In the United Kingdom, it is mandatory under the law to hold a minimum level of insurance for your vehicle, if you want to use it on a public highway. Moreover, if you plan on carrying passengers in your vehicle with reward, you will need a license from your local vehicle authority. This type of license is called a Chauffeur Insurance.
The major difference between a private hire driver and a chauffeur is that, despite the fact that in both cases your journeys need to be pre-booked, private hire taxis can collect cash whereas chauffeurs cannot. As a chauffeur, all your appointments will be pre-paid. The individual rules and requirements by the authorities will differ according to the area in question. Finding the right chauffeur insurance is an essential prerequisite to ensuring the smooth running of your business.
The insurance policy should be comprehensive enough to cover all possible risks you may encounter as part of your everyday business activity. There are a number of chauffeur insurance policies offered by a range of insurance companies. Your needs depend on the kind of car hire you have on offer. Your chauffeur insurance deal should cover quotes for public liability insurance, insurance in the event of breakdowns or any other kind of damage, and even the option of replacing your vehicle in case the damage is irreparable.
If you more than one chauffeur driven vehicles, you may be able to secure a low cost deal with an insurance company. You have more chances of being given lower premiums if you are purchasing insurance for a number of vehicles from a single insurance company. In the UK and elsewhere, most chauffeur driven vehicles are expensive relative to the traditional taxis. This means that the repairs and maintenance costs are also higher, meaning that you will have to pay a higher insurance price for a chauffeur driven vehicle than a normal taxi. Paying the price is worth it, because at least you will be covered for any damage to your vehicle. Most importantly, you do not want to be caught evading the law.