What is the Difference between Public and Private Hire Taxi Insurance?

When it comes to Taxi Insurance, there are two separate categories to which you may hold a licence. These are private hire vehicles and public hire vehicles.

A public hire vehicle is a taxi that is licenced as a hackney carriage and may be flagged down at the side of the road. These vehicles are typically cabs and do not need pre-booking.

A private hire vehicle is more common and often takes the shape of a typical car. Private hire taxi’s must be pre-booked and cannot be flagged down at the side of the road. Uber is a typical form of a private hire taxi.

Both private hire taxi insurance and public hire taxi insurance include a level of hire and reward cover. Hire and Reward cover is what allows you to carry members of the public and their belongings for a fee.

Once insured, your licencing authority will require a copy of your insurance certificate. It is important that when applying for your licence to your local authority, that you apply for the correct type of licence.

Which is more expensive?

Typically speaking, public hire insurance is more expensive. The reason for this being that public hire taxi drivers rely on being in the right place at the right time to be flagged down on the road. As such, they need to operate in busier areas such as city centres and busy towns.

– Statistically, drivers who operate in busy built up areas are more likely be involved in an accident, especially where quick lane changing to pick us a passenger is required.

– Public cab drivers are also more likely to pick up a rogue passenger who could potentially damage their taxi. Instances of this may be picking up someone drunk from a night out.

– Public Hire Drivers often carry a large level of cash and therefore more likely to have both t their vehicle or their money targeted and stolen.

Whichever type of policy you require, we can help you find and compare prices.


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