Taxi insurance is a prerequisite if you are in the taxi business, since this business entails liability not only for the owner but for the passengers and other road users as well. Whether the taxi is used for private or public hire, is owner operated or part of a fleet, insurance is a must before you hit the road. Taxi insurance costs much more than private car insurance because it also compensates for the injury caused to the passengers and protects the taxi owner from liability if the accident is not caused due to the fault of the driver. Besides, a taxi is on the road for a longer period than a privately owned car.
Cash cover is available for public and private hire cabs, for breakdown, windscreen damage and loss due to accidents. Replacement cab facilities are also available in case your taxi is not in a workable condition after an accident. The insurance company is liable to pay for your legal expenses if you are sued by the passengers or other road users. Insurance companies also frequently come up with bonus earning schemes.
Types of Taxi Insurance
- A third party policy gives cash cover for the damage you have caused to others with your taxi.
- Third party fire and theft policy gives you coverage for third party damage that you’ve caused and compensation for the damage caused to your taxi due to fire, explosion or theft.
- A comprehensive policy gives you cash cover for any theft, fire, vandalism or damage caused to your taxi in an accident, irrespective of whose fault it was.
How to derive Maximum Benefit from your Taxi Insurance?
- If you drive your taxi for personal use as well, it is advisable to have a fully comprehensive policy.
- When your taxi is damaged, you need cover not only for getting it repaired but for the lost business as well. Get a Business Interruption Policy to insulate yourself from losses caused due to lost turnover.
- Public Liability Insurance will give you protection not only from your employees but also from third parties who have suffered injury or damage due to your taxi.
- You can get your premium considerably reduced if the number of drivers on your taxi is restricted. The premium is lowest if the taxi is owner driven. Policies that give coverage to a driver have higher premium due to higher risks involved.