Where a minibus is used for a business activity, for commercial profit, or where there is any payment by passengers giving them the right to be carried this is deemed to be for ‘hire or reward’. You can also obtain minibus insurance for other uses and this is generally a lot cheaper. Eg for a large family to get around!

There are certain types of commercial businesses such as private nursing and school nurseries etc that operate a minibus as a part of their business. If the business receives payment by their clients in their care, which indirectly includes the use of the minibus, this would be classed as ‘hire and reward’. Another example of ‘hire and reward’ is where petrol money is exchanged for taking children to school or where a hotel may provide a courtesy minibus service.

‘Hire and reward’ minibus users, are required to have a Passenger Carrying Vehicle (PCV) – Category D Licence. There is more information on this subject online that can help any prospective drivers.

Hire and Reward drivers need a suitable type of minibus insurance cover so always make sure that you speak to an expert broker who can help with your policy.

One of the most important aspects of your policy when you are carrying passengers is public liability cover. With this level of protection you will be covered in the event of anyone who is in your vehicle being injured in an accident. Without this you could be faced with a potentially huge claim being made against you with no form of cover available. If this happens then this can be one of the ways in which your business may be crippled by the financial cost of having to meet any claim.

With the right policy you will also have a number of other benefits that come in extremely handy for your general day to day trading. The replacement vehicle cover is one of the most beneficial aspects as this means that if you are involved in an accident that was not your fault, you can get another licensed vehicle while yours is getting repaired. This obviously means that you do not have to be out of work while your car is in the garage getting fixed. If you have a number of different drivers who are operating the same vehicles then this is also covered with the right policy.

No matter if you are working as an upper market chauffeur for rich businessmen, or operating a limousine business ferrying party passengers, you have got to make sure that you are fully protected in the event of an accident. If you are carrying multiple passengers then you could be faced with numerous claims so the right chauffeurs insurance policy can literally save your business

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The use of unlicensed cabs can be a major problem due to them being completely uncontrolled and monitored. The driver will not have had to go through the numerous checks that are carried out meaning that anyone could be in the driving seat. This brings about a massive safety issue due to the fact that the person behind the wheel could have any kind of criminal conviction. The fact that they have not gone through the necessary licensing procedures also means that their car may not be completely roadworthy which will ultimately increase the risk of an accident occurring.

It is in the event of an accident that the problems can increase even further. If you are in a fully licensed cab as a passenger then you are fully insured for the duration of the journey. If the vehicle is involved in an accident and you suffer an injury then you can make a claim. However, if you use an unlicensed taxi and are involved in an accident then you are not insured at all for any scenario as the driver is not covered to drive for Hire and Reward. Can you really risk this?

It may seem like a good idea at the time to jump into the first cab you come across at the end of a night out but doing so means you are putting yourself into a precarious position. Not only may you be at risk from an unscrupulous driver (we’ve all heard on the news of horrible incidents) but you are also not protected by any form of taxi insurance. Getting home safely is a much better alternative to getting home that little bit quicker so you should always make sure that the cab you get into is fully licensed. Getting into a legitimate vehicle will mean that both the car and the driver have been checked and also that you will be covered for any accident.

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Think Insurance can provide you with a cheap insurance quote today, whether you are looking for a motor trade, home, taxi or commercial insurance policy, leave your details and we will contact you.

When you start driving taxis for a living then you are clearly dependent on having access to the vehicle at all times in order to get an income. Any period that you find yourself without your car will result in you not being able to go about your job – like an writer without a pen. If you have the correct policy then you coudld be issued with a replacement plated car in the event of an accident at no extra cost.

As well as the cover that you will get for the actual vehicle, you should also get a sufficient level of public liability cover. This can be even more important as it means that you are protected in the event of one of your passengers being injured whilst in your vehicle. You will find that a good insurer will be able to provide public liability cover for even the most serious of claims. Without this cover in place, you could face financial ruin if a customer ended up making a claim against you. Also, you may find that certain contracts – eg school runs or council work – may require this cover before you can work for them.

With the above in mind, when you are looking for a taxi insurance policy, it is advisable to not just look for the cheapest one on the market. Obviously price is important to us all but you also need to consider quality. You need to look a bit deeper into things to make sure that the policy you choose has got all of the things covered that may arise. Finding a company that have got a 24 hour claim line will also be a big advantage. If you are doing a nightshift and have an accident then you don’t want to wait around till morning to start your claim as this will prolong the time that you can’t operate your car for instance.

Becoming a cab driver can be a rewarding vocation but if you are thinking of entering the trade then you should make sure that you understand the benefits and pitfalls. A professional insurance intermediary can help in this regard. Failing to do your research now may leave a sour taste in your mouth so bite the bullet and do your homework!

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Think Insurance can provide you with a cheap insurance quote today, whether you are looking for a motor trade, home, taxi or commercial insurance policy, leave your details and we will contact you.

What is the difference between taxi and private policies?

A public or private hire policy allows you to transport people from one place to another for a reward or fee. Where as a private car policy does not allow you to charge people for this. If you were to have an accident while carrying passengers for reward under a private car policy then your policy could be voided and any costs could be recovered from you personally.

What is the difference between private hire and public hire?

A private hire taxi is one that must be pre-booked prior to picking anybody up. It is illegal to hail a private hire cab off the street and doing so can land the driver with large fines and may lead to them having their licence revoked.

Public hire cabs on the other hand do not need to be pre-booked and are the taxis that you can flag down. They are primarily used in city centre areas and are governed and regulated by the local councils.

What vehicles are allowed to be used?

It is ultimately the decision of your local authority to say which vehicles can be used for taxi purposes. Obviously if you have got a three door hatchback then this may cause problems for some people getting in and out. Generally though, as long as your vehicle is of suitable size and accessibility it should be fine.

Can a private no claims bonus be transferred over?

You will find that a lot of insurance providers will be able to transfer over your no claims bonus from a private policy. It is always best to check with them to find this out as you may well be able to get a reduction in your premium.

Whenever you decide on taking out a taxi insurance policy, make sure that you do your research and if you are not sure about anything then contact your broker.

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Some people may think that they can get away with having a normal, private policy when they are driving a taxi but this is not the case. If you insure your car under a normal policy and then use the vehicle as a taxi then you will invalidate the cover that you have got and will also be breaking the law. Getting caught without the correct cover can mean you lose your licence/livelihood  and in a  worst case scenario you will be heavily fined and possibly even jailed.

Not taking out full taxi cover means that any passengers you carry in the vehicle will not be insured either. This can lead to civil and/or criminal court cases where you may be found liable for any injury or material costs. You therefore are putting not only yourself at risk but also those people who are unknowingly using your illegitimate services.

If you are a taxi driver then your vehicle is your breadwinner, so it makes sense for you to make sure that you are going to be covered in the event of an accident. If you were without your vehicle for any length of time or had your licence taken off you then your source of income has gone. Taking out taxi insurance may end up costing you a little more initially but in the long run it is an additional cost that you cannot afford to ignore.

So, if you are looking to take out a hire insurance policy it’s worthwhile doing some research to make sure you get what you need. Public liability insurance, a 24hr claims service and a replacement plated vehicle are just some of the things a quality taxi policy should include. If in doubt always ask your broker.

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