Taxi insurance in London is a legal requirement for all taxi drivers in the UK, Insurance for cabs and your legal responsibilities go hand in hand when it’s to your living hood. Although it can be challenging, being a taxi driver requires not only the right vehicle and knowledge but also the appropriate insurance. If you make a mistake, you can find yourself off the road before you even shift into gear and release the handbrake!
Therefore, we’ve put up a thorough guide on taxi insurance, from legal requirements to industry insider advice to lower the cost of your policy, to ensure you’re checking all the correct boxes (and saving money on your premiums).
Firstly, let’s talk about the letter of the law. Your taxi must be insured, just like any other vehicle on UK roads. But be careful—if you want to use your car as a taxi, your regular auto insurance won’t protect you. If you read the fine print, you’ll discover that regular auto insurance doesn’t even cover your everyday commute. Therefore, you will need to speak with a taxi insurance broker who can help you discover appropriate auto insurance for business use, especially insurance that covers you when you transport passengers.
Firstly, there are categories.
These are the different “Hire and Reward” services you provide. And they will influence the kind of insurance you need to purchase. These are the different “Hire and Reward” services you provide. And they will determine the kind of insurance you require. The rules you must follow, and the level of “risk” your insurance provider will assign you. For taxi insurance in London, you should be aware of that
private hire & public insurance are the two main categories of taxi insurance:
Public Hire taxi insurance
This is intended for cabbies who pick up people at the side of the road or who do not have a reservation (such as black cab and Hackney carriage drivers licensed to pick up passengers without prior arrangement).
Private Hire taxi insurance
This applies to taxi drivers who are only permitted to transport passengers who have made prior arrangements and reserved through a licensed operator. Drivers are not covered by private hire taxi insurance for “hailed” fares or unplanned pickups. This includes limos, taxis, chauffeured cars, and corporate pickups (at airports, for example).
You should have third-party liability alone, third-party, fire, and theft, or, ideally, fully comprehensive coverage for both categories. Additional features, including breakdown coverage, are optional but not legally required.
Why is taxi insurance necessary?
Taxi insurance will not only ensure that you are legally able to operate as a taxi driver on UK roads, but it will also safeguard your interests if you put together a complete package of coverage. It gives you the assurance that, even if you get hurt. You will still be able to support yourself financially. It ensures that your legal expenses—which can be quite pricey—are paid. And it safeguards you from claims of injury or property damage in the event of an accident.
To apply for a license to drive a taxi. You must also have the appropriate taxi insurance (either private or public hire protection). Get in touch to get taxi insurance in London with Protect My Taxi.