Private Hire Insurance
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Private hire insurance, abbreviated to PHV cover, is a speciality type of cover required if you're ferrying passengers in return for a reward. This hire for reward taxi service is not for operators of the black cabs or others that can be called over from the curb, but for operators that have pre-booked clients or part of a shuttle service where clients can call for their services online or over the phone.
The panel of taxi insurance providers offer private hire drivers in all the UK authorities with a large demand for Manchester private hire insurance followed by Liverpool taxi insurance amongst many other UK cities and towns.
What is Private Hire Insurance?
Private hire insurance is an insurance cover for drivers that provide a chauffeur style service for the public on a prebooked basis. This is in contrast to a taxi can be hailed, but with private hire it must be booked. Subtle, but it is the difference that distinguishes private hire from taxi driver insurance. A good example of private hire service is Uber.
Private hire insurance is also referred to as hire and reward insurance. Hire for reward is self-explanatory, you as a driver are rewarded for being hired to drive a passenger from A to B or deliver goods from A to B. Hire for reward applies to both taxi drivers and private hire drivers.
Types of PHV Cover
If you are using your car for private hire, comprehensive insurance is recommended to provide cover when an accident happens.
Is Private Hire Insurance Pay Monthly Available?
Yes, most private hire insurance brokers will let you pay on a monthly basis. This is popular if you are just starting out or working a few months per year.
Who is Required to Have Private Hire Insurance Monthly?
Those operators of any hire for reward vehicles that can’t be called from the curb are required by law to have PHV insurance. This includes operators of private chauffeur companies and on call taxis, along with Uber and other ride-share services. Because Uber was instrumental in starting this disruptive private hire booking service, the cover is often referred to as taxi insurance for Uber drivers.
Since every private hire operator is different, each policy can be tailored made to meet their specific needs, budget and requirements.
What Road Insurance is Required by Law for Private Hire Drivers?
Commercial vehicle comprehensive or third party only vehicle cover is required by UK law.
This area of cover is called road risk. This is cover for when the vehicle is involved in an accident. When you are at fault, third party cover will only cover the other vehicle. With comprehensive, both vehicles are covered along with the passengers possessions independent of who is at fault.
Is Private Hire Insurance Available for Electric Vehicles?
The electric vehicle is now becoming a popular choice with private hire drivers, expensive, but the payback is the saving on fuel. To get the most savings, make sure you charge your EV at home, as charging stations can work out as expensive as using fossil fuels. Choosing the best electric private hire vehicle for your requirements and budget is important, with the MG5 Estate a firm favourite with its expectational luggage space and budget price.
What Cover is Optional For a PHV Insurance Policy?
There are three main areas of additional cover a private hire operator can have to help ensure their business can remain operational independent of the obstacles that are encountered. These three items of optional cover include breakdown assistance, public liability and fleet covers. Each of them has multiple layers of cover so that the private hire operator can have the coverage they need that fits their budget.
How Much Does Private Hire Vehicle Insurance Cost in the UK?
The price will depend on a number of factors, most of which are used to determine the costs of standard car insurance, for example the driving history and age.
The driving records include involvement with accidents, both the driver's fault and when just a victim. Also included are the number of road violation summons issued to the driver. The more activity in these areas, the higher the insurance premiums will be.
The criminal record of the operator also influences the cost of the insurance premium. This includes both drink-driving offences and other criminal offences. If you have points on your licence, expect to pay a higher premium.
The vehicle value and its maintenance records also play a part in determining the cost of the insurance premium. The vehicles with the highest risks are expensive vehicles and old vehicles that have been maintained poorly.
Taxi private hire insurance is available for drivers using these apps:
Why is Private Hire Car Insurance Expensive?
The key reason is that you will be covering many more miles than a traditional driver. Add to this working in all weather conditions, late at night and working within time constraints. All these just make you statistically a higher risk to the taxi insurance provider, and this is reflected in your private hire car insurance policy premium.
Steps To Lower the Cost of Private Hire Taxi Insurance
The major factors that affect the price will be your driving history, size of your private hire taxi vehicle and miles covered. We have listed some of the ways that can help to reduce your annual premium below.
Optional Add-ons
The taxi breakdown cover is another option to consider. Not only will aid be sent to assist you with the problem, but your clients can be taken to their destination, which will keep your reputation as a reliable driver intact. It is important to choose a reliable car for private hire use, so time off the road is minimal.
PHV insurance is a requirement by the UK government for anyone that can be called to take a client to their destination in return for a reward.
PHV UK Insurance FAQ's
Can my taxi be used for personal use?
Taxis can be used for personal use, but this must be included in the insurance policy, if not ask the broker to include private use.
Is Private Hire Taxi Insurance London Available?
A private hire policy is not limited to any one location within the UK. This means that your policy will cover you if you wish to provide private hire service in London, Manchester, Liverpool etc. The cost of London private hire insurance may be more expensive as risks of theft is higher in highly populated locations.
Why Does Taxi Insurance Cost So Much?
The key reason that insurance premiums for taxi drivers are normally higher than car insurance is that driving a hire for reward vehicle comes with additional risks. An obvious example are the long hours most cab drivers spend on the road, come rain or shine. This leads to an increased risk of accident and subsequent claim. Add to this the fact that you are also dealing with members of the public inside and outside your taxi, leaving you open to liability claims. All these taken together add more risk on the insurer, which is often reflected in higher final premium.
Does my taxi insurance cover me for driving other cars?
Taxi insurance only provides cover for the vehicles that are listed on the policy schedule. If you need cover to drive another vehicle, you will need to either the vehicle including in your existing schedule or take out a new separate insurance policy.
Can I pay my taxi insurance on a monthly basis?
Most brokers are flexible when it comes to arranging payment terms. However, choosing monthly payments may include extra interest charges, afew provider are now offering pay as you taxi insurance aimed at seasonal drivers.
Is public liability insurance included?
Please check with your insurance provider. Some taxi insurance providers will include public liability as standard or offer it as an additional extra. Please check with your policy provider or check your policy wording.
Is Taxi breakdown cover available as a standalone policy?
Yes, this can be bought as a separate policy or bundled into your taxi insurance policy. If you are driving a new taxi, taxi breakdown cover may already be included by the car manufacturer for the first few years.
By Eamonn Turley from the MultiQuoteTime Editorial Team - Fact checked July 2024