Taxi fleet operators need to know every aspect of their business and ensure that everything it does complies with taxi industry regulations.
One of the biggest concerns is managing the risk of their fleet and ensuring every vehicle and driver are protected by the legal minimum taxi insurance in the event of a claim. For operators with three or more vehicles, it makes sense to consider taking out taxi fleet insurance which covers several vehicles under one policy, ensuring both the business and the drivers are properly protected.
Taxi fleet insurance policies
Taxi fleet insurance provides cover that addresses the specific risks associated with operating a fleet of taxis, offering both protection and financial security. It can provide protection against a range of risks, including accidents, passenger injuries, and damage to vehicles. Managing insurance for multiple vehicles under a single policy also helps fleet operators streamline administrative tasks, which can help them save time and money.
One of the key components when taking out fleet insurance is the fleet experience – the claims history and risk information associated with a fleet. Insurers use this data to assess the risk profile of the fleet, which helps determine premium costs.
Cover for individual vehicles builds up a No Claims Bonus (NCB) discount on insurance premiums every year a policyholder does not make a claim. But with fleet policies, each vehicle doesn’t earn its own NCB. Instead, insurers offer a fleet-wide claims experience, which considers the overall claims history of the entire fleet.
The best way operators can help keep their premiums down is by maintaining a low claims frequency. Shopping around rarely leads to a better deal because this does not enable them to build up a positive fleet experience.
Levels of cover
As with individual taxi insurance, taxi fleet insurance offers various types of coverage to protect against different risks. Third-Party Only (TPO) coverage handles damages to other vehicles, injuries to third parties, and passengers, which is the minimum legal requirement for operating a taxi.
Third-Party, Fire, and Theft (TPFT) includes third-party coverage and protection against fire and theft.
And comprehensive coverage provides protection which includes damages to vehicles in the fleet.
There are additional options that can be added to protect a taxi fleet. These include Legal Expenses Insurance which covers legal costs for non-fault claims and provides financial relief from legal disputes.
Fleet owners might also want to consider taking out Public Liability Insurance which protects them against claims from incidents not directly related to driving, such as injuries caused by driver negligence outside the vehicle.
To help keep vehicles on the road, Taxi Breakdown Cover provides specialised roadside assistance for taxis, ensuring minimal service disruption.
And to help operators minimise their costs in the event of a claim in which one of their drivers was at fault, Excess Protection Insurance allows them to reclaim excess payments, up to a specified annual limit.
Maintaining a Positive Fleet Experience
Fleet owners can benefit from working closely with insurers and brokers. While direct insurers offer policies tailored to fleet needs, taxi insurance brokers can access multiple insurers and compare rates, helping fleet owners find the best coverage at competitive prices.
They can also provide valuable insights and help fleet owners to focus on delivering safe and reliable service to their passengers.
Maintaining a positive fleet experience is essential for securing favourable insurance rates. Implementing risk-management practices involves regularly assessing and managing risks within a fleet to reduce the likelihood of accidents and claims.
Operators should encourage safe driving by providing training and incentives for drivers to maintain safe driving practices. They also need to monitor claims and work with insurers to address any issues that may impact a fleet experience can help maintain a positive reputation and lower insurance costs.
