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reason why it can sometimes be difficult to find good
taxi insurance in the UK is because taxi drivers often
approach the traditional car and motor insurance providers
thinking that their needs will be met by these companies.
But the reality is that regular insurance providers
are not set up to properly handle the unique insurance
needs of a taxi driver, and they are not aware of how
the taxi business is run. If you make a living as a
taxi driver it is crucial that you purchase an insurance
policy from a specialist that has experience in the
business.
For instance, it is important that
your insurer understand some of the details of the
cab business. They must know that the rules and regulations
overseeing taxis vary throughout the country, and
that there are two main types of taxis: public hire
and private hire.
So what's the difference between
the two? Essentially, a public hire cab is the kind
you can gesture to in the street and get an unscheduled
ride from. Most people are familiar with the "Black
Cab" that can be found in London, and in many
main towns and cities across the country as well.
These taxis are licensed by the local authority and
the drivers' records are known.
A private hire cab is pre-booked
ahead of time for an individual who knows that they
will be requiring a taxi at a specific point in time.
Private hire cabs are treated almost the same way
as public hire cabs, except for the fact that they
are not always licensed. This is why insurance policies
for private hire are often more costly than those
awarded to public hire taxis.
Taxis must give an indication to
insurance companies of the amount of drivers they
expect to employ over a given amount of time, as this
will determine some of the insurance fees. A higher
amount of drivers might drive up the cost by a marginal
amount. For example, you might have one driver who
works in a rural area, or you might employ several
drivers who work over a period of 24 hours in high-trafficked
areas. The latter situation would drive insurance
rates up, as there is a higher possibility of accidents
and more maintenance required.
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