subject: Is Cheaper Private Hire Taxi Insurance Better? [print this page] Often, when people are searching for the right cover, they mistakenly believe that the less expensive it is the better. This is because people are generally searching for the lowest rates and forget about why those rates are so low in the first place.
Usually, when you find very cheap policies, there are huge gaps in cover, which can really place you in a financial bind if something goes wrong.
When searching for the right private hire taxi insurance, you should remember some things. First of all, you are on the road much more than just about any other type of driver, which means that the potential for accidents, damage and breakdowns are much more likely. You should be thinking about the level of cover that you get for the cost and not simply the cheapest rates out there.
If you ever have to file a claim and you have slimmed down insurance, then the amount it will cost to get you back on the road will have to come out of your own money and this can be devastating to a business. Often, while the cheaper cover seemed a good idea to enable cost savings, it usually ends up being much more in the long run, since the money has to come from you alone.
Companies that offer cheap private hire taxi insurance often leave off things like windscreen replacement, breakdown recovery and cost associated with breaking down and lots of other important things. In addition, when obtaining cheap cover, the compulsory excess is usually extremely high. This means that by getting lower premiums, if a claim has to be filed, the excess would be so much that you might not could come up with it. If you were unlucky enough to have to file more than one claim, it could put you out of business.
It is understandable to want to save as much money as possible. Taxi drivers aren't rich and every penny counts. However, when you think about how much your cheaper insurance is not covering, then getting one that costs more but offers greater cover makes tons of sense.
One way to cut the costs of cover is to pay for the whole year at one time. Although not everyone can afford this, it is a great way to avoid the monthly interest on your premiums.
Although private hire taxi insurance costs more than just about any other form of cover, it is imperative to seek out a policy that covers more than a simple basic policy can. This can end up savings you more later on, especially if you ever have to file a claim. While the less expensive cover looks good now, it won't when you are shelling out all your hard earned money to have repairs made that your cheap insurance didn't cover. It is better to pay a little more and get a good deal, then go with a policy that is cheap but leaves you exposed.
by: Tom Jones
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