Which Taxi Insurance is Right for Me?

If you’ve decided to become a taxi driver in your local area and got to the point where you have been granted a 1 or 3 year Taxi Driver Licence, you will undoubtedly be keen to get started in your new profession.

The next stage is making sure that your chosen vehicle is licensed as a taxi for the road. Whilst regular vehicle insurance can be fairly straightforward, there are some key differences between regular insurance and taxi insurance that you should be aware of before purchasing a new policy.

Have a read below to find out what kind of taxi insurance is right for you. Insurance can be a minefield to navigate at times so it’s worth gathering as much information as possible before you get started.

What kind of Taxi Driver are you?

First and foremost it’s worth assessing what kind of taxi driver you would like to work as. Traditionally, there is a clear choice between two types of taxi driver: Private Hire and Public Hire. The difference might sound obvious, but it’s worth clarifying and weighing up the each of the options before you make a hard and fast decision.

Private Hire Insurance

As a private hire taxi driver you are likely to own a personal vehicle such as a saloon car and work for yourself renting a taxi meter from a reputable taxi firm. Your work will come from customers privately booking your cab, giving you a steady stream of fares and routes.

  • What can I expect if I become a Private Hire Taxi Driver?
  • Flexible hours – working for yourself means you can work whenever you like
  • Easy Access to Fares – If you are with a reputable company (such as a well known local taxi firm or a company such as Uber, Lyft or Addison Lee) you will have a steady stream of fares
  • No waiting around in taxi ranks – you only need to drive when you have a fare
  • Very competitive market – the majority of new taxi drivers are becoming private hire taxi drivers.

If you are planning to go down this route as a taxi driver, then private hire insurance is right for you.

Public Hire Insurance

The alternative to private hire is public hire. When becoming a public hire taxi driver, you will either rent your vehicle from a taxi company or buy it outright. You will then be able to pick up public fares from taxi ranks or be hailed by passing customers.

What can I expect if I become a Public Hire Taxi Driver?

  • Flexible hours – working for yourself means you can work whenever you like.
  • Easy Access to Fares – you will have the ability to be flagged down straight off the street. No pre-booking necessary.
  • Ranking up – you will also have the choice of picking passengers up from a taxi rank. These are often found at supermarkets or in busy public places.

If public hire sounds more reasonable to you, then you should be ready to look at public hire insurance.

Other Types of Taxi Insurance

Not all taxi drivers fit into the aforementioned two brackets, especially if you have a different type of vehicle such as a minibus, or if you are looking to insure a fleet of taxis.

Minibus Insurance – there are both private and public hire insurance options for a minibus (otherwise known as a Multi-Purpose Vehicle or MPV).

Taxifleet Insurance – if you have multiple vehicles you need to insure, you can save time and money by finding one policy that covers all of them

Hopefully, this has helped you understand the different types of taxi insurance and which one applies to you. If you have any further questions about taxi insurance feel free to get in touch with Patons Insurance, or fill out our new quote form today.