to compare quotes from different providers and consider the specific features and coverage options included in each policy. By reviewing your options carefully, you can find a policy that offers the best value for your needs.
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Breakdown cover
- 24/7 roadside assistance to help repair your vehicle.
- Transportation to a local garage if the taxi cannot be repaired at the roadside.
- Alternative transport or overnight accommodation for you and your passengers if the taxi cannot be repaired on the same day.
- Misfuelling cover to help with the cost of draining incorrect fuel and replacing it with the correct fuel.
- Key cover to help if you lose or break your keys or lock them in your vehicle.
Who Needs Breakdown Cover?
The cost of breakdown cover can vary depending on the age of your vehicle and the level of cover you choose. For example, one provider offers standard recovery cover for vehicles aged 1-5 years at £51 per year, while another offers cover for vehicles aged 6-10 years at £77 per year.
How to Get Breakdown Cover
You can purchase breakdown cover as an add-on to your taxi insurance policy. It is important to note that breakdown cover is not a legal requirement, but it can provide peace of mind and assistance in the event of a breakdown.
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Legal cover
The legal cover component of taxi insurance policies varies depending on the insurer and the specific policy. Some policies include legal cover as standard, while others offer it as an optional extra. It is important for taxi drivers and companies to review their policies carefully to understand the extent of their legal cover.
In addition to legal cover, taxi insurance policies typically include other types of protection, such as public liability insurance, personal cover, unlimited mileage, and breakdown cover. These components work together to provide comprehensive protection for taxi drivers, their vehicles, and their passengers.
While taxi insurance policies differ, they generally cover legal fees and costs associated with claims and lawsuits. This can include compensation claims, legal representation, and settlement fees. It is important to note that legal cover may have certain limitations or exclusions, so reviewing the policy details is essential.
To summarise, legal cover is a crucial aspect of taxi insurance, providing financial protection in the event of legal disputes. It covers the costs of legal proceedings, ensuring that taxi drivers and companies can navigate legal issues without incurring excessive financial burden.
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Frequently asked questions
Yes, you need a specialist vehicle insurance policy or commercial policy for taxi driving, as a standard car insurance policy will not cover you for this.
Yes, but you must remove any signage that indicates it is a taxi. Check with your local authority or council, as rules differ in various areas.
Public hire taxis can be hailed on the street or picked up at a taxi rank without a booking. Private hire taxis must be pre-booked and cannot be hailed on the street.
Taxi insurance usually includes public liability insurance, which covers injury claims from passengers and members of the public. It also typically includes cover for windscreens, and the same three levels of protection as standard motor insurance: third party only, third party fire and theft, and comprehensive insurance.
