Private hire taxi insurance is required under the United Kingdom law. A private hire taxi is one that is available for public use round the clock. These are the taxis that function with on-call customers, where you can call them and ask to collect or drop you from or at a particular destination respectively.
Under the law, insurance is mandatory for all vehicles that use the public highway. Private hire taxi insurance is usually more expensive, but the cost can be minimized in a number of ways. For instance, if you have a clean driver’s license, you can be offered lower premiums by insurance companies. Moreover, if you have no claims against you, it could help you secure you an even better deal. Experienced drivers and those over the age of twenty five are given even more preferential terms. Firms that wish to hire drivers must ensure that the vehicle has private hire taxi insurance. The different types of insurance policies available are comprehensive, third party fire and theft, and third party only. You must have one of these policies under your belt to able to drive your vehicle legally on the UK streets.
The laws pertaining to private hire taxi insurance in the UK are very strict and failure to abide by them may lead to severe repercussions. It is much less costly to purchase taxi insurance for your vehicle than be caught driving around in an uninsured vehicle. It is also essential for the safety of the passengers travelling in your vehicle if you have it insured. In case of an accident, all the damage to your insured vehicle will be paid for. Moreover, there will be no chance of the passengers filing a law suit against you. There have been incidences where firms have gone bankrupt due to not having prior insurance.
Insurance for private taxis can be paid at a monthly rate and hence is more practical for taxi drivers. You can reduce the cost by purchasing the insurance online through various websites or through an insurance broker if you wish to avoid all the hassle.