Private Hire Taxi Insurance

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 The short answer is no. If you provide private hire taxi services, you’re required to private hire insurance. Your regular vehicle insurance will not provide adequate coverage in the event of an accident and/or damages.

In addition, the region you choose to work will also require you to have private hire insurance before you can get a license to work in that area.

 Here, again, the answer is no. You must buy the right type of insurance for your taxi business. If you provide a pre-booked service for paid passengers, then you’ll have to buy private hire insurance.

When you’re ready to shop for insurance, one of the best things you can do is comparison shop via an online site. A comparison site offers you access to a large number of specialist insurance providers, including taxi insurance providers. It’s fast and easy to review policies, premiums and more.

Once you have a list of possible insurers, it’s a good idea to call the companies and discuss their insurance coverage. Be sure to read through all of the terms and conditions, so you’ll know what the policy covers. And don’t hesitate to ask questions. If the agent doesn’t seem helpful, then move on to the next insurance provider on your list. You need to feel comfortable with the company and agents in addition to buying the right coverage for your business.

 This is a common question, and the answer is they’re the same type of coverage. The terminology can be confusing, to say the least. When it comes to coverage, these types of insurance are the same and both offer the same types of policies and levels of protection.

The main difference between private hire taxis and minicabs is that the term “minicab” is often used to refer to private hire vehicles in London and southern England.

That’s it! Otherwise, the insurance coverage is the very same, as both types of taxis are private hire vehicles.

Yes, this type of insurance does tend to cost more, especially when compared with insurance for your personal car. The reason it costs more is due to the number of hours taxi drivers work, along with the higher mileage compared to driving a personal car. Longer hours and more miles for cab drivers increase the risks of having an accident and/or causing damage.

Due to these higher risks, insurance providers charge higher premiums for taxi insurance of all types, including private hire insurance.

However, keep in mind that insurance coverage is required for your business and it may help to look at the expense as an investment that protects you and your business.

In addition to private hire insurance coverage, you may find that some insurance providers also include add-ons you can purchase that are combined with your policy. These may include:

• Breakdown and recovery assistance: if your car should break down on the road, the insurance provider sends help to get your vehicle back up and running.
• Uninsured loss recovery: which protects you against accidents and damage caused by uninsured drivers.
• No claims bonus: if you’re a safe driver, with no tickets and a low number of claims, this bonus can earn you a lower premium.
• Vehicle replacement: if you’re in a no-fault accident, this add-on will replace your vehicle.
• Personal use cover: if you use your vehicle for personal use once your off work.
• Public liabilities coverage: helps pay your legal expenses in the event of legal action from your passengers or other drivers on the road.
• Cyber and data protection: this is a relatively new type of coverage that protects your business data files such as contact or payment details.
• Home start cover: if you keep park your taxi at home, and you wake up to a dead battery, this will help get your car started in the morning.

You’ll generally find that private hire insurance offers three types of coverage:

• Third-party only (TPO): this is the most basic type of coverage and only provides protection to those (third parties) who are injured or whose property is damaged in an accident for which you’re held at fault while driving your taxi. TPO policies do not protect you or damage to your vehicle.
• Third-party fire & theft (TPF&T): these policies include the same coverage as TPOs, with the addition of protection for your vehicle from fire and theft (or attempted theft).
• Comprehensive: policies offer complete protection. A comprehensive policy covers all of the above and includes coverage for damage to your vehicle. Some policies will also cover you in case you’re injured.

Private hire vehicles are family-sized vehicles and minibuses which carry up to eight passengers. They: cannot be hailed in the street and would have a yellow door sticker and a yellow plate attached to the rear of the vehicle displaying the licence number.

What is Public Hire Insurance? Public Hire, sometimes referred to as ‘hackney carriage’ or ‘black cab’ are the iconic British taxis that are available to use from a taxi rank or to hail down on the street. … Public Hire Insurance is required to insure these vehicles for the correct form of hire and reward service.

Taxis are hackney carriages and are licensed to pick people up from the roadside, i.e. hailing a cab. Private hire vehicles are only permitted to pick up pre-arranged bookings and are not permitted to pick people up from the side of the road.

Purpose of the Role as a private hire driver. 

