Get Yourself Covered with Taxi Insurance

English: A black Taxi in London, UK Deutsch: Ein schwarzes Taxi in London, Vereinigtes Königreich (Photo credit: Wikipedia)

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If you run a cab business whether you work in the city or in a quiet village, you must get yourself covered with taxi insurance. This is a legal requirement in the UK and the mistake many cab owners make is believing that a private auto policy will protect them and their customer in the event of an accident.

If you offer the service to transport customers from one destination to another and you are doing so under a private auto policy, should you be involved in an accident, not only will your vehicle not be covered, but neither will your customers. This is a shocking truth that many cab companies overlook, but a private auto insurance only enables you to use a vehicle for private use, the minute you use it for business, your policy is null and void and you are left in serious financial trouble.

These policies are specifically designed for your industry. Besides being a legal requirement they are a necessity to ensure your business doesn't end up with a large financial bill which you cannot pay.

Your policy should cover your vehicle or vehicles comprehensively. This means that any damage caused to third party vehicles or property is covered along with repairs or replacement of your own vehicle.

The policy should also protect you in the event of an accident, this can include additional loss of income, which pays you out for the time you are unable to work. This may be while you wait for repairs to be carried out or if you need time to recover before returning to work. Loss of income is a wonderful cover to have, it ensures that you can continue to pay bills even while you are unable to work. This means your business can continue moving forward even without you behind the wheel.

Then there are your customers and you need to ensure you are covered to take them where they want to go. In the event of an accident whether it was your fault or not, you are responsible for protecting your clients. So public liability cover is essential to the daily running of your business and your policy can protect you against any claims laid against you for loss of income, medical expenses or mental distress.

What you will notice is that if you run your company in the city you will have a higher premium than the cab companies that run in the quiet countryside. This is due to the fact that your risk of having an accident in the city is increased as there are more vehicles on the roads. Always double check any taxi insurance policy to ensure that your entire business is covered and that it offers you the best protection when you get in your vehicle each morning.

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Does Taxi Insurance Differ Between City and Country?

-->Where you run your business will greatly affect your taxi insurance. If you are a one man show that offers a transportation service in the country you will pay less than if you were a black cab in the heart of London.

Many feel it unfair that the premium prices vary so dramatically depending on location, but in reality you will find a lot more accidents in London than you will in a small village area or town on the outskirts of the city.

There are other aspects that will influence your premium as well. If you are the sole driver for your company you will pay dramatically less than if you had a fleet of vehicles with a host of drivers. Each driver adds to the premium, so if you are a sole driver and need assistance, ensure that the driver you choose to help you has a clean driving license and is over twenty five years old, so they are not considered a risk to the broker.

The reason that drivers under twenty five are considered such a risk to brokers is that a majority of accidents on the UK roads are caused by younger drivers. You will also need to take your own driving license into consideration. In order to keep your premiums to a minimum to you will need a clean driving license, if you have a private no claims bonus from before you started your business, this will help reassure the broker that you are a safe and risk free driver.

Whether you work in the city areas or in the quiet and picturesque countryside, there is one more way to ensure you pay a lower premium. For companies that only transport planned drives, for example if you only accept transport for customers who phone in to book, you reduce your premium.

Companies that will pick up anyone on the side of the road and transport them to their destination is considered a higher risk. Now it's obvious that you cannot always control this, but if you try and ensure that you only transport planned bookings, it won't matter where you are located, your premium will be reduced.

Try and keep the number of drivers you have on the policy to a minimum even if you are a company in the heart of a bustling city. The less drivers you add, the lower your premium will be. Try and co-ordinate your drivers working hours to maximise their workload and reduce the number of drivers you need on a daily basis, this way you can enjoy reduced taxi insurance whether you are in the city or villages.