If you're new to the world of taxi driving, it's important to make sure you have all of your paperwork in order before you take to the road.
Unfortunately, as taxi drivers require tailor-made insurance packages, that means you have to go outside the normal insurance system to find cover for your vehicle.
Luckily, it's a fairly stress-free process, and it doesn't have to leave you out of pocket before you've even started earning. Here's our guide on how to ensure everything goes smoothly.
How do I look for taxi insurance?
Not all insurance companies are prepared to cover taxis - so it's important you dig around yourself to find an insurer that will meet all of your requirements.
A good starting point is to use comparison websites such as GoCompare, who will aggregate offers from various companies and help you find a quote that works for you.
Keep in mind, however, that there is still no substitute for your own legwork, and in some cases it's beneficial to speak directly to an insurer to see how they match up with your own expectations.
Below are a few companies to look out for along the way:
Carries both private and public insurance, with a maximum liability of £10m. Currently offering generous introductory offers.
Also offers private and public with liability of £10m. Promises instant quotes if you enquire online.
Plan Insurance Brokers
Covers variety of vehicles including both black cabs and chauffeur service limousines. Also business-friendly, with emphasis on keeping you on the road.
Cover My Cab
Promises rates you won't find anywhere else, with manageable installment plans offered over pricey lump sums. Claims process open round the clock.
What sort of prices can I expect?
The reality is that even though taxi drivers are generally more experienced on the road, they can expect to pay higher insurance premiums.
This is because they are typically on the road for much longer than anyone else, often driving round the clock instead of just a couple of hours per day.
Taxis are also often bigger than the average car, owing to the fact that they have to carry more passengers and cargo.
The price you pay will depend on the size, as well as the area in which you drive and, naturally, your own record on the road.
A good way to keep your prices down is to take advantage of any start-up offers, shop around instead of automatically renewing at the end of each billing cycle and, if you can, get a smaller taxi! Black cabs look nice but they are bulky and often expensive to insure.
What types of insurance are available for taxis?
The two basic types of taxi insurance are public and private, with the former aimed at cabs which are hailed from roadside, and the latter those that are booked in advance by a person or group of people in need of long or medium haul transport.
The categories can also be broken down into the different types of policies available.
One example is a named driver policy, which is suitable for taxis which will only be driven by one nominated cab driver instead of rotated around a fleet.
The other policy is any driver - whereby anyone under your employ can be covered to drive the taxi.
To nobody's great surprise, the latter is far more expensive as you're having to cover people with a different range of road experience and driving skill. This is why it's important, if you are running a multi-person business, that you vet prospective employees before hiring them.
What is included in taxi insurance
- Roadside assistance and recovery
- Public liability cover
- Money cover
- Personal accident cover
- Bonus protected from one year onwards
There may be more extras added but this is the basic package of taxi insurance.