Points To Consider While Buying Private Hire Insurance

Points To Consider While Buying Private Hire Insurance

What is the liability factor of the private hire business?

Private hire insurance is mandatory for companies that run private hire service. However, the requirements vary for every company. Since the insurance policy is subject to our liability and risk factor, you should evaluate your risks before buying the policy. The risks that should be considered are the risks of accidents, vandalism, fire and theft. If your vehicle has a safe parking place as in a garage or within your own company, then you can cut down the risk due to vandalism and violence. Further, since the taxi is outdoors only if there is a booking, the amount of time spent on the road will also be less. You can consider the skill of your driver. If he is skilled and experienced and had no accident record, then you can negotiate your insurance amount further. Hence, by studying the risks that you are exposed to is the basic factor to consider while buying private taxi insurance.

Are you eligible for the discounts that the private hire insurance company offers?

Insurance companies dish out discounts based on the performance of your company. For example, if you have a clean taxi driving record and have not made claims for a long period, then you are eligible for a “no-claims” bonus. When you contact the insurance company for insurance, ask for the available discounts. Discounts are also offered if the owner of the taxi is also its driver. You can also get a discount if you insure your whole fleet under one policy.

Does the policy provide cover if your driver is at fault?

Many insurance companies back out of providing cover if accidents occur due to the fault of the driver. Make sure that such clauses do not exist in your contract. These kinds of clauses are loopholes, which give scope for the insurance company to back out when accidents occur. Irrespective of whether the driver is at fault, insurance should cover driver, passengers, third party and damage to vehicle.

What are the terms and conditions of the policy?

Terms and conditions are the most important factor to consider while buying private hire insurance policy. Examine the terms related to releasing claim amounts like how much time the company takes to dispatch claim amount and what are the situations under which claims are rejected. If possible, find out the history of the company and collect statistics relating to the number of claims made by customers against the number of claims sanctioned. Look for hidden costs in the contract before signing the deal.

Are all your requirements covered under the policy?

Private hire insurance will not be of much use to you if you do not receive all the covers that you require. Therefore, go through the policy documents to check for all the covers and see if they are up to your needs. If you find covers that you do not require or if the covers you require, are missing, then you should get them corrected before finalizing the contract. You can take a couple of expert opinions to be sure of your policy coverage.