It’s official – we’re out of recession and definitely into a growth period. The economy’s on the up and people are out and about more, which means an increase in the amount of trade for taxi drivers.
But the headlines don’t tell the whole story, and there’s still a great deal of personal hardship out there, especially among hardworking taxi drivers. Insurance costs, running costs, and fierce competition from ‘out of town’ drivers has left many drivers struggling to make ends meet. So how can you keep on the road and earning a decent living, if you have to constantly worry about how much your career choice is costing you?
Picking the right taxi insurance
The type of taxi insurance you pick will depend on the type of cab you drive. If you operate as a public licensed cab (a Hackney or Black Cab that can be hailed by a pedestrian from the side of the road and isn’t pre-booked) then you will need public hire insurance. If you are operating a Black Cab then you can also get specialist black cab insurance that is specifically designed to cover Hackney carriages.
However, if your customers have to ring up to book you rather than hailing you or flagging you down in the street, then you will need private hire insurance. It is important to ensure that you pick the right type of insurance, as it can have a direct effect on your ability to work.
What does your local council require?
It’s also very important to ensure that your taxi insurance meets the approval of your local licensing committee and that you fulfil all the criteria laid down by the local council. You may find that they insist that all licensed taxi drivers (both public and private hire) have a package of insurance cover that includes:
- The relevant type of taxi insurance
- Public Liability cover of at least £5million
- Personal Liability cover
- Operators running a fleet of taxis will also need Employer’s Liability insurance, even if drivers are sub-contracted or part-time.
While the personal liability is often optional, it is usually the case that the issuing of a taxi or Hackney Carriage licence will depend on the driver having full Public Liability cover. If you work for a company then don’t naturally assume that their PLI will cover you as well – double check with your local council’s licensing committee as to whether they expect individual drivers to have their own PLI as well.
What optional extras should you consider?
We started this blog by acknowledging that times are still tough for taxi drivers, so clearly it’s important to keep your expenditure down as much as possible. But short-term savings could result in long-term financial problems, so sometimes it can be wiser to spend a little more to give yourself total peace of mind. So optional extras as part of your taxi insurance cover are worth those extra couple of pounds a month in premium charges, especially if it saves you hundreds or even thousands of pounds later on.
Take, for example, replacement vehicle cover. Your vehicle is quite literally your livelihood, so having it off the road for even a day can have an immediate impact on your net income. By including replacement vehicle cover as part of your taxi insurance package, you can ensure that even if your own vehicle is damaged or off the road, you can carry on working and earning a living.
It’s also wise to include legal expense cover (which will cost very little on a monthly premium). If you’re unsure as to what extras are right for you, talk to a professional broker that specialises in taxi insurance cover.