Which Type of Taxi Insurance Do You Need?

A taxi, also known as a taxicab or a cab, is a type of vehicle for hire with a driver, used by a single passenger or small group of passengers, often for a non-shared ride. A taxi carries passengers between locations of their choice.

Whether you’re a black minicab driver, an international taxi-app service, work for a local taxi fleet, having taxi insurance is paramount.

Types of Taxi Insurance:

There are two main types of taxi insurance; public hire insurance and Private Hire Insurance.

So, the question is which one you need and why? You need insurance for your taxi to protect yourself, your vehicle, your passengers and others around you.

If you won’t be covered, all it takes one accident involving you and/or a passenger to find yourself in a danger. Not only a single taxi driver wants to be out of pocket and out of a job, as this thing devastate one’s financial stability. A damaged vehicle can destroy your career, financial income, reputation as well as your livelihood. So, you don’t need to take a risk.

Let’s look at the type of taxi insurance you need depending on the type of vehicle you drive;

Public Hire Insurance:

Public hire taxi insurance is needed for taxi drivers and vehicles that can hail down the passengers directly from the street. For instance, the iconic black cabs in London. If you are going to provide this type of taxi service, you need to get this specific type of taxi cover.

Private Hire Insurance:

For private hire taxis or minicabs that pick the passengers who have pre-booked the vehicles at the defined point and time, need to get private hire taxi insurance. Private hire vehicles cannot pick the passengers directly from the street but only who have pre-booked their ride.

Both the services mentioned above involve the carriage of passengers for a fee. Your motor insurance policy (more specifically your insurance certificate) must state ‘hire and reward’ for you to be covered correctly.

Public Liability Cover:

As most of the jobs driving, dealing with passengers so the involvement of the public is part and parcel of daily life. So, the job is not without risks. Public liability insurance coverage will protect you and your company from any unforeseen incidents involving passengers in your car.

If you are not having passenger liability cover, it means you are personally paying the cost of a passenger’s injury claim.