A private hire driver is responsible for driving a passenger-carrying vehicle (PCV) on private hires, transfers, tours and any other work undertaken in a safe, comfortable and professional manner
A private hire driver is responsible for the presentation of both the vehicle and him/herself, remembering at all times that they are the first to point of contact with CT Plus.
A private hire driver is responsible for planning all routes to ensure the best journey times, ensuring the route is suitable for the size of the vehicle being driven and that EU drivers’ hour’s regulations are complied with at all times.
A private hire driver is responsible for ensuring that passenger experience is always second to none due to excellent customer service.

Private hire taxi insurance is more expensive than conventional cover because taxi drivers complete more miles than other motorists, and often do so in congested conditions. This is why taxi drivers can find they pay a premium for their cover compared to standard motorists.

Yes – you can pay monthly or all in one go, ask the advisor for options available across a range of taxi and private hire insurance products, subject to status. Ask us for repayment options and details when you get a quote.

There are a few surefire ways to save money on private hire insurance. Below are three of the best:

• Pay Annually – Most insurance providers will prefer if you pay for your policy for the whole year rather than monthly and will usually offer you a discount when you choose to pay like this
• Make Your Vehicle Secure – To minimise the risk of theft, you should have an alarm and central locking on your cab. This shows insurance providers that the risk of theft is decreased and therefore they can offer you a cheaper price on your policy. 
• Get Multiple Quotes – Getting multiple quotes means you get a clear idea of what you should be paying for a policy and gives you the ability to select the best policy at the best price

Private hire vehicles (or minicabs) are public transport vehicles. However, a private hire vehicle cannot ply for hire or stand in a rank. It must be pre-booked with a private hire operator e.g. through the operator usually by telephone.

In order to drive on the Uber app, you’ll need a private hire licence from a council that Uber is licensed by. If you don’t have one, that’s OK – we’ll help you get started with a personalised Ignition appointment where we offer advice and support after you sign up.

Depending on your experience, years without claims, convictions, car details or other important information, prices do vary.

Private hire insurance could cost between £1500 and £3500 per year for comprehensive private hire insurance cover. Can usually be paid yearly, quarterly or monthly. Prices for shorter-term insurance can also be slightly higher due to companies admin costs.

Guide to PHV insurance in the UK?

Driving a private hire (PHV) taxi for a living is a fast-growing industry. Since Uber launched in 2009, the number of people operating PHV has exploded. According to Uberestimates.com, Uber has more than three million registered drivers and they’re working in 676 cities and states worldwide.

Those considering joining the driver ranks in Britain are asking what it costs to get on the open road. Some costs are obvious – a suitable car, fuel, license, vehicle repairs. However, one cost is not so obvious – at least not until now. This is PHV insurance – a legal requirement.

Buying insurance

Until 2018, buying PHV insurance meant hours on the phone or in a broker’s office. You had to complete forms, show documents, wait for underwriters. You didn’t know the cost until the quote came back. A driver anxious to get out and get earning could wait extra days or weeks with this creaky, paper-driven process. Fortunately, things have changed.

Types of PHV insurance

No matter how you buy it, you must have PHV insurance. Standard car insurance won’t do. In the UK there are three levels of PHV cover – fully comprehensive (which covers everything), third party (which covers others in an incident, plus your passengers – not you or your car) and third party, fire & theft (the third party with your vehicle also being covered if it is stolen or goes up in flames). There is also the Excess. This is compulsory and it is typically £250. You pay this sum as part of any claim you make. You can also opt to pay a Voluntary Excess in the event of a claim – this is usually around £500 – £1,000. Agreeing to a Voluntary Excess will lower your policy cost. Any no-claims-bonus from your standard motorists’ policy cannot be moved to your PHV policy, you must build a new bonus with your PHV cover. Lastly, you may be able to get a replacement vehicle cover, which pays for an interim car while your damaged one is fixed. This can be expensive, but if your car’s your breadwinner, it may be worth considering.

The cost

Several things affect the price. Driver history is the big one. The worse your history, the more you pay. Policy type, vehicle type, driver age, years of taxi experience and mileage are also considered. A typical PHV driver, over 25 years years of age, with a standard saloon car and a clean history will pay around £1,500 – £3,500 a year for fully comprehensive cover. This figure can rise substantially for new and young drivers or those with spotty history. Often, this cost can be paid on a monthly or quarterly basis instead of all upfront.

