Why Taxi Insurance Is Expensive Compared to Normal Car?

It is not easy to get the right taxi insurance as it is not as clear as getting normal vehicle protection. Getting insurance for your taxi requires you to think about your employment, passengers, yourself, just as people on pedestrian and passer-by.

taxi-insurance

In a big city like London, most of the taxi drivers want to get an affordable quote for Taxi insurance London. Before you go to get a cheaper policy for your taxi, you need to look at the importance, types and the cost of Taxi Insurance.

Importance of Taxi Insurance:

First of all, you need to think about why it is important for taxi drivers to have the right insurance for their requirements. According to the Road Traffic Act 1988, that states all drivers to be insured – with the third-party insurance being the legitimate least requirement. There are a few essential things that the taxi owners need to consider like choosing the additional items for your policy that may include breakdown cover and public liability insurance. You need to make sure as well that all the taxis in a fleet are protected. It is essential to get authorized by your local authority to work as a taxi.

Different Types of Insurance:

The type of taxi you drive will let you decide the type of insurance cover you require for your taxi. For instance, do you need a black cab or minibus insurance? Are you driving public or private hire taxi?

It is not simple to pick the type of insurance that can exactly meet your requirements. To drive your taxi legally on the road, you can get the cheapest insurance cover named third party cover. While the comprehensive cover protects you from all the collisions or accidents that you are liable for. To get the maximum insurance cover that you find will be the comprehensive insurance cover. Whether you are driving public or private hire taxi, public liability insurance is for any type of taxi you drive. It protects you from the liability claims you get from members of the public and passengers.

Cost of Taxi Insurance:

Usually, taxi drivers want to know why the cost of taxi insurance is higher compared to normal car insurance. This is because a taxi covers more miles than the normal car that is the reason for the increased cost of insurance for the taxi. However, the cost may vary from cheaper to expensive depending upon the type of taxi you drive.

Advertisements

4 Steps for Getting Affordable Car Insurance

Getting cheap auto insurance is one of the most vital activities a car holder engages in. The decision to approach a company and what insurance cover you have to purchase is very critical. In fact, insurance is about getting protection by an insurance company that ensures you to step in and put you back on your feet, if something goes wrong in the course of using your vehicle.

Young brunette woman in new car

In London, getting Cheap Motor Insurance can be very challenging especially to first-time car owners. To make this process smooth, we have distilled it into the following steps that may help you to get affordable insurance to meet your set of requirements.

Start Shopping Early:

Buying insurance for your vehicle is not an emergency expenditure. Though, failure to shop early may make it an emergency. It becomes illegal immediately to drive your car on the road as your current insurance lapses. It means that your new insurance policy must be ready before the current one elapses.

So, it is suggested to car owners and the ones intending to buy a car to start shopping for insurance early. Most often, the new car owners are susceptible to expensive auto insurance because of little market knowledge.

Understand the Basics of Car Insurance:

Another important factor is to understand how insurance works, especially motor insurance London. It is essential to understand the basic procedures such as; the process of placing a claim, when to place a claim, and all the legal & regulatory requirements that undergird motor insurance in your country. In certain circumstances, even experienced motorists get difficulty in handling their insurance concerns when it comes to choosing an insurance cover.

To understand the basics of car insurance, don’t only rely on friends who have many years of experience on the road for your insurance education. It is ideal to visit an insurance broker and get information from reputable sources to shore up your insurance knowledge.

Determine Your Needs:

One of the critical factors is to know what sort of cover you need for your car. All motor insurance covers come with certain basic elements complemented by product enhancements. For example, all cars in London must have a third-party insurance cover to protect other road users from the effects of an accident involving any car. Insurance policies also have a comprehensive insurance cover that involves aspects such as accidental damage and theft.

Shortlist Insurance Providers:

One way to get affordable insurance is to shortlist the insurance companies you want to deal with. In this case, you must know the claims settlement history of the company as well as the speed of services. How they respond to your queries will let you decide how efficient they are to provide the services. Though this is not a sufficient measure, it will let you know how efficient their operations are. Talk to the people around to know which companies they prefer and why. This will give you an idea to know about the insurance companies you can trust.

Difference Between Private and Public Hire Taxi Insurance

Beyond simple vehicle insurance, taxi insurance is something that all taxi drivers need to consider. Since your vehicle is your only source of income, so as a taxi driver it is vital to have the right cover to ensure that both you and your vehicle are safe to be on the roads carrying passengers at all times and you don’t have to refuse any business coming your way. Getting insurance makes you sure that your flow of income is regular.

Private Hire Taxi Insurance

Types of Taxis:

When it comes to Taxi Insurance, you will hold a license against two separate categories. These are public hire and private hire vehicles. A public hire vehicle is the type of taxi that is licensed as a hackney carriage and may be flagged down at the side of the road. These vehicles are the cabs that do not need to be pre-booked. However, a private hire vehicle often takes the shape of a typical car and are more common. Private hire vehicles need to be pre-booked first and cannot be hailed down at the side of the road. Uber is a typical form of a private hire taxi.

