Minicab Insurance Buying
Purchasing Minicab Insurance in
the UK may be quite a daunting task, especially if itís your first time.
This is partly due to there being so many different insurance and
licensing requirements from one region to the next. However, itís mostly
due to there being so many different taxi insurance schemes available on
In order to obtain the right type and amount of insurance, you need to
understand the UK taxi insurance purchasing process. Once you know the
process, it becomes much easier to find and purchase minicab insurance.
Fortunately, the insurance purchasing process is not difficult to learn.
There are only
six basic steps to follow when purchasing minicab
insurance. However, before you start the purchasing
process, you must first realise what primary category
and subcategory of taxi service providers you belong in.
By common definition, minicabs belong in the primary
category of Private Hire taxi insurance schemes. This
means they can only pick up passengers who have
pre-arranged the ride through a licensed operator.
The subcategory you belong in depends on what specific
clientele you cater to, and the type of vehicle you use
for your minicab services. Each type of taxi service
presents its own types of risks and insurance
requirements. Some present less risks than others, so
may be less expensive than those with higher risk
However, prior to purchasing minicab cover, you must
first meet certain other prerequisites. You must have
your vehicle registered with the UKís Driver and Vehicle
Licensing Agency. If your vehicle is more than three
years old, you must get a Ministry of Transport
certificate verifying it is roadworthy. Also, you must
fully pay the road tax before applying for minicab
The six insurance
purchasing process steps are:
1. Conduct a thorough risk assessment: Consider every
risk you may face, both daily and less frequently. Be
sure to include every aspect of your daily business
operations, as well as any personal lifestyle habits
that might affect your taxi business if any claims are
made against you or your employees. Also take into
consideration how any claims made against you or your
taxi service may affect your personal assets and
personal lifestyle. Be sure to consider the value of
each asset, and the cost of replacing or repairing it.
Check to see what cover you already have in place that
might help to reduce the risks.
2. Carefully estimate what you can comfortably afford
to spend on insurance: After assessing your risks,
decide which ones you can afford to take without
insurance, and which ones you will need cover for. Are
there any risks you can eliminate or reduce by paying
for the repairs or replacements yourself? Are there any
risks you can decrease by investing in more security
measures or safety devices?
3. Eliminate and reduce risks: Follow step two up with
action, and install the upgraded security and safety
measures. Do everything you can to lower the risks of
theft, fire, vandalism, and accidental damage to your
vehicle(s), building and its contents, and any other
property involved. Also eliminate or reduce the risk
level for assaults and personal injuries to yourself,
your employees, and your passengers. The lower the risks
presented, the lower your insurance costs will be.
4. Do some in-depth comparison shopping: Once you know
exactly what you want to insure, shop around for the
right insurer and right cover. The quickest and least
expensive method of comparison shopping is to utilise
the Internet. Merely go online and visit several
insurance comparison sites, as well as insurance
brokers/specialistsí web sites. Fill out the forms as
accurately as you can. After submitting the forms, all
you have to do is wait for insurers to respond to your
requests for quotes. Itís best to make up a list of
questions ahead of time, so you can ask them when the
insurers contact you. Be sure to ask about any discounts
you may qualify for, and what criteria they are basing
their premium rates on. Get quotes for single cover as
well as combined cover. Also get quotes for ďAny DriverĒ
and ďNamed Drivers OnlyĒ if you have multiple drivers
for your minicab.
5. Carefully compare the offers: Once youíve obtained
several offers, compare them to each other. Just
remember that the cheapest price upfront might not be
the cheapest in the long run. Look for any hidden
charges and fees, and be sure you understand exactly
what is and is not covered. Read all the inclusion and
exclusion clauses extra carefully, and if you donít
understand what they mean, ask questions! Also remember
to check out each insurance companyís reputation and
financial security, as well as how efficient their
customer care services are.
6. Purchase the cover: Once you have selected the
insurer and the insurance cover, follow the insurerís
instructions to purchase it. Nowadays, numerous insurers
will let you purchase policies online or will give you
Itís essential to thoroughly read through your
insurance cover once you obtain the documentation. You
must ensure that all the information is accurate and
up-to-date, and what you agreed upon. Any false or
inaccurate information could make the insurance contract
void, and the insurer could refuse to honour claims
then. Be certain you keep your policy and other
insurance documentation with you at all times, as you
can be penalised if you are not able to produce it.
Now that you have learned the taxi insurance purchasing
process, buying minicab insurance will be less daunting.
If you follow these steps every time you need to renew
or purchase new cover, you may save even more money.
Although the required levels of insurance may change
over the years, the minicab insurance purchasing process
will most likely remain the same.
discuss your taxi insurance with a real live person?
Speak to Insurance Choice on 0844 55 77 926
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