Choosing the right taxi insurance

right taxi insurance

As any good taxi driver knows, choosing the right taxi insurance for a taxi cab is far more difficult than for a standard car, as there are a number of complicating factors to consider.

These include the additional mileage you will be racking up while on the road, the fact that you will be carrying high numbers of passengers every day, and the fact that taxi drivers tend to drive at unsociable hours. Indeed, in the eyes of insurers, a taxi driver is subject to many more risks than a personal car user, and should be insured as such. There are a wide array of different kinds of taxi policies you can apply for, as the following list sets out:

Private hire taxi insurance

Private hire vehicles are the kind of taxis that need to be booked in advance and cannot simply be flagged down on the street. Private hire taxi insurance may be cheaper than public insurance as there are fewer complicating factors associated with the vehicles. However, the cost of the insurance will primarily depend on the age of both the vehicle and the person driving it. As with all kinds of vehicle insurance, the younger the driver, the higher the cost.

Public hire taxi insurance

Public hire taxis can be flagged down by members of the public and are allowed to have taxi signs displayed on the vehicle. Although public taxi insurance has an increased number of risk factors compared to private hire, public hire taxis tend to be newer, which can lower the price of insurance considerably.

Minibus and people carrier insurance

Minibuses and other large vehicles tend to come with much higher premiums than smaller cars due to the higher number of passengers posing potential risks.

Named driver policies and all-driver policies

Whether you get a named driver policy or an all-driver policy depends on who will be driving the vehicle. Of course, all-driver policies are more expensive so it is up to fleet owners to decide the most cost-effective method of insuring their drivers. It is also important to note that most all-driver policies require a minimum driving age of 25.

While this guide gives a brief overview of the kinds of insurance taxi drivers can take out, there are actions you can take to get a better quote so it is a good idea to shop around before purchasing insurance.

For more information, check out our help for taxi drivers page.