Both Private Hire Taxi Insurance and public hire taxi insurance include a level of cover that allows carrying members of the public and their belongings for a fee.

Once you’re the vehicle is insured your licensing authority will require a copy of your insurance certificate. So, it is vital that when applying for your license to your local authority, you are required to apply for the correct type of license.

Which Is More Expensive?

Generally speaking, public hire insurance is more expensive. Why it is more expensive is because of the reason that public hire taxi drivers rely on being in the right place at the right time to be hailed down directly on the road. For example, they are usually operated in busier areas such as; busy towns or city centers.

Statistically, drivers who operate in busy areas are likely to be involved in an accident, especially where quick lane changing to pick us a passenger is required.

Whereas, public cab drivers are more likely to pick up a scoundrel passenger who could potentially damage their taxi. These drivers may pick up a passenger drunk from a night out. Public hire taxi drivers often carry a large level of cash and are more likely to be targeted by the robbers.

Why Insurance Is Vital for Your High-Value Executive Vehicles?

Insurance is a means to protect your business to protect you from losses. Insurance for chauffeurs is specifically designed to cover drivers of luxury, high-value vehicles to carry passengers who expect a high class of service.

chauffeur-insurance

Traditionally chauffeur drivers are polite and discreet, smartly dressed in a dark suit wearing tie, boots, hats, and gloves. They will considerably open doors for passengers, will help their passengers in loading and unloading of their luggage and they have undergone additional driver training courses. A typical chauffeur/executive hire service does not have a base office instead they only offer pre-booked jobs offering their passengers with a limousine or executive type vehicle. These vehicles will either be pre-paid on an account basis or by credit or debit card.

If you’re running a chauffeur business that is more often to carry passengers on a contract basis in a higher value vehicle you need to look for Chauffeur Insurance policy that is tailored specifically to your business. This will keep you hassle-free about replacing your vehicle at a cost that could affect your business.

Why you need Insurance for your Executive Vehicle?

If you are the owner as well as the of an executive hire vehicle, with the passing days running costs of your vehicle can be expensive. This is why insurance for your chauffeur car is vital for your business. Without an appropriate cover in place, the costs could have a massive impact on your business’ finances when you need a high-value executive vehicle. Hiring a specialist chauffeur insurer, you are guaranteed to get a fully licensed replacement vehicle that seems attractive to many taxi and chauffeur service providers.

Airport pickups, corporate travel, wedding car hire, and various other chauffeur businesses commonly use executive vehicles such as Mercedes’, Bentley’s, BMW’s and other executive vehicles which make the need for the right insurance policy even more important.

How Insurance is important for your Executive Vehicle?

As a driver of any vehicle, the need to be protected is the essential requirement. Critically, when you are driving a high-value executive vehicle, ensuring that you’re comprehensively covered becomes even more important. If you do not have a chauffeur or executive hire insurance, your high-value vehicle won’t be fully protected from any accidents or potential collisions on the road. After getting the right insurance cover, drivers will be at complete peace of mind that they and their passengers are safe while making pickups & drop-offs, no matter what.

Things You Need to Know About Chauffeur Insurance

For most chauffeurs, driving is the only source of income. You earn when your vehicle is on the road and the days when you are off the road, it means the lost income. The worst thing is that else of losing income, this thing spoils your reputation and thus your long-term clients get affected. However, getting insurance protects you at the moment when your vehicle come across an accident and you need your vehicle to be repaired.

Handsome man holding car door for beautiful businesswoman

Insurance provides you with the vehicle of the same class when yours is being fixed. This makes you able to continue your work when your usual car is at the repairing center.

If you got fractures while driving and are not able to drive for a certain period of time then disruption of earning insurance/ personal accident cover will help you to give a cash payout, that makes you able to still pay your bills.

If you are driving high-class luxurious vehicles i.e. chauffeur cars there are some points you need to understand about insurance for chauffeur vehicles;

Difference B/W Chauffeur Insurance and Private Hire Insurance:

Chauffeur Insurance is a type of private hire insurance that allows you to meet the legal requirements for insurance that ensures you to cover advance fee-paying passengers. Insurance for chauffeur vehicles has been devised to meet the specific demands of chauffeurs who are driving the luxury vehicles from the elite Rolls Royce to the Mercedes V-Class van.

If you drive passengers somewhere for money, standard car insurance won’t be valid even if you’ve declared the coverage for business use. For the passengers who have pre-booked your vehicle, for that you need private hire vehicle insurance.

