Taxi Insurance - A Brief Overview What is taxi insurance?

Taxi insurance is a safety cover for taxis. The frequency of road accidents has risen like never before. In such a dangerous scenario, cab drivers and the cab are both at high risk since all their working time is spent traversing the high traffic ridden roads. In case of accidents, taxi insurance provides different kinds of covers like road damage, car damage, third party damage, passenger injury cover and legal cover. Taxi owners can choose covers that they feel they are most likely to use. Taxi insurance is a safety net for taxis and their drivers.

What is the necessity of auto insurance?

The answer to this question is the same as for the question regarding necessity of insurance for a private car. In case of taxis, the risk is more pronounced because taxis are more exposed to the risk of accident and damage on the road. Further, passengers cannot be held responsible to pay for damage if they are in the taxi when the accident occurs. The entire monetary burden falls on the shoulders of the taxi owner. Taxi insurance provides cover in times of accidents. It provides monetary relief to taxi owners by covering for various damages. Lawsuits cause major expenditure if the other party involved in the accident files it against the cab company. Since lawsuits take time and money, having an insurance to fall back on can be a huge respite in scorching situations. Taxis Buckingham

What are the types of taxi insurance?

Auto insurance is of two types - private hire insurance and public hire insurance. Private hire services are services where the taxi transports passengers only if they have booked beforehand. Public hire services are the services where the taxi may be booked in either advance or hailed off on the road. Insurance is provided for both these kinds of taxis services. In general, private taxi hire insurance is cheaper than public hire insurance. The insurance policy has to be chosen keeping in mind the kind of services that the taxi company mostly provides.

Insurance for the whole taxi fleet

Many taxi companies have more than one vehicle. In order to save costs, insurance can be taken for the whole taxi fleet instead of a single insurance for each taxi. However, insurance companies have limits while giving fleet insurance like the minimum number of cars. Although the monthly premium for fleet insurance is more than that for a single taxi, it is less than the sum of all the insurance policies of individual taxis put together. Therefore, they turn out to be more cost-effective.