August 14, 2018

Differences Between Private & Public taxi Insurance

For taxi service businesses, ensuring that you have adequate cover for your fleet is one of the most important things to consider. Insurance one of the largest expenditures that taxi owners face, but the expense is there to ensure that you are not left out of pocket when accidents happen, and you are faced with damaged property or legal claims even if the accident is not your fault. Risks are always present, especially since taxis are usually on the road for long amounts of time each day, and this added to the commercial factor of picking up members of the public equates to high risk.
There are two major versions of taxi insurance; private hire insurance and public hire insurance. What are the differences between these two forms of insurance?

Private hire insurance

Also known as mini cab insurance, this insurance applies for taxis that only pick up and transport pre-booked customers, and are unable to pick up members of the public from off of the street. There is less risk present with private hire because the customer has rang from an identified location and the destination is known before hand, and this makes private hire insurance cheaper.

public hire insurance

Public hire taxis are allowed to pick up non-booked customers from the street as well as taking on booked customers, and they are also able to use private company taxi ranks for larger taxi fleets. Picking up non-identified customers involves a higher risk, especially when considering that many passengers are intoxicated after evenings out, and this makes public hire insurance more expensive. Specifically, the risks involved with public hire include non-payment and assault. Prices are similar between company public hire and independent black cab hire.
Both types of insurance will cover a similar group of risk factors relating to public liability, which protects you from legal claims through fault or no-fault where there is loss or injury caused.

Policy payment is highly flexible, and ranges from 3 monthly payments to yearly payments, and if you are willing to pay for a longer time range, then your insurance deposit will be cheaper.

Drivers and owners can get public hire insurance at taxiprotection

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