How Important Is Cab Driver Insurance?

Cab driver insurance is a specialist type of motor insurance designed for drivers of vehicles used for paid hire, this includes Hackney cabs, minibuses, taxis and cabs. If you are a cab driver it is essential that you have appropriate cab driver insurance in place as this is the minimum required by law, as stated in the Road Traffic Act 1988.

As a private hire operator your standard motor insurance does not cover you and your passengers as part of a business, only for personal use. It does not matter whether you work as a cab driver 7 days a week, or just on a casual basis you still need adequate cab driver insurance.

There are two major types of cab driver insurance, either public hire or private hire, depending on the type of cab you drive. Public hire is associated with black cabs or any vehicle that will pick up customers without an advance booking, private hire vehicles only take passengers who have pre-booked.

Cab driver insurance should provide you with all the cover you would expect from a standard motor or vehicle insurance policy, but with added extras. For example, you might find that you require public liability insurance, legal cover, employer’s liability insurance and other forms of insurance that need to be included onto your policy.

Being a cab driver has more risks than a typical motorist as you are more likely to be driving late at night, have multiple passengers, drive through rough areas and inner cities, and cover many more miles in a year. All these things mean that you are more likely to be involved in an incident.

When searching for cab driver insurance it is so important that getting a policy that provides you with adequate cover is your priority. Losing your vehicle or having to pay out thousands of pounds in compensation can cause you and your business serious problems, so insurance is not something you should ever skimp on. You can get third party policies which are legal, but you might find yourself struggling if you are involve in an incident as this insurance only covers the cost for the other person.