Read the most frequently asked questions about taxi insurance policies; see the answers, compare quotes and find the best deal to suit you.
How do I know if I need taxi insurance?
Taxi insurance is a specific insurance for any person who drives a taxi as part of a business or self-employment; it makes no difference if the cab is for private hire as in the case of a minicab or for public hire such as a black hackney carriage.
You will not be covered for your taxi by standard car insurance. This is the case even if your standard car insurance policy covers you for business use. For more detail, read our beginners’ guide to taxi insurance.
Will taking out taxi insurance cost me more than standard car insurance?
It is probable that you will pay more for taxi insurance premiums; this is because car insurance companies will view your vehicle as being at a greater risk of an accident. It will therefore charge you for this with a raised premium.
Is there a difference between private and public hire insurance?
Yes. Private hire vehicles or min-cabs cannot be hailed on the roadside as they drive past or in a taxi rank. You have to pre-book a private hire taxi.
Public hire vehicles are licensed by the Council to pick up fares on the street and at taxi ranks. They are differentiated as being black cabs, hackney carriages and other vehicles.
Each of these category types has a different risk level attached to it; When taking out a policy for taxi insurance, factors such as location, age and mileage per annum are likely to be taken into account.
What are the options available?
As with standard car insurance, there are the usual comprehensive, third party only, third party fire and theft options. After this the choice of policy is due to having a named driver or an all-driver policy, or a policy-only deal.
If you are an individual driver, requiring cover only for yourself and your vehicle, a named driver policy may be the best choice.
Whilst a policy-only option might be cost effective, if you own a fleet or have several drivers to add to your policy, an all-driver policy is likely to give you better value for money.
Are you aware?
- Taxi insurers are usually located within local boundaries. Each insurer will cover a designated area of a city or locality.
Are there any ways to lower my premiums?
Most car insurers will favourably take into account a record of careful driving and a strong no claims history. If you look around and compare prices you can usually find a cheaper deal to suit your needs.
If you have certain security measures in place such as CCTV cameras, you may get offered a discount on your premium.
For those who have a high annual mileage, you might find an unlimited mileage policy is more favourable. It’s wise to be accurate with the estimated annual mileage figure you give and be on the correct policy for optimum cover at the best price.
Is it possible to get a policy that covers me in Northern Ireland?
Taxi insurers usually cover a regional area only such as the boundaries of a certain county area or city; for an area that might be considered a higher risk, it can be tricky to find a good insurer for an area they consider to be high risk.
Freepricecompare.com has taxi insurance company choices for the whole of the UK except Northern Ireland; however some insurance providers will cover this area and it’s worth keeping an eye out for more offering this option.
When can I use my no-claims bonus (NCB)?
When you go through Freepricecompare.com and compare quotes, one of the questions you’ll be asked is how many years of NCB you have accumulated. It will also be necessary to say whether this is on a private hire, public hire, company or privately owned vehicle.
For those with long no claims records, many insurers will offer a discount. If an NCB is being taken up on another vehicle you will not have the option of transferring it. However a clean history of driving is worth mentioning to the insurance company.
How does disability access into my taxi affect my cover?
Your insurer will ask about any modifications to your vehicle when working out a quote for you. It’s important you mention any ramps, extra safety straps or other items at this time in order to give you an accurate quote.
What about larger vehicles used as a taxi such as MPVs and minibuses?
When your quote is being calculated, inform the insurer of the type of vehicle you wish to insure and the number of seats. They will probably ask you about maximum passenger load. This will be specified in your policy and it’s important to make sure this is accurate or you could risk invalidation of your cover.
In the process of comparing quotes through Freepricecompare.com it will highlight if any of the available policies include such items as public liability insurance, breakdown and windscreen cover and legal assistance.
Is public liability insurance necessary?
You may find that this is an integral part of your policy cover but you will need to verify this. Public liability insurance will protect both yourself and your customers and is important to have in place.
If it is not included in your cover, you need to either take out a separate policy or ask the insurer to add it on as an extra. As you go through the Freepricecompare.com site, you should be able to ascertain what cover is included.
Is a DVSA qualification necessary to get taxi insurance?
This is variable. In some areas, councils will stipulate a DVSA qualification† in order to offer your taxi service in that area. The best thing to do is wait until you go through the comparisons for a quote, as you will be asked if you have a DVSA qualification.
What about if I want to use my taxi for personal use when I am not working?
It is best to check this out with the insurance company to see if they cover both personal and business use.
Will the insurance cover include family members driving my taxi?
It is advisable to check with your local authority first if they allow unregistered drivers to be driving a registered taxi. Your insurance company may well allow a partner or family member to drive the vehicle as a named driver but council permission may need to be sought as well.
For answers to any further questions, see our taxi insurance guides.