Third Party Liability and Legal Expense Liability for Taxis


It is common knowledge to taxi drivers that taxi insurance differs significantly from normal car insurance. Even though you are still driving the same type of cars, along the same roads, at the same speeds and in the same conditions, insuring the taxi will cost significantly more than insuring an identical vehicle that is only being used for private use. The reason for this is the public liability aspect of being a taxi.


Public Liability


All businesses that deal with the public are at risk of being sued by customers. This is a very large and growing risk. It is a culture that has spread from the US and is quickly gaining momentum in the UK. More and more adds on television are for claims handlers and now offer people the chance to pursue claims on a no win no fee basis. It increases the risks for all businesses of being sued and taxis are among those placed at a high risk of being sued in such a manner.

It is for this purpose that taxis must have some form of public liability insurance. This is covered for all automobiles in the form of third party insurance. Third party insurance covers the cost of other people making claims against you for whatever reason. For most drivers the risk is that they will cause an accident or damage someone else’s car. The third party insurance will cover the claims made against them for injury to others and also for the damage to property.

Taxis are far more at risk of claims of this nature than are other drivers. First of all, they are on the road all day every day. Being on the road is their full time business and there are not many private drivers who will spend as much time driving as taxi drivers do. And the longer you are on the road, the higher the risk that you are going to have an accident. This is because even though taxi drivers are more experienced, spending a lot of time on the road will still increase the risk of an accident.

The other reason taxis are more at risk from third party claims is that they carry hundreds of passengers every day. Every single one of these passengers is a potential law suit waiting to happen. If anything goes wrong on the journey, even if it is not the taxi driver’s fault, the passenger may be able to sue the taxi driver. This means that taxis are constantly under a risk of third party lawsuits. And because people are becoming more and more inclined to suing, the risks are just getting higher and higher.


Legal Expenses Insurance


Legal expenses insurance is another type of insurance that taxi drivers may be interested in. If you are claimed against unreasonably, you may not want to make a claim on your car insurance every time, as your premium will go up. If you have legal expenses insurance, then you can use it to cover the costs of challenging the action without losing your no claims on your taxi insurance.


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