Private Hire Vehicle Insurance is insurance coverage for taxi drivers who have been booked in advance by their clients ahead of time. It is also known as private hiring insurance and award insurance. This insurance would be meaningless if a private hire cab picked someone up off the road without a prior reservation.
Private hire insurance is required for taxi companies or taxi drivers that operate for a company that provides pre-booked lifts to preferred locations.
Customers working for driver applications like these must opt for private hire insurance or else they will not be able to pick up people calling cabs from the side of the road.
Stages of Private Hire Taxi Insurance
There are 3 stages of Private Hire Taxi Insurance,
- Fully comprehensive taxi Insurance
- For Third-Party only
- For Third-Party, Fire, and Theft
Fully Comprehensive Taxi Insurance
Comprehensive or fully comprehensive taxi insurance will provide you with all of the perks of third-party, fire, and theft insurance as well as some additional coverage. Some plans will cover any losses that occur in the event of an accident, including the price of any medical care that may be required as well as any unintentional damages.
This insurance policy provides the greatest degree of coverage available, and many people feel that it is the most premium policy. In some circumstances, this is correct, but in many cases, it is not that expensive to be protected by a full comprehensive coverage.
The most common policy among those obtaining taxi insurance or ordinary auto insurance is comprehensive coverage. Being protected from all possibilities is preferable in the long term and can financially assist you if an accident occurs that is your responsibility.
For Third-Party Only
Third-party taxi insurance is perhaps the barest minimum of protection available. This insurance is the required minimum for your vehicle to be legally valid on the road, which is something every people desire.
If you are at fault in a car accident, this coverage will only reimburse the price of damages to somebody else their property, not you or your automobile.
For Third-Party, Fire, and Theft
Third-party, fire, and theft insurance provides the same coverage as a third-party policy, but with the added reassurance of being insured if your automobile is destroyed by fire or stolen.
The insurance would not cover for road traffic crashes that were determined to be your fault, leaving any harm to you or your car to be resolved by you.
Difference between a private and public hire insurance
A public hire vehicle is a taxi that is authorized to operate like a public transport, i.e. a cab that you may waive down and do not need to reserve ahead of time. A private hire car, on the other hand, is a taxi that the customer must schedule in advance.
Both Public Hire Vehicle Insurance and Private Hire Vehicle Insurance include Hire and Reimbursement protection — a type of insurance that allows drivers to lawfully transport other people’s products or members of the public for a charge.
However, Public Hire Insurance and Private Hire Insurance are not the same, and the licensing authority to whom you are liable will want a copy of your insurance certificate to confirm that you have the proper coverage.
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