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TAXI INSURANCE: The difference between car insurance and taxi insurance uncovered

There are a number of differences between Car Insurance and Taxi Insurance. With the help of Swinton Insurance, we explore the contrasts below.

What does Taxi Insurance cover that Car Insurance doesn’t?

Put simply, if you work as a taxi driver, a regular Car Insurance policy will not adequately protect you, your vehicle, and your passengers. If you use your car for hire, you must have a suitable Taxi Insurance policy in place.

To drive a car on UK roads, the minimum cover you must have is third party, which protects against damage or injury caused to other vehicles, people or property. The next level of cover available, third party, fire and theft, will also protect your vehicle against any damage caused by fire and theft. Comprehensive cover, the highest level, will also protect against damage to you or your vehicle, even in an accident that’s deemed to be your fault.

While the same three levels of cover are available for Taxi Insurance, it differs to regular Car Insurance in that it protects you against the specific risks you face, due to the following:

  • The higher number of miles you’re driving

  • Your regular contact with the public and your accountability for them

  • Having to drive in stressful situations and heavy traffic

  • Having to drive during unsociable hours.

Depending on the type of licence you hold and vehicle you drive, you’ll either need Public Hire Taxi Insurance or Private Hire Taxi Insurance.

What’s the difference between Public Hire Taxi Insurance and Private Hire Taxi Insurance?

The main difference between Public Hire Taxi Insurance and Private Hire Taxi Insurance is that public hire taxis don’t need to be booked in advance and are licensed to pick up passengers on the street, however private hire taxis must be pre- booked, and can’t be hailed by passengers on the street.

Generally speaking, public hire taxis can be a bit more expensive to insure than private hire taxis, as the vehicles are often newer.

Why does Taxi Insurance cost more than Car Insurance?

Taxi Insurance tends to cost more than Car Insurance because of the statistically higher risk of having an accident, due to the fact that taxi drivers cover more miles than most motorists. Along with driving more miles, taxi drivers are also likely to have larger vehicles that sit within a higher insurance group.

  • Taxi drivers complete more miles than the average motorist

  • Taxi drivers often drive under demanding conditions, e.g. in built-up areas

  • To increase the number of passengers they’re able to carry, taxi drivers often have larger vehicles, which are more expensive to insure

  • Taxi drivers run the risk of personal injury claims being made against them by their passengers.

Can you drive a taxi with Business Insurance?

As a taxi driver, you’ll need to have a Taxi Insurance policy in order to use your vehicle to carry passengers for reward. If you have specific requirements, for example your taxi business owns a number of vehicles, Taxi Fleet Insurance is available.

There are also specific policies for taxi drivers with vehicles with over eight seats, and those who work as chauffeurs.

Do taxi drivers need Public Liability Insurance?

Public Liability Insurance, or Taxi Liability Insurance, protects you and your business against any claims of injury or damage to property by someone in your care. Having this cover can prove invaluable, when you consider the risks you’re exposed to as a taxi driver.

Having Taxi Liability Insurance will cover you for whenever passengers are in your care – bear in mind that injury or property damage could occur when a passenger is entering, inside of, or leaving your vehicle.

Taxi Liability Insurance can also be extended to include your taxi premises, if required.

Can a taxi driver drive my car on my insurance?

For a taxi driver to be able to drive someone else’s private car in a regular capacity, i.e. not for hire and reward, they would also need to hold a regular Car Insurance policy that includes ‘driving other cars’.


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