How do I get a taxi insurance quote?

Driving a taxi is challenging in its own right. You have to put up with endless amounts of traffic, unruly passengers, and your risk of getting into an accident is considerably higher. To make matters worse, the cost of insurance will also be significantly higher – a double whammy for those trying to make a living.

Taxi insurance is much more expensive than your typical car insurance for a few reasons. The main one is that taxis are on the road much more and clock up many more miles than usual, presenting a higher risk.

That’s why it’s essential to undertake a thorough taxi insurance comparison to find the best taxi insurance cover for your needs. This will ensure you have adequate coverage and you don’t pay more than you have to.

Therefore, this article will explore all things taxi insurance-related, such as how to get a taxi insurance quote, what levels of coverage you may need, how to lower your premiums, and much more.

How do I get a taxi insurance quote?

The best way to get a taxi insurance quote is to go through a trusted insurance broker who can negotiate the best deal for your exact needs. They’ll be able to do the heavy lifting for you by comparing taxi insurance quotes across the market to find a deal that gives you the most value for your money.

Alternatively, you can use comparison sites or call up each insurance provider individually. Whilst comparison sites and insurance providers can provide you with a quote online, you won’t be able to negotiate a better deal as they tend to have fixed prices.

Do I need taxi insurance?

Whether it’s a public or private hire taxi cover, taxi insurance is a legal requirement for anyone who drives a taxi for a living. Not only does taxi insurance protect the taxi driver, but it also protects the passengers in the car and the car itself during work hours. Public and private hire taxi drivers need to have a full taxi licence to apply for a taxi insurance policy.

What’s the difference between private hire and public hire taxi driver insurance?

Public hire taxi insurance is for taxi drivers who drive a vehicle which can be hailed in the street without pre-booking. Typically, these are seen as black cabs and hackney carriages, or any taxi you find waiting in a taxi rank outside airports, bus stations, train stations, etc.

Conversely, private hire taxi insurance is for taxi drivers who drive a vehicle that must be pre-booked. Examples of this are vehicles used in Uber and Bolt or taxis that are booked using your local taxi service. There won’t be a great deal of difference in the taxi insurance cost of each policy, but the coverage will be different.

What levels of insurance cover are there?

Often, many taxi drivers opt for cheap taxi insurance without considering what’s covered in their policy. This can result in paying more out of pocket in the long run, should an accident occur, which is why it’s best to compare taxi insurance policy’s beforehand.

There are three primary levels of coverage when it comes to taxi insurance. It starts with basic third party insurance, third party fire and theft, and finally, fully comprehensive coverage.

Third-party

Third-party taxi insurance will cover the taxi driver for injury and/or damage caused to members of the public. It is the absolute minimum level of insurance coverage that is needed to drive on UK roads. Whilst it will cover the cost of compensating claims made against you for injury and/or damages, it will not provide coverage for damages and repairs caused to the taxi vehicle itself. Those costs will have to be borne by yourself.

Third-party: fire and theft

In addition to the benefits of third party insurance, this insurance policy will provide you with cover if your car is damaged by fire or if it is stolen. However, it will not cover the costs of the taxi vehicle if it is in an accident on the road.

Fully comprehensive

As it is aptly named, a fully comprehensive insurance policy will give taxi drivers complete coverage. This policy will protect the taxi driver from damages and medical treatment in the event of injury and damage to the vehicle itself – this is as well as compensation for damage and injuries to third parties and fire damage to your vehicle or theft.

What else should taxi insurance cover?

Besides coverage of the vehicle itself and coverage you’d find in a basic car insurance policy, you’ll want to ensure your taxi insurance covers public liability insurance. Public liability insurance will cover you in the event that a member of the public makes a claim against you for injury or personal damages whilst in your vehicle. The costs to defend yourself and compensation will be covered with public liability insurance. Due to how costly a claim can be, it’s imperative that you have this coverage. Most taxi insurance policies will include public liability cover, but it’s a good idea to double-check this before taking out a policy.

In addition, you also want to ensure you have legal cover and breakdown cover since they can be handy. They typically don’t come as standard with a basic taxi insurance policy but can be bought as an optional add-on.

Why is taxi insurance more expensive than car insurance?

Taxi insurance policies are much more expensive than car insurance policy’s for a few reasons. The main one is that taxis cover way more distance than ordinary cars. A taxi may be on the road for 8-10 hours a day, whereas someone who is using a vehicle for personal use may only be on the road for 1-2 hours a day. This drastically increases the risk of being involved in an accident, which in turn increases the risk for insurers.

Also, since the job of a taxi driver is to carry passengers from one location to another, they may also be subject to personal injury claims if an accident occurs with a passenger on board which will hike up the cost. In addition to this, most taxis are bigger vehicles since they need to be able to carry a larger number of passengers. You will never see a tiny Fiat 500 being used as a taxi. Instead, you will often see a bigger vehicle such as a black cab or spacious saloon. This usually means that the vehicle will fall into a higher car insurance group, all of which results in higher premiums than regular car insurance.

How can I get cheaper taxi insurance?

When it comes to lowering your taxi insurance quotes, there’s a lot that is out of your control. But, there are a few ways to make sure you receive the most affordable insurance quotes possible:

Choosing your vehicle – The size of your vehicle will affect which insurance group is applicable to the vehicle. Strategically select a vehicle that is in a lower insurance group if possible. But don’t base your decision on this alone as you will have to factor in fuel consumption costs, build quality of the vehicle, etc. as wellHave a clean record – This is self-explanatory. Your insurance premiums will be higher if you have convictions and motoring offences. Limit these as much as possible to have a clean driving historyNo claims bonus – In tandem with the point above, if you have a stellar no claims record, your premiums will be lowerImprove security – Typically, this is in the form of CCTV in your vehicle, such as a dashcam. You can also improve the alarm system or install an immobiliserPay annually – Paying your insurance policy in a lump sum annual payment is usually cheaper than paying monthly

Who can get taxi insurance?

Taxi insurance is available to almost anyone with a taxi badge, but some insurance providers may require you to satisfy specific criteria before insuring you. However, you can typically get taxi insurance coverage if you:

Are between 25 and 75 years oldHave a public hire taxi badge or have a private hire taxi badge (even if recently acquired)Have motoring and driving convictions and/or claimsUse taxi services such as Uber or Bolt

Can I get taxi insurance if I am under 25?

Insurance companies deem younger drivers as much riskier than older drivers. This is also why car insurance for a recently passed 18-year-old is considerably higher than a 25-year-old who has had a driving licence for seven years. All insurance providers use a risk-based approach when assessing who they are willing to insure and how much they will charge, and since younger drivers are seen as riskier, they may not insure a driver for taxi insurance if they are below the age of 25.

Having said that, it doesn’t mean it’s impossible; it may just mean that your options for insurance providers will be limited. If you are 23 or 24 years old and have had your driving licence for a few years already, there may be a few insurers who are willing to cover you for taxi insurance. But, as mentioned earlier, you will be viewed as a higher risk than someone slightly older, and therefore your insurance quotes and premiums will be considerably higher.

Can I get taxi insurance if I’ve recently passed my driving test?

The chances are slim, regardless of age. As with young drivers, newly passed drivers are also considered riskier drivers by insurance providers. With the amount of time taxi drivers spend on the road, new drivers with limited experience pose a much higher insurance risk, and as such, it can be challenging to find coverage.

In the off-chance that an insurance company is willing to cover a newly passed driver, the premiums will be incredibly high and may not be a financially viable option.

FAQ’s

How many taxis are required for fleet insurance?

Fleet insurance will enable you to take out insurance policies for multiple vehicles at once instead of taking out a policy for each vehicle. Typically, three or more taxis are required for most taxi fleet insurance policies. It can make your life much easier, particularly when you have a lot of taxi vehicles. It may be possible to take out a fleet insurance policy even if you only have two vehicles, but you will have fewer insurance providers to choose from.

Do I need public hire taxi insurance or private hire taxi insurance?

This will depend on what type of taxi service you work in. Public hire taxis, such as black cabs, do not require pre-booking and can be hailed down by customers on the street. For taxis such as these, public hire insurance will suffice. For private hire taxis where you need to book the journey in advance, private hire insurance will be required.

Can I insure my taxi vehicle for personal use?

If you’re a registered taxi driver, the ability to use your vehicle for personal use will depend on your exact insurance policy. However, this usually isn’t a problem. On the other hand, if your partner wants to drive the taxi vehicle for personal use as well, typically, this won’t be allowed. This is because most vehicles that are registered for public or private hire can only be driven by people who are registered taxi drivers, regardless of whether the vehicle’s use is personal or not.

What types of vehicles does taxi insurance cover?

As with most policies, the exact coverage will vary depending on each insurance provider, but most insurance providers cover all types of vehicles – from saloons and black cabs to executive cars and multi-purpose vehicles.

How long does it take to get taxi insurance coverage?

You can start your taxi insurance coverage today if you require it to start immediately. Simply select today’s start date when filling out the details of your policy. Keep in mind that some insurers may only start your policy the day after payment has been made, so be sure to purchase your taxi insurance policy ahead of time to be safe.

How many drivers can I have under one policy?

Up to four drivers can be insured on a named drivers policy. This is where each driver has to be explicitly named onto the policy for insurance coverage to apply. The other option is to take out an authorised driver policy, which is where anyone who is registered as a taxi driver is covered under the policy. This is helpful for a taxi business that has numerous drivers and vehicles that are constantly in rotation.