If you’re just starting out or your insurance is coming up for renewal, why not give Mymoneycomparison a try? Get a quote online or call 0333 006 9429 while you wait and find out in minutes what can take days or weeks elsewhere.

Public liability insurance is advised, especially if you are a motor trader, taxi driver or courier. It protects you in the event of accidents and incidents involving the general public – and the claims for damages and legal costs that can follow.

Yes, if you have a credit or debit card we can issue you with immediate cover, subject to normal terms and conditions. Please note that if you choose to pay by Direct Debit we will require a deposit from you, payable by credit or debit card and you will need an account that supports the Direct Debit facility. Some insurers may request documents upfront prior to going on the cover.

Yes, we have underwriters who may allow a discount subject to criteria.

Comprehensive Guide to Private Hire Taxi Insurance

Introduction

Private hire taxi insurance is a specialised form of vehicle insurance designed for drivers who operate private hire vehicles. Unlike public hire taxis (black cabs), private hire taxis must be pre-booked and cannot be hailed on the street. This guide aims to provide a detailed understanding of private hire taxi insurance, covering its importance, types of coverage, factors affecting costs, tips for finding affordable insurance and frequently asked questions.

What is Private Hire Taxi Insurance?

Private hire taxi insurance is a mandatory requirement for drivers who transport passengers for a fee in pre-booked vehicles. This type of insurance is specifically tailored to cover the unique risks associated with carrying passengers and operating as a private hire driver.

Importance of Private Hire Taxi Insurance

1. Legal Requirement: Operating a private hire taxi without proper insurance is illegal and can result in severe penalties, including fines and licence revocation.
2. Financial Protection: It provides financial coverage against accidents, damages, and legal liabilities, protecting both the driver and passengers.
3. Professional Credibility: Having comprehensive insurance enhances the trust and credibility of the driver and their service.

Types of Private Hire Taxi Insurance

1. Comprehensive Insurance: This provides the highest level of coverage, including damage to your vehicle, third-party liabilities, theft, and personal injury.
2. Third-Party, Fire and Theft: Covers damages to third parties and their property and provides coverage if your vehicle is stolen or damaged by fire.
3. Third-Party Only: The minimum legal requirement covers damages to third parties and their property but not your own vehicle.

Additional Cover Options

1. Public Liability Insurance: Protects against claims made by passengers or the public for injuries or damages.
2. Employers’ Liability Insurance: Necessary if you employ other drivers, covering their injuries or illnesses sustained while working.
3. Legal Expenses Cover: Helps with legal costs arising from claims and disputes.
4. Breakdown Cover: Provides roadside assistance and recovery services in case of vehicle breakdowns.

Factors Affecting the Cost of Private Hire Taxi Insurance

1. Driver’s Age and Experience: Younger and less experienced drivers generally face higher premiums.
2. Driving Record: A clean driving history can reduce costs, while a record with multiple claims or convictions increases premiums.
3. Vehicle Type: The make, model, and age of the vehicle significantly impact insurance costs. Newer, more expensive vehicles typically attract higher premiums.
4. Location: Urban areas with higher traffic densities and crime rates often result in higher premiums.
5. Annual Mileage: Higher mileage increases the risk of accidents, leading to higher premiums.
6. No Claims Bonus: Accumulating a no-claims bonus over the years can substantially reduce insurance costs.
7. Security Features: Vehicles equipped with advanced security systems may qualify for discounts.

Tips for Finding Affordable Private Hire Taxi Insurance

1. Compare Quotes: Use comparison websites to get quotes from multiple insurers and find the best deal.
2. Increase Excess: Opting for a higher voluntary excess can lower your premium.
3. Enhance Vehicle Security: Installing alarms, immobilisers, and tracking devices can reduce premiums.
4. Limit Annual Mileage: Keeping your annual mileage as low as possible can help lower costs.
5. Build a No Claims Bonus: Drive safely and avoid making claims to build up your no-claims discount.
6. Consider Specialist Brokers: Insurance brokers specialising in taxi insurance can often find better deals tailored to your needs.
7. Pay Annually: Paying your premium annually rather than monthly can sometimes result in discounts.

