5 things taxi insurance will do for you
In the UK, taxi insurance is compulsory for taxi and private hire vehicles. You can’t operate the two with the standard car insurance policy, as it is among the key requirements you need to fulfil when applying for a licence. A big mistake that many car owners make when applying for insurance is getting any cover just to fulfil the requirement. This should not be the key motivation when applying for coverage. The coverage is essential for the wellbeing of your drivers and the passengers. Therefore, you shouldn’t get a cover for the sake of passing an evaluation. You should take the time to understand the benefits it carries for your company, drivers and passengers, and get the right cover from the right source. Taxi insurance can cover the following:
Vehicle Repair After Accidents
When you keep your cars in a good condition and hire competent drivers, road accidents are reduced. However, there are accident causes that will be beyond you and your drivers’ control. A good example is bad weather and irresponsible drivers on the road. Having taxi insurance will give you peace of mind knowing that in case of an accident, repairs to your vehicle will be covered. You won’t have to pay for repairs out of your pocket. Also, you won’t have to quit business when you don’t have money to repair your vehicle. The insurance can also cover damage to third party vehicles.
Personal Injuries and Damage
Taxi insurance can also cover personal injuries. When your taxi is involved in an accident and your passenger is injured, he or she will file a case against you for compensation. You will have to cover the passenger’s medical expenses and other losses that come about as a result of the accident. A good example is lost wages. Such cases can cost your company thousands of pounds. In addition to personal injuries, taxi insurance can also cover property damage in the event of an accident.
Business interruption Coverage
Business interruption coverage means that the insurance company will pay you in the event that you are unable to operate your taxis and earn some income. This can be very helpful especially in cases where you are relying on your taxi business as the sole source of income. You won’t have to worry about paying your bills before you get back to business.
Fire and Theft
In addition to accidents, insurance can cover your taxi for damage caused by fire and weather conditions. It can also be useful when your vehicle is stolen. According to Statista, the police recorded that the number of cases for unauthorised taking of motor vehicles and thefts in England and Wales in the year 2017/2018 amounted to more than one hundred thousand. Some of the cars that are stolen are never recovered. Also, in the event of a fire, a vehicle can be burnt beyond repair. Such incidents are unpredictable and thus you should guard yourself from the unexpected by taking out a good cover. With such coverage, you will be able to get back on your feet after theft or damage without making another huge investment.
Employee Injuries
Taxi insurance coverage can extend to employee injuries for big taxi companies with a number of employees. This makes it easy to compensate the employees who get hurt while on the job. Your insurer will pay for their medical expenses and other costs.
With so much at risk if you don’t take the right policy, it is wise to take your time when picking taxi insurance. There is a huge misconception that good covers cost a lot of money. This is not the case. If you do your research well, it is possible to find cheap taxi insurance that covers all your needs. The linked Quotezone.co.uk article highlights some of the key factors that can be helpful in finding cheap insurance. Quotezone.co.uk is a price comparison platform for a number of financial service products including car insurance.
When choosing a cover for your taxis, consider the following:
- Know the risks involved: Start by evaluating the risks involved in taxi businesses. Some risks like accidents are general to all business owners, but other risks such as bad weather and theft tend to be higher in some areas than others. Knowing the risks will help in determining the coverage needs including the extras you need to add to your policy.
- Compare offers: Don’t settle for the first offer you get. Rather, make use of comparison platforms to compare coverage and costs.
- Read the policy document thoroughly: Each insurer will have some exclusions in the policy. Exclusions show the circumstances where the insurer will not cover you. You should also read the document to ensure everything you are paying for is written down.
- Check the insurer’s reputation: Don’t buy taxi insurance from a company before checking their reputation. Check reviews and ratings to see how well they deal with claims.
Don’t run the risk of operating without the correct insurance. Search online for a quote and make sure you are covered for all eventualities.