subject: What Is Public Hire Taxi Insurance? [print this page] When it comes to insuring a taxi service, providers will often divide them into two different types, private hire and public hire. A private hire taxi service is one that has its vehicles booked prior to use and can also be known as a private car service.
However, operators of a public hire taxi service can be cars, hackney carriages or black cabs that can either receive passengers at designated taxi stand areas or can be flagged down by potential customers on the street without ever having to have any prior arrangement made for an appointment for pickup.
Either service must have as a legal requirement a minimum amount of taxi insurance cover that is fully comprehensive in order to protect the driver, the passengers, the vehicle, the general public as well as the owner of the service. Drivers of public hire taxicabs must always show proof to any relevant local authority that the cover exists while they are engaged in working whether at a stand or driving up and down the streets seeking customers.
The primary goal for insurance covering a public hire taxi service is to negate any personal liability in the event that an accident or damage happens As such these types of vehicles must have an adequate amount of insurance in place, so that the owner and the driver will not be personally liable for any costs that occur. Most owners of a public hire taxi service also add an adequate amount of liability insurance to offset any claims in case a passenger gets injured, requiring either legal or medical expenses that you do not want to pay for out of your pocket.
However there are a couple of factors that you must consider before you obtain public hire taxi insurance. You should always examine to see if the company that you're going to do business with has adequate experience providing insurance services to taxicab businesses. You also want to make sure that you can thoroughly examine all your different cover options as well as the prices associated with obtaining these options.
When dealing with insurance providers that have a long-standing reputation providing service to the taxi industry, newcomers to owning such a business can benefit from the advice presented by companies specialising in this type of service. After all, you need to make sure you meet the legal minimum requirements, but you also may want to heed the advice obtaining adequate cover as well.
Any reputable and helpful agent will present you a list of extras including breakdown assistance, car replacement cover and loss of income protection. Although these particular extras will add to the premium you pay, you will be prepared for any eventuality and will be back in business as quickly as is humanly possible if you include these in your cover.
This is an important aspect particularly when you're self-employed and have a non-used vehicle sitting in the shop for repairs or broken down on the side of the road. You are quickly losing a lot of revenue. Extended periods of non-use may present a financial loss from which there is no return, unless of course, you are wise enough to take out the proper cover to meet this particular situation.
by: Tom Jones
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