Different Types of Covers:

There are various types of insurance covers that are based on your requirement as well as the budget you can afford. However, every cover is very how designed to give you financial peace of mind if something wrong happens. For instance, private hire vehicle insurance coverage may include; public liability insurance, commercial buildings insurance, breakdown cover, prestige car fleet insurance, legal expenses cover, and personal accident cover, etc.

Do Search for Insurance Companies:

While looking for insurance the company, you may find the one that is specialised in taxi insurance or private hire vehicle insurance and maybe they are not comfortable with modified or high-value vehicles like yours. That means a higher premium price! As a result, having an insurance company who understands the risks of being a chauffeur will make you better able to secure a better-priced deal.

What Type of Taxi Insurance Is Best for You?

Choosing the right taxi insurance is not that straightforward as finding regular car insurance. It can be quite daunting as to get the right insurance cover you need to consider a lot of factors such as; you, your livelihood, passengers, pedestrians and passers-by.

chauffeur-insurance

A specialist taxi insurance broker is highly experienced in pairing their customers with insurance as per their needs and requirements. Policyholders require them to find a deal within their budget ensuring that they are getting the right cover with the additional products they require.

Here, we have compiled some essentials that you need to consider when deciding the type of insurance that is right for you;

Different Types of Insurance:

Which type of insurance you want to choose for your vehicle is not that simple of picking the one that coincides with the name of your operations. For example, Chauffeur Insurance demonstrates the type of policy catered towards an executive model such as; BMWs and Jaguars differ widely from what is required from a standard private hire vehicle.

The type of taxi you own or the one you are in charge of will determine the type of insurance you need. For instance, are you a public or private hire taxi driver? Do you need minibus or black cab insurance?

Why Is Taxi Insurance So Important?

It is immensely vital to consider that’s why it’s so important that taxi drivers must have the correct insurance for their needs. All motorists need to be insured with third-party insurance being the minimum legal requirement, according to the Road Traffic Act 1988. With the blanket requirements obligatory for every driver, taxi drivers need to consider few other things involving; drivers are licensed by the local authority, all taxis in a fleet are insured, and deciding what add-ons you want for your policy.

What type of taxi you drive, your vehicle is an asset to you. Protecting it by getting the right taxi insurance as per your needs is clearly of the topmost importance. Anyhow, accidents and passenger injuries may occur at any time, so it is vital to check that taxi insurance covers all the eventualities including; vandalism, fire, theft, personal injury, third-party liability, accidental damage, as well as damage to property.

How Much Does Taxi Insurance Cost?

What type of taxi insurance you choose will ultimately determine how much it will cost. It also depends on the factors like; safe driving, how much miles you do cover, location, safety devices, and no claim bonus. This factor impact largely on the premium price you’ll pay.

What Is the Role of Chauffeur Insurance in A Community?

Insurance is a way to protect your business from any sort of financial losses. An organization or the person who gives insurance is known as an insurance company, insurer, underwriter or insurance carrier. And the person who buys or takes insurance is known as a policyholder.

chauffeur-insurance

Taking car insurance is a lawful obligation and it protects you from various losses. In the event of your car being dented, an insurance cover will protect you from the financial defines. During the happening of the accident, it is responsible to cover for wounds to other chauffeurs, pedestrians or travelers, and their belongings. Insurance is held liable to support you from financial damages, in the event of an accident.

What if I’m Not Insured, Insured and Indemnified?

Driving without car or chauffeur’s insurance is against law and you will be charged a fine if you don’t have Chauffeur Car Insurance for not being associated with an insurance policy. You will not have to pay just fine, but you can also be penalized or prohibited from driving. You have to pay a heavy fine and you may also get six to eight penalty points on your license which is not good from the criminal viewpoint. At present, the Government is trying to revise fines for uninsured chauffeurs who killed or caught in accidents. Police are also liable to abolish or grasp any vehicle being driven without protection.

Cost of Car or Chauffeur’s Insurance:

Your insurance premium is based on a number of factors including your age limit, location, and which car are you driving? Your business or profession, where will you keep your car when you will not be using, and were you found guilty in any condemned motor crimes? By compensation a higher surplus, you can lower your premium, that is the amount you have to interject by balancing a claim you create.

No-Claims Bonus:

you won’t get a due on your chauffeur’s or car insurance for every year if you make no claims. Earning a no claim bonus up to 10 years can give you discounts up to 75%. In addition, if in an event of an accident that wasn’t your mistake, this will protect you from any losses. You need to warn your broker about the accident you’re involved in, even if you don’t attain a claim.

Why is Insurance Necessary?

Insurance is necessary as it covers the cost of your vehicle that has caused injuries or damages to the drivers, pedestrians or passengers. According to the Road Traffic Act 1988 of London, all chauffeurs must be protected in contradiction of their responsibility to other individuals. Hence, Chauffeur Insurance is the biggest caring hand behind you if you get involved in an accident. Insurance may also provide financial care if your car is destroyed or demolished by fire or even stolen.