Applying for Private Hire Taxi Insurance

1. Gather Information: Collect all necessary details about your vehicle, driving history, and business operations.
2. Get Quotes: Use online tools or contact brokers to obtain and compare quotes.
3. Evaluate Policies: Consider the price and coverage limits, exclusions, and additional benefits.
4. Choose a Policy: Select a policy that best meets your needs and budget.
5. Complete the Application: Provide accurate and comprehensive information to avoid issues with claims.
6. Payment Options: Choose a payment plan that suits your financial situation, whether it’s annual, monthly, or another arrangement.

Legal and Regulatory Considerations

1. Licensing Requirements: Ensure you meet all local licensing requirements for private hire taxi operations, including vehicle inspections and driver qualifications.
2. Insurance Compliance: Regularly review your insurance policy to ensure it complies with current regulations and adequately covers your operations.
3. Documentation: Keep all relevant documents, such as insurance certificates and licences, readily available in case of inspections or claims.

Benefits of Private Hire Taxi Insurance

1. Comprehensive Protection: Covers a wide range of risks, ensuring financial security.
2. Peace of Mind: Provides confidence that you are protected against potential liabilities.
3. Customer Trust: Enhances your reputation as a responsible and professional driver.
4. Legal Compliance: Ensures you operate within the law, avoiding fines and penalties.

Frequently Asked Questions

Q: What is the difference between private hire and public hire taxi insurance? A: Private hire taxi insurance is for vehicles that must be pre-booked, while public hire taxi insurance covers vehicles that can be hailed on the street, such as black cabs.

Q: Can I use my private car insurance for private hire purposes? A: No, standard private car insurance does not cover commercial activities like transporting passengers for hire. It would be best if you had specific private hire taxi insurance.

Q: How can I lower my private hire taxi insurance premiums? A: Consider increasing your voluntary excess, enhancing vehicle security, limiting annual mileage, building a no-claims bonus, and comparing quotes from different insurers.

Q: Is public liability insurance necessary for private hire drivers? A: While not always mandatory, public liability insurance is highly recommended as it protects you against claims made by passengers or the public for injuries or damages.

Q: Can I get private hire taxi insurance if I have previous claims or convictions? A: Yes, but it may be more expensive. Specialist insurers or brokers can help find coverage tailored to your situation.

Q: What should I do if I need to make a claim? A: Contact your insurer immediately, provide all necessary details and documentation, and follow their claims process to ensure a smooth resolution.

Case Studies

Case Study 1: John, the Experienced Driver

John, a 45-year-old private hire taxi driver with 20 years of experience, drives a mid-range saloon car. By maintaining a clean driving record and accumulating a significant no-claims bonus, John enjoys relatively low premiums. He also installs advanced security features in his vehicle and opts for an annual payment plan to secure additional discounts. Through careful management of his insurance and driving habits, John keeps his operating costs manageable while ensuring comprehensive coverage.

Case Study 2: Sarah the Newcomer

Sarah, a 30-year-old new private hire driver, recently started working with a ride-hailing service. She drives a compact hatchback and has a limited no-claims bonus. Sarah uses comparison sites to find competitive quotes and chooses a policy with a higher voluntary excess to reduce her premiums. She also invests in security upgrades for her vehicle. Despite being a new driver, Sarah manages to find affordable insurance by leveraging available discounts and making informed choices.

The Future of Private Hire Taxi Insurance

1. Telematics Insurance: Usage-based insurance policies, where premiums are determined by driving behaviour monitored through telematics devices, are becoming increasingly popular. This can benefit safe drivers with lower premiums.
2. Pay-As-You-Go Insurance: Flexible insurance models, where drivers pay only for the coverage they need when they need it, are emerging. This is particularly useful for part-time or occasional drivers.
3. Digital Platforms: The rise of digital insurance platforms and mobile apps allows for easier management of policies, claims, and payments, enhancing the overall user experience.
4. Environmental Considerations: As the industry moves towards more eco-friendly practices, insurers may offer discounts or specialised policies for drivers using electric or hybrid vehicles.

Finally

Private hire taxi insurance is essential for any driver operating in this field, ensuring legal compliance and providing financial protection against various risks. By understanding the types of coverage available, the factors affecting insurance costs, and the ways to find affordable premiums, drivers can make informed decisions that best suit their needs. Staying informed about legal requirements and industry trends will help private hire drivers maintain comprehensive coverage and operate confidently and professionally. Always remember to compare quotes, consider additional cover options, and manage your driving record and vehicle security to optimise your insurance costs and benefits.