What is taxi insurance?
Taxi Insurance is a type of specialist cover for taxi drivers. Standard motor insurance is legally required for all vehicles on the road, however if you are carrying passengers, you will need taxi insurance. The type of cover you need depends on your business. If you are picking up passengers without pre-booking, e.g. passengers hailing a cab, then you will need public hire insurance. If your passengers are all pre-booked then private hire insurance would be suitable.
It is essential for all businesses to have the correct type of insurance and this could not be truer when it comes to taxi drivers or taxi company owners.
Why is taxi insurance more expensive than standard insurance?
In general, prices of taxi insurance policies are calculated based on levels of risk; as a taxi driver you will be on the road for longer than your average driver, you will often be working on congested roads as well as driving during unsociable hours and your vehicle could be larger than a standard vehicle which will place it up a higher insurance group.
All of these factors can contribute to increasing the cost of taxi insurance policies. However there are a number of ways that you can finder cheaper taxi insurance.
How to save money on your taxi insurance
Multiple quotes: Take the time to compare quotes. Quote Goat make this easy by giving you access to a leading panel of taxi insurance specialists, provided by our partners at Seopa.
Do not auto-renew: Compare taxi insurance quotes each year to see if you can make a saving or to ensure that you are not over-paying for your cover when you renew your current policy.
Lower insurance group: As mentioned above, the insurance group that your taxi belongs to can have a big impact on insurance costs. When it comes to buying a taxi, pay attention to which group it belongs too.
Avoid convictions: All types of convictions can push up insurance costs, both non-motoring and motoring, so it pays not to speed, use your mobile or commit any offence that will need to be declared to your insurance provider.
No claims discount: Building up a no-claims bonus can have significantly reduce the cost of insuring a taxi.
Comparing quotes for taxi insurance
Taxi insurance costs can vary significantly between insurance providers so it pays to shop around. Whether you need Black Cab insurance, Mini-cab insurance, Uber insurance or cover for another vehicle that transports passengers, you will need to have the right cover in place to protect yourself and your business.
Finding taxi insurance is easy with Quote Goat. Take just a moment to fill out the quote form and see how much you could save. If you have not yet looked for cheaper taxi insurance, have a go now.
If your business owns a fleet of taxis you can also compare taxi fleet insurance.
Types of taxi insurance policy
There are three main types of taxi insurance to choose from when it comes to a private hire taxi: policy-only, named driver and any driver.
Policy-Only: typically the cheapest level of cover, with the cost increasing for each name that you add to the policy.
Named Driver: Insurance for a taxi driver purchasing their own policy covering just themselves.
Any Driver: As the name suggests will cover any driver using your taxi.
As well as these three types of taxi insurance, you will also need to choose whether you have third party only, third party, fire & theft or fully comprehensive cover; just as you would for a standard motor insurance policy.
Third Party Only: The minimum level of insurance required by law, covers you for damage or injury to 3rd party property and 3rd parties if you are deemed to be at fault. Third party will not cover damage to your own taxi or yourself.
Third Party, Fire & Theft: Covers the above as well as the cost of replacing or repairing your taxi should your taxi be stolen, damaged during an attempted theft or as a result of fire damage. It is important to note however that your claim may not be paid out unless you adhere to your policy’s terms which for example could include not paying out for theft if your vehicle was not properly secured.
Fully Comprehensive Taxi Insurance: The most complete level of cover which will usually everything above as well as damage to yourself or your taxi in the event of a claim, if it is your fault. Fully comprehensive policies may also include optional extras such as legal protection, which you can decide whether you require or not.
Taxi insurance extras
Legal cover, breakdown cover and public liability insurance are all optional extras that you may wish to include with your policy. We have listed a few other extras below to help you decide if you require any of them.
Damage to windscreen: can often be incorporated into a taxi insurance policy, however it is also known to come as an optional extra
License loss: it is possible to get protection in case you lose your license, paying you an income for a period once the license is taken away
Home assistance: assistance if you break down or your taxi will not start at your home
Ongoing transfer cover: assistance for passengers who need to carry on with their journey if your taxi breaks down
Public liability: protecting you against claims made by members of the public for injury or damage
Breakdown Cover: insurance to cover the costs of a breakdown
Non-taxi use: coverage for your own use of the taxi out of working hours can also be provided by some providers and is subject to your licensing authority’s rules.
Legal assistance: cover against legal fees and losses incurred as a result of an accident that was not your fault
If you are unsure about whether you require these, you can discuss this with the taxi insurance specialist that you speak to when getting a quote.
Including these covers in your taxi insurance policy may not always be the cheapest option, so it might be worth your while checking individual quotes for these products.
What information is required to get a quote?
Getting a quote is quick, free & easy. The information you will need to hand includes:
Taxi Details: Make and model of your taxi or registration plate, type of taxi, type of use and approximate vehicle value.
Cover Details: Level of cover, no-claims bonus details for your taxi and a private no-claims bonus if applicable. How long you’ve held your taxi badge, who will be driving and details of any claims or motoring convicting in the last 5 years.
Your Details: Your name, address, date of birth & contact details.