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The private hire insurance is a speciality type of cover to financially protect those that take third party clients to their destination as a hire for reward type of service. 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.
What is hire for 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.
What is private hire insurance?
Private hire insurance is an insurance cover for drivers that provide a driving service, but it must be pre-booked. Remember 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.
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 monthly available?
Yes, most 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?
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
Since every private hire operator is different, each policy can be tailored made to meet their specific needs, budget and requirements.
What 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.
What 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 off standard car insurance, example the driving history and age.
The driving records include involvement with accidents, both the drivers 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 recent offences 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 the following apps:
Why is private hire car insurance so expensive?
The key reason is that you will be covering many more miles that 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 broker and this is reflected in your private hire car insurance premium.
Can my taxi be used for personal use?
Yes, as long as your insurance policy includes this.
How can the cost of private hire insurance be lowered?
The major factors that affect the price will be your driving history, size of your cab and miles covered. We have listed some steps below, that you can take to reduce your annual premium .
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.
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.