If your taxi business has a fleet consisting of three or more vehicles, it may be eligible for taxi fleet insurance policies.
It is a legal requirement for any vehicle on the road to have vehicle insurance. If you employ anyone other than yourself in your company, you are also required to carry employers liability insurance. However, there are several other areas of cover that many taxi businesses want to have.
There are two other major factors affecting the cost of your insurance. First is the type of taxi company you are; private hire or public hire.
Private hire taxi companies only take pre-booked passengers, while public hire companies may take passengers off the street without prior booking.
The other important factor is whether you want limited or unlimited mileage insurance. Limited mileage insurance is invalidated if your vehicles exceed the mileage cap, so it can be restrictive for some companies. However, unlimited mileage insurances costs more. The reason for this is simple – the more distance travelled, the greater the potential risk of accident.
Assuming the same trips are taken at the same fares, a lower insurance premium makes for a greater profit margin. However, cutting your premiums by cutting your cover is a risk, and it’s one you should bear in mind when comparing taxi fleet policies.
Using a comparison form like the one above will provide you with a selection of quotes appropriate for businesses like yours. Depending on the vehicles in your fleet and the cover you want, which of the options is best for you may vary, Take the time to review your options and make sure the one you choose is one you’re happy with. If you do need to make a claim, nothing feels more frustrating than realising that you chose a policy that didn’t cover you against this claim.