Private hire taxi insurance

A private hire vehicle (PHV) is a privately owned vehicle that can be hired from time to time especially during special events such as school dances, weddings, honeymoon and many other. However they can also be hired for day to day travel needs. They are different from regular cabs in that they cannot be flagged down on the streets by clients nor can they brand themselves as regular taxis. Most cases, they are operated through a corporation that uses tracking devices and wireless communication to keep in touch with the drivers. At other times, individuals may decide to hire out their vehicles when they are not in use. But why do they need private hire taxi insurance?

Extra information about private hire taxi insurance


Operating areas

These vehicles can operate in any area in the United Kingdom. In most cases, the driver goes into areas where there are high number of people such as urban centres and densely populated residential areas. In other times, it is to places of interest such as the parks and other attraction centres. This, coupled with the fact that some drivers usually work longer hours at times may make the cars prone to accidents. Therefore the need for insurance services for the vehicle, the driver, the passengers and other third parties.


Hospital bills and compensation

In the case of accidents, you may be expected to cater for the medical bills of the victims, whether they were passengers or pedestrians. This amount may range from a few hundreds to thousands depending on the extent of injuries and the hospital. Insurance can reduce this burden by compensating some of the money used in bills. If the injuries affect the ability of the victim to engage in income generating activities, you may be required to compensate them an amount equivalent to what they would earn had they not been injured.


Damage to property

An accident may cause damage to other people's property and sometimes government property. In the case of private property, you are required to compensate the owners is the property has to be written off or cater for the repair work. These costs can be covered by certain types of insurance and therefore it is essential to get prerequisite insurance.


Extent of insurance

First of all, it is mandatory for all private hire vehicles to have sufficient insurance. Before you can be licensed as a PHV, you must provide proof that you have already taken out sufficient insurance. PHVs have a higher risk compared to other privately used vehicles. This makes the insurance a little bit more expensive than that of privately used cars.


Determinants of private hire taxi insurance premiums

The amount of money paid in premiums will depend on a number of factors. First, the number of cars and drivers in question. In the case of a single driver and car a simple named driver insurance policy may be sufficient but in case you have a fleet of cars and many drivers, an all driver insurance policy is advisable. The history of the drivers involved also matters. People who drive with care attract lower premiums since they pose a lower risk of accidents. The area of operation also plays a role. There are areas that are considered more risk and therefore attract more premiums compared to other regions.