Private hire insurance:
Private hire insurance is a kind of insurance that will protect you and your vehicle, and you will get a license through which you can pick up passengers who have pre-booked their seats. Unlike public-hire taxis, private-hire insurance will not allow you to pick up passengers from designated stations from the side of the road.
There are some examples of private hire insurance, like Uber, minicabs, etc. These taxis are generally run through a system that a passenger can pre-book.
If the driver is running a private-hire taxi, then he must be driving most of the day. It also means you are spending most of your time on the road, which will increase the chances of risk associated with it. That is why you should get private-hire taxi insurance. It will protect you, your vehicle, and your passengers.
What does private-hire insurance cover?
Most of the time, private-hire insurance covers three offers.
Third-party only:
Basically, it is the cheapest level of cover that will give protection to those who get injured or their property gets damaged in an accident. Third parties will only cover any costs for inducing damage to other vehicles or property up to £5 million. You will also have legal liability if you cause death or injury to other people.
Third-party fire and theft:
This is pretty much the same for the third party only, but the only difference is that you will also get coverage for third-party fire or in case of some attempt at theft.
Comprehensive:
It will include all the above and provide coverage for damage to your vehicle. There is cover for injury in case of any. You will also get cover for fire damage, theft, and if your vehicle gets damaged or its spare parts get stolen. You will also get coverage for the windscreen.
Policy duration:
There is a monthly policy as well as an annual policy. The monthly policy will be good for you if you want to get cover for your work or free time. As far as the annual policy is concerned, it will be good for you if you want to run your vehicle long-term. There is an option for installments as well.
Criteria for getting private hire insurance:
- You should have a private hire license.
- You should have a UK or European driving license.
- You must be aged between 21 and 75 years.
- You should have had less than three fault claims in the last three years.
In addition to the private hire insurance, there are some insurers who also give you add-ons that you can buy that are associated with your policy, and these are:
Breakdown cover:
It will help you get on the road if your vehicles break down on the road.
No-claim bonus:
If you are driving safely and have had no accidents in the past few years, it will also help you lower your premium.
Replacement vehicle:
If the driver is involved in an accident in which he is at no fault, then he will get a replacement vehicle.
Is private-hire insurance too expensive?
Yes, there is no denying that private hire insurance is expensive and will cost you more to insure, especially when you are comparing it with a personal car. There are some reasons, like that taxis are most of the time on the road, along with higher mileage when compared with a personal car. It is obvious that if you are on the road most of the time, then the chances of involvement in risk will also increase.
These are the reasons the insurers charge higher premiums for private-hire taxi insurance.
How do I get the right insurer with the right policy?
When you are trying to get the best insurance, the first thing is that you should compare your insurance plan with different sites online. Online sites will offer you access to a wide range of insurance providers. It is an easy and fast way to get the right insurer for you.
After you have a list of all possible insurers, you should discuss their plans with the companies. You should be easygoing and comfortable with the company to get the right cover for you.
