Black taxi insurance or London taxi insurance is a type of commercial insurance specifically designed for the iconic black cabs and regular taxis in London. It’s issued to drivers that are licensed to drive a black or regular taxi. London taxi drivers are faced with many risks, and they need to protect themselves, their cars, and clients. If you are a taxi driver, you should get the best insurance for adequate coverage.
“Black taxi insurance” and “London taxi insurance” are terms that are often used interchangeably. The iconic cabs are authorized to operate within central London, while London taxis are licensed taxis in Greater London, including those operating in outer boroughs.
London taxi insurance typically includes additional coverages like higher passenger liability, accidental damage to the iconic black paintwork, and specialized breakdown assistance. Due to the increased risks and regulations associated with black cabs, insurance premiums may be higher compared to private hire insurance.
While pricier than regular car insurance, taxi insurance covers both the vehicle and the paying passengers during journeys.
Black taxi insurance protects the