If you’re a new taxi driver or a seasoned pro on the road, you’ll appreciate the benefits that come along with having taxi insurance. Taxi insurance isn’t just a legal requirement that you have to comply with as a driver. It serves a major purpose, primarily for your protection. 

In the following section, we’ll cover what you need to know about taxi insurance. Keep on reading to learn more.

Taxi insurance in a nutshell

Taxi insurance is a specialist vehicle insurance policy designed to cover you and your car used for commercial hire. As your car is essentially your business, comprehensive insurance is vital to protect your livelihood. Just a regular car insurance policy will not be enough to protect you, your car, and your customers. If you drive a taxi for a living, having taxi insurance is a legal requirement.

Types of taxi

As it is a legal requirement to have a valid taxi insurance policy, you will need a specific insurance policy depending on the type of taxi you drive, as follows:

  • Public hire taxi: This type is a taxi which can be hailed by customers on the street and doesn’t need to be pre-booked. It typically has a taxi sign, which includes London black cabs. Know that you will only be covered for picking up customers without a booking.
  • Private hire taxi: This type has to be pre-booked, such as most minicabs and large multipurpose vehicles (MPVs). You will not be covered for picking up customers without booking from places like train stations or taxi ranks.

Eligibility requirements

There are eligibility requirements that come with obtaining taxi insurance. Most insurance providers will cover you on the following basis:

  • You have lived in the UK for at least five years
  • You have held a valid driving license for at least three years
  • You work as a taxi driver full time only with no other jobs
  • You are over a certain age (usually 21 years old)
  • You have held a taxi badge for at least 12 months
  • You have passed the Driving Vehicle Standards Agency (DVSA) taxi driving test 

Other cover options for taxi insurance

In most cases, taxi insurance covers the same levels of protection with standard motor coverage. However, other coverage options specific to taxi insurance may include the following:

  • Public liability insurance: This type protects you if a customer suffers a personal injury or property damage while in your taxi. 
  • Personal use cover: This type covers you if you plan to use your taxi for daily personal use and not for work.
  • Unlimited mileage: This type covers you for driving a large number of miles each year. This will ensure you won’t be charged for driving too much.

Tax insurance cost

It’s worth knowing that taxi insurance is a bit more costly than standard coverage due to the following reasons:

  • Driving more miles each year
  • Carrying more passengers
  • Sizing larger than average cars

The best way to find affordable insurance coverage is to shop around and compare quotes. To reduce your premiums, consider the following:

  • Building up a no claims history
  • Choosing a sensible vehicle 
  • Installing security features (such as CCTV)

At this point, you now have the knowledge about what taxi insurance entails. It’s best to look for the right insurance carrier and the best taxi insurance coverage, lest you’ll end up paying for the excess. That said, we recommend that you obtain taxi excess insurance as well, so you won’t have to pay for any excess at all when you make a claim.

If you’re looking for taxi excess insurance in the UK, get in touch with us today to see how we can help.