Tax & Private Hire Insurance FAQ’s
Welcome to Insure Your Taxi FAQ page. On this page we have attempted to answer some of the most commonly asked questions about the Taxi Insurance industry. Look out for all of these issues before you get a quote for Taxi Insurance.
- What impact does mileage have on the price of taxi insurance premiums?
Although insurers will require an estimated annual mileage at the quotation stage, most insurers will not increase the mileage past a certain point. If you are unsure on how many miles to submit, try breaking this down to miles per day or week. There are usually no penalties for a slight underestimation.
- Can I add a named driver to my taxi insurance policy?
Named drivers can be added if they are also licensed taxi drivers. The exception is your spouse. A spouse can be included on your policy for social, domestic and pleasure.
- Does the area in which I operate my taxi have an impact on the price of my premium?
As with any type of insurance policy, one major rating factor is location. Whilst some insurers will base the cost on where you live, others will have varying rates for the area you operate and/or your local licensing authority.
- Will I need public liability insurance to take out a taxi insurance policy?
This requirement will depend on both your local council’s requirements and the type of bookings you intend to carry out. It is recommended you check with your local licensing authority before purchasing your taxi insurance.
- Can I use my taxi outside of working hours?
Yes. When you purchase a taxi insurance policy, the vehicle will be insured for hire and reward and for personal use. However, this is for the policy holder only.
- Will having CCTV in my taxi reduce my taxi insurance premium?
Some insurers will apply a discount to your premium if CCTV is installed in your taxi. However, as not all insurers will offer reduced rates, you can often find CCTV does not impact your premium – it does of course still present an increased level of safety for drivers.
- How does the price of taxi insurance compare to car insurance?
Although tax drivers will usually pay more for their taxi insurance than for a private car policy due to additional risks associated with carrying passengers, most taxi drivers are experienced drivers which will be reflected in the premiums. The average taxi insurance policy does not to tend to cost much more than the average private car insurance policy. Here at Insure Your Taxi, we go to great lengths to devise competitively-priced policies, utilising our large pool of brokers in order to obtain unbeatable rates.
- Can I make use of my no-claims bonus (NCB) when searching for taxi insurance?
Taxi insurance companies will always provide various levels of discount of No Claims Bonus. If you are looking to take out your first taxi insurance policy, some insurers will offer an introductory bonus for drivers that have either NCB on a personal car or have been insured on a taxi firm’s fleet policy. If you do not have any NCB but have any claim-free driving experience, it is certainly worth mentioning when obtaining a quote.
Taxi Insurance Variations
- I have a DR10, can I still get cheap taxi insurance?
Yes. Some insurance companies within our network specialise in drivers with convictions. In most instances a DR10 will mean it is more difficult to obtain a taxi licence than a cheap insurance quotation. As long as your local licensing authority are satisfied and grant you a licence, your conviction should not harm your ability to obtain a cheap insurance quotation.
- What levels of cover are available for taxi insurance?
As with private car insurance, there are three basic levels of insurance cover available to you; Third Party Only, Third Party, Fire & Theft and Fully Comprehensive. Most insurers will be able to provide a cost for all three levels if requested. You will again need to speak to your licensing authority beforehand as some require all drivers to have Fully Comprehensive insurance policies.
- Can I pay for my taxi insurance monthly?
Most insurers understand the need to pay monthly for your car insurance and is almost always an option. If you plan to pay monthly, you will need to be conscious of varying interest rates, therefore the cheapest premiums do not always represent value for money. When you are looking to pay monthly we recommend you obtain the costs both with and without interest.
- What are the benefits of a telematics taxi insurance policy?
From an insurance point of view, the obvious benefit is cost. Telematics, or ‘black boxes’ will be offered with a reduced insurance premium. There are, however, many other advantages to having telematics included. For example; if you were to have an accident, te data from the box can sometimes be used in your favour as evidence of your location and travelling speed.
- Can I create a taxi fleet insurance policy?
Yes. Insurers will have a qualifying criteria to follow, so before obtaining a quotation make sure you have information of all vehicles and drivers to hand. Fleet insurance can be a great way to savemoney when insuring more than one taxi.
- What is public hire insurance?
Public hire insurance is required for all Hackney Carriage vehicles, or ‘black cabs’. They do not require an advanced booking. You can flag down a black cab from the roadside.
- What is private hire insurance?
Private hire insurance is required for taxi drivers working only as a private hire driver. Private hire is defined as a hire and reward service that must be booked in advance.