subject: The Pros And Cons Of Private Hire Taxi Insurance [print this page] You might be thinking about starting up a cab company and there is nothing wrong with that. Cities need taxis, especially considering that in some cities it is nearly impossible for one to drive a personal vehicle on the streets and for this reason most people look for cab companies. You can be their relief from walking, taking the bus, or attempting to drive a car through the masses of people. It might seem like a huge undertaking and it is, but it can also be incredibly profitable if done properly!
There are a few pros and cons to creating a private hire taxi service and we will go over those now so that you will know precisely what you are getting yourself into:
Pros:
Perhaps the largest advantage to a private hire taxi service is the condition of your vehicles. You will obviously have a limited clientele and as a result your vehicles may very well be kept spotless. This simple fact may actually bring you additional customers and generally make you feel better about your company.
You can charge your clientele less than your public hire competition because your insurance rates will be lower. You may also be popular among some of the more high class individuals in town as there are many who do not want to jump in the yellow taxis they see on the street.
When people say they are going to 'call a cab', they are more than likely going to call the first cab company they see. If that happens to be you, then you will have a new client.
Cons:
When you are dealing with private hire taxi insurance you may not be able to choose where your taxis will park. The insurance company will dictate specific locations so that you do not become a liability of any type while you are under their cover. This is a reasonable precaution, though it does tend to limit your operations somewhat.
Because you will not be able to choose your locations, you might experience a lack of business though this is where good advertising will come in handy. If you are able to promote your company properly, customers will seek you out instead of the other way around.
You will have to make regular reports to the insurance company and they may even check to see where your cabs have gone.
As you can see, there are plenty of reasons to obtain private hire taxi insurance and while there are some reasons to steer clear of it, you will have to remember that it is much cheaper than other types of insurance. That being said, you will sometimes have to accept a few limitations if you are to move forward in the world of business. Your ultimate goal may be to become a public hire company, but private hire taxi insurance is a necessary step in between if you are to become the lucrative company you have always dreamed of being.
by: Neil Anderson
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