London Taxi Insurance
For London cab drivers, their vehicle is their business which enables them to provide a living for themselves and their family. This is the main reason that they need to ensure that their business tool is well serviced and maintained and properly covered with a London taxi insurance policy for any accidental and liability claims. To protect their business asset the London cabbie must adhere to all legal obligations and follow the framework of the London Public Carriage Office (PCO). The PCO is the regulatory body in the Capital that looks after both vehicle and driver licensing. As well as issuing new and renewing existing badges and permits the PCO can also suspend and revoke licenses if they feel the cab owner is complying with any licence conditions.
PCO minicab insurance is available for the pre-booked section of the hire reward trade which is officially known as private hire. Most of these minicab drivers are self-employed individuals with own cars and are also responsible for maintaining and insuring these motors. The drivers work for a private hire operator who gives out jobs via a two way radio or through mobile devices such as interactive PDA’s. In turn, the private hire drivers pay the operator either a commission percentage or a flat fee, depending on the operators’ business model. Minicab drivers can get PCO insurance through various channels such as brokers or even through a few insurers that also offer their products directly to the masses.
The hackney carriage vehicles also need to be protected but they need a London black cab insurance policy that is worded for the protection of these public hire vehicles. Go to the London city centre at anytime and you’ll see these iconic motors ferrying tourists, locals and business passengers to their destinations quickly and safely. These cabs are also allowed to use the London bus routes so they often bypass traffic hotspots. Furthermore they also display a copy of the London taxi insurance certificate within the cab so passengers can clearly see that it’s a legal and licensed vehicle they are using. Surprisingly some of the older London black cabs are also used by certain individuals for their own personal use under a ‘social, domestic and pleasure use’ insurance policy. These vehicles can easily clock over 500,000 miles if well maintained and regularly serviced.
A London private hire insurance policy costs more than its counterpart the London public hire. The black cab drivers go through a strict knowledge based test that can take years to pass. This means that when a new hackney carriage driver comes through the ranks they will have passed numerous tests and also have gained considerable experience in the process. Statistics show that these drivers will have fewer accidents than the minicab drivers.
Taxi insurers use many statistical pieces of information before they produce a rating guide. Some information relates to types of vehicles, moral hazard, age and geography to name a few. Over time they fine tune these London minicab insurance rates and are always adapting the climate. Hence rate vary from one month to the next and in some cases on a daily basis but most providers honour a quotation given for a period of 30 days.