The popularity of the taxi business has been growing consistently over the years. More and more people have ventured into the sector, and this has increased the riskiness of industry. As a result, local governments have come up with a list of essential documents which every taxi service providers must have as they operate. Other than the legal driving license, the law requires all private and public taxi drivers to have a taxi insurance coverage
By definition, taxi insurance is an exclusive coverage which offers financial protection against the risks which a regular taxi driver faces. The taxi insurance is similar to the general vehicles cover, although, it tends to be costlier than the general car policy. Here are other essential things that you should know about the taxi insurance cover.
Here are the requirements of the general application, although they might differ slightly from one location to the other.
- You should be a full-time taxi driver
- You should have a valid driving license.
- You should meet the minimum age requirements- usually 21 years
- Your taxi vehicles should be in an excellent position
- You should not have any criminal record
Types of taxi insurance
There are many types of taxi insurance, but they all fall into three broad categories:
- Comprehensive level- the comprehensive taxi insurance covers all accidental dangers and losses that yoyo might cause to a third party. The insurance provides timely compensation to personal injuries, loss of property or any damages that you cause to your clients or other third parties.
- Third-party, theft and fire- as the name implies, this Taxi Insurance coverage protects your vehicle and your property against any accidental occurrence of theft or fire. In addition to that, it provides a hedge against the risks caused by other drivers, or other third parties.
- Third-party- this is the more specific, and the most basic private hire taxi cover. It only caters for loses which you or your clients incur in the event of an accident.
Choosing the best taxi insurance cover
Here are crucial things that you should keep in mind as you select the best taxi insurance for your taxi.
- Understand the type of taxi your hire
There are two main types of taxis; the private taxi hire and the public taxi hire. If you pick clients to form any corner of the streets, public hire taxi insurance would be the best for you. Conversely, a private hire taxi would be best if you carry the booked clients only.
- Consider the premiums
Do not go for an insurance cover that you will struggle to pay. The ideal cover should fit well in your budget.
Understand the available taxi insurance covers within your location, and then apply for the most applicable for your cab. Compare different insurance firms too for the best rates.