RD

Tuesday, 11 October 2011

If You’re An Independent Mini-Cab Driver, You Need Taxi Insurance


The minute you decide to drive a mini-cab and offer the service of transporting people from one destination to another, you need taxi insurance.

This type of cover comes in the same basic packages as private auto cover, but don’t be fooled they are not the same.  You can choose to go for the very basic third party cover, whereby only the other vehicle involved in an accident caused by you is covered.  You can also choose third party, fire and theft, which is the same as third party cover except fire and theft to your vehicle is also covered.

It is obvious that these two basic protection plans are not sufficient to run a legal business.  You need to take your customer into account and your vehicle, without your vehicles you are unable to make money and the claim against you should a customer be injured in an accident can leave you in financial ruins.

Fully comprehensive cover is the only sensible way to go.  Cover yourself, your vehicle and your customer against any accidents which could occur.  Adding public liability cover to your policy ensures that any claims against you by your client is taken care of.

Be warned not all brokerage companies include public liability cover and if they do it may not be sufficient.  Take care and read the quotes carefully before making the wrong decision.

The premium price is decided according to certain factors.  One of the main deciding factors is where you run your mini-cab business.  Do you drive in a big city or are you transporting people along country lanes.  The city will increase your premium due to high risk.

Other price determining factors include your age.  If you are younger than twenty five years old you will pay high premiums, younger drivers are considered high risk with a majority of accidents on our roads being caused by younger drivers.

Your driving license plays a big part.  If you have a clean driving license with no convictions you can enjoy lower premiums than someone who has speeding fines and points removed for reckless driving.

The last deciding factor which you can use is your current personal no claims bonus. If your personal policy has a no claim bonus, you can use this to prove that you are responsible and lower your premium rates.

Taxi insurance is important for anyone wanting to drive a mini-cab, take the right cover and protect your business.

1 comment:

  1. If you are planning to open a business involving trade of cars, bikes or any other type of automobile then you need to know more about motor trade insurance. This insurance is typically designed to cover all the risk involved in motor trade business. In this article I am going to write about why you need motor trade insurance and how to get a cheap insurance policy.
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