Taxi Insurance Explained


If you are the owner or driver of a taxi, you will be required by law to take out insurance. The compulsory aspects of this car insurance will cover your third party liability insurance that is the same for all cars on the road, and public liability insurance that is the same for all businesses that deal with the public. The unique thing about taxi insurance is that to a very high degree, these two types of insurance will overlap. You will need both types of insurance basically for the same reasons and at the same time.


Not just car insurance


Taxi insurance does differ from ordinary car insurance in many important ways however. Insurance is all about risk, and car insurance risk calculations are extremely personal. They depend a lot on the type of vehicle being insured, the age, sex and experience of the driver, the value of the car and the previous insurance claims involved. Car insurance premiums will also depend on the use being made of the vehicle. Car insurance for a personal car, and a car used for commercial or business purposes will differ. A car being used as a taxi will be very different from a car being used purely for personal purposes and if you do have a taxi, then you must make sure that you insure it with an adequate taxi insurance policy and not simply an ordinary car insurance policy.

Taxi insurance premiums will also depend on the city in which you drive. It is a well known fact that crime rates and accident rates differ from city to city, and since taxis will conduct the vast majority of their business in a single city, they will have to state the city they are based in for most taxi insurance policies.

Another thing about taxi insurance is that your third party insurance cover will be far more extensive than for an ordinary car. All drivers require to have third party insurance. This is a requirement of law and it is illegal to drive without third party insurance. For most drivers, this insurance cover does not protect them directly, but is designed to protect all the other users of the road. If you cause an accident, or cause any damage to the property of another person, or worse, if you cause serious injury to other people, including passengers in your own car, then they will be able to sue you. These suits can often be for hundreds of thousands or even millions of pounds and the only way anyone can afford this risk of severe liability is to have insurance. Therefore, your third party insurance will step in to cover these types of claims.

When you are a taxi driver, you will have all the usual risks of third party liability that all drivers have. However, you will also have extra duties that you must perform fro your passengers and they will have even more claims against you than the average member of the public. Also, because you will be spending so much time on the road, your risk of accident will be higher. Therefore, the third party aspect of taxi insurance will be more substantive than for other forms of car insurance.


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