Minicab Insurance Buying Guide

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 the market.
 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.

Purchasing process prerequisites

 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 levels.
 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 insurance.

Purchasing process Steps

 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 directions online.
  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.

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