Taxi & Taxi Fleet Insurance
Your guide to taxi and taxi fleet insurance
Essentially, a car insurance is important not just because you are meant to follow the law, but to also protect yourself from bearing the financial burden of repairs and defence suits in case of an accident. Opting to not get a car insurance is not just illegal and punishable by law in the UK, but it is also putting yourself or the driver of your car at risk.
What is a taxi fleet insurance?
Importance of taxi and taxi fleet insurance
As with any car that is admissible by law in the UK to be driven on the roads, those of a taxi fleet need to be insured too. Taxi and taxi fleet insurance can be costly due to the great amount of numbers of cars. Taxis are integral to the UK as they provide a mode of transportation to those who do not own cars. If you take a look out at the streets of any city of the UK, you will find at least a dozen scattered around in just one neighbourhood. Due to their high use, it is necessary for the cars to be insured in case an accident was to occur.
Factors to consider
The factors that you need to consider when going for a taxi and taxi fleet insurance are;
- The age of the named drivers and their relative experience
Younger drivers are charged a greater fee when it comes to car insurance. This is due to their lower experience in the field of driving. The lower the experience, the higher the probability of an accident. This is what causes insurance companies to cash more money from you, which is why you need to be strategic with your hiring.
- Type of vehicles
If your vehicles do not have the right safety measures installed in them, this automatically drives up your insurance costs. The lesser they built in safety, the higher the risk of damage to the driver, which equals to a higher premium cost.
- Level of cover you wish to obtain
Typically, there are three levels of cover; third party insurance, third party fire and theft, and comprehensive. In the UK, it is the law to get a third party insurance. This kind ensures that your insurance company will cover all the financial costs associated with repairs to the car of the other party if you were ever to get in an accident. Third party fire and theft covers compensation that your insurance company provides in case of your car getting stolen or being involved in a fire. Comprehensive insurance is the kind that covers the costs associated with damages to your own car, the other person’s car and all the legal billing, if needed.
Additional kinds of covers provided
There are two additional kinds of covers provided by insurance companies; public liability and breakdown assistance. A public liability cover is helpful in the sense that it protects you from any liability claims that are aimed to go against you. Businesses such as the taxi business are huge contenders for such claims, and this type of cover protects them from said claims. The addition of a breakdown assistance cover to your existing fleet policy can be well worth it as it can save you some bucks on your insurance.
Benefits of taxi and taxi fleet insurance
Apart from the cost saving properties of said kind of insurance, another advantage of the taxi and taxi fleet insurance is that it is extremely easy to manage. Not only does it let you be flexible with the kinds of cars you wish to insure under one policy, but it is also extremely handy as you have to manage just one policy instead of juggling with many.
Lowering your taxi and taxi fleet insurance costs
There is a number of safe and legal ways that you could use to further lower the costs related to taxi and taxi fleet insurance. They are as follows;
- Hire experienced drivers
As mentioned above, this is a major determinant in how much your insurance will cost. The more experienced your driver is, the lower the cost is.
- Pay a higher voluntary excess
Excess is the amount of contribution you make towards any costs associated with repairs of your cars. The higher the voluntary excess is, the lower your premium is. However, be sure to not go overboard with it.
- Hiring those that have taken a Pass Plus course
If your drivers have taken and passed the Pass Plus course, then you will have a lower premium. This is because this course is designed such so as to help the driver gain more experience on the roads.
- Parking your taxi fleet in a garage
If your taxi fleet is parked in a locked up garage, then the chances of your cars getting stolen is low. The lower the chance of theft, the lower your insurance premium.