The least expensive insurance is Third Party Only. This low cost taxi insurance provides the most basic level of cover and is the minimum legal level allowed to drive a vehicle on roads and public highways in the United Kingdom.
This cheap taxi insurance should be given careful consideration as it will only provide cover for persons and other vehicles damaged in an accident caused by you. It will not provide cover for your taxi or repairs to your taxi.
If you are hoping to be granted a local authority contract this level of cover will be insufficient. Additional Public Liability cover will also need to be included.
For those who do not have or do not wish to have local authority contracts it may still be wise to insure for Public Liability. This will provide cover should one or more of your customers be injured while in your vehicle and seek to make a claim against you.
If you have an old taxi with a low replacement value then taking a Third Party Only taxi insurance may be an option you may wish to consider. Particularly if you operate in what is considered to be a low risk area by the insurance companies.
Should you be involved in an accident caused by another vehicle you will be able to make a claim for any personal injury or damage to your vehicle against their insurance, providing of course that they have insurance! There are estimated to be over two million uninsured drivers on UK roads.
Although new and existing measures are being used and introduced by the police and government to reduce this number it is of little consolation if you are involved in an accident with an uninsured driver.
Insurance companies use post codes to determine which areas of the country are low, medium or high risk areas. Low risk areas are generally rural areas, medium risk area small towns and some suburbs, while the inner cities are considered to be the highest risk. Speak with different insurance companies to find out what their high risk postcodes are.
Taxis operating in medium and high risk areas should give consideration to having a Third Party Fire and Theft taxi insurance policy. This provides the same cover as a Third Party with the added benefit of also being covered should your vehicle be stolen or damaged by fire.
The age and value of your taxi may help you decide which type of taxi insurance to opt for. It may be a better option for older vehicles, with a value less than the cost of annual Comprehensive insurance, to be covered by a Third Party policy. This will be considerably cheaper as you will be covered for costs caused by you to other vehicles only.
The cost of any repair damage to your vehicle will not be covered if you caused the accident, neither will you receive any money if your vehicle is a 'write off'. The other parties insurance will pay for repairs if the damage was caused by their insured driver.
Author Resource:-
Staveley Head are a leading UK insurance broker for taxi insurance
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