What you need to know about Taxi Fleet Insurance

Whether you simply operate your own taxi, or you have a business running a fleet of taxis, you need to make sure you get the right taxi fleet insurance for your needs. When you are carrying passengers for hire or reward then you are legally required to have taxi insurance and if you are operating a business with a number of vehicles for hire or reward then it will be beneficial to take out taxi fleet insurance.

What is taxi fleet insurance?

Fleet Insurance in general covers two or more vehicles under one policy to save time and money. You can insure a mix of vehicle types under a mix of different policies. This is no different for taxi fleet insurance, where you can insure a multitude of saloons, estates, or minibuses, etc.

Policies can also include any driver for flexibility of usage as well as a combination of ‘third party’, ‘third party fire and theft’ and ‘comprehensive’, which may be suitable if you have a variety of vehicles at different ages and levels of condition.  

Mixes of taxi fleet insurance vehicles

Many taxi firms manage a fleet of saloon or estate vehicles with diesel engines for durability and fuel cost purposes. However, those looking to take full advantage of demand will employ a mixed fleet comprising of MPV’s for shorter trips to carry 6 passengers or minibuses for larger parties and longer trips.

Taxi fleet insurance policies will include a mix of such vehicles, however if you look to include some prestige vehicles on your policy, you may be better off using chauffeur insurance policies for these so as not to push up the overall fleet cost.

Do I need public hire or private hire?

It will be important to distinguish the correct type of taxi fleet insurance required, which could include minicab insurance, black cab insurance, private hire insurance and public hire insurance. There will be differences between each option and the type of cover that is required for your business.

A private hire taxi is one that is pre-booked in advance and public hire taxis are those that can be hailed in the street or from a taxi rank.

As a private hire business your vehicles will also need to be licenced by the appropriate taxi licence authority in your area. You can do this by finding your local council webpage and searching for licence information.

Elements of taxi fleet insurance

In order to find the level of cover that you need it is preferable to approach a specialist insurance broker working in taxi insurance who will understand and be able to advise on the requirements and elements you will need to consider for the taxi industry. A specialist insurance broker will know the features that you will need for your cover and also have access to the best deals on the market.

Passenger insurance

All taxi insurance policies will have passenger insurance included as a requirement, however, you need to be aware of the level and extent to which you and your fleet are protected on your policy. The passenger insurance element covers any damage made to your vehicle by passengers as well as claims that a passenger may make against you.

Each taxi fleet insurance policy will offer different levels of cover to this extent and it will be important to understand what you are and are not covered for and the additional costs for full cover.

Public liability cover

Public liability cover is not always legal requirement for taxi fleet insurance and is therefore not always part of your insurance policy. However, public liability protects your livelihood against third party claims, including injury to passengers or road users in an accident. Some licencing authorities do insist on having public liability cover, so it is important to know what is expected from your local council.

Number of passengers

Depending on the size of your vehicle there will be limits to the number of passengers you are legally allowed to carry. Your taxi fleet insurance policy should cover you to the maximum limits for each of your vehicles to ensure that you are always covered to your maximum capacity.

Diver’s age

As with any car insurance policy the cost of the cover depends on the age of the driver. Many insurance firms are only willing to insure taxi drivers over the age of 25 due to the increased risk of this industry. However, Bluedrop offer a true ‘any driver’ policy.

Length of insurance term

A standard taxi fleet insurance policy will cover you for 12 months, however, if money is tight or you are new to the business and unsure how things are going to pan out you can always investigate shorter terms which can be increased at a later date. It is important to be sure in this instance that the policy still covers you for all of your business needs.

What am I not covered for?

This will depend on the type of insurance you have chosen. Third party insurances will not cover any damage to your own vehicle or property, and comprehensive insurances will usually have an excess that you will need to pay.

There will be restrictions on the usage of your vehicle and even on an ‘any driver’ policy your spouse or family member will not be insured unless they hold a valid taxi driver licence.