subject: Benefits Of Private Hire Taxi Insurance [print this page] Any taxi driver will always have the issue of insurance in his mind for the success of his business. Any good insurance policy should be able to protect the owner, driver, or the company in case of a calamity. Thus, an insurance policy should be tailor-made to suit the concerns and expectations of any potential policy seeker.
A public hire taxicab contrasts from private ones by the fact that the latter operate through prior bookings for pick-ups or deliveries. Both types of cabs may be at centralised locations or depots, but the private ones will only operate as long as they have a prior appointment with a client. In addition, private hire cabs are not permitted to advertise or offer any indication that they are up for hire. The case is different with public cabs, such as the London black cabs, also referred to as Hackney carriages that display the 'For Hire' sign on the cars. You can thus stop one whenever you need it on the spot.
Journeys or trips made by a private hire taxi have to be booked for in advance, thus as long as there are prior appointments, this type of taxi remains in operation. You cannot however, simply hail one of them at a moment's notice. Consequently, the revenue generated by the private hire taxis is slightly less than that generated by public hire taxis.
In the same breath, therefore, the insurance cover for both public and private taxicabs will also differ. Private hire taxi insurance policy is much cheaper than that of the public hire policy. Insurance companies make an effort to tailor their quotes for private hire drivers and companies in such a way that it is easily accessible and affordable. As a result, this form of policy is becoming increasingly popular for many people opting to venture into private hire taxi business.
First, the cost of acquiring such an insurance policy is cheaper and less tedious that that for public hire taxis. The start-up costs are low since the down payments are less, as do the premiums. This is so important, especially for new taxi companies who need as much profit as possible to make their new business venture viable.
Second, the frequency of payment for a private hire taxi insurance policy cover is lower than that of a public hire taxi. Public hire taxi drivers are often required to make their policy payments weekly. This is quite tedious. It is also risky because should anything go wrong, for example, a cheque bounces, or a delay in mail delivery or loss, the driver or company may end up losing the policy before the mess is promptly sorted out. However, for a private hire taxi owner or company, payment is only made once a month. This gives the owner or company ample time to plan, manage the budget, as well as deal with any urgent issues that may arise.
Ultimately, whichever private hire insurance cover you choose, it will provide protection from any form of liability that may arise due to damage or loss.
by: Tom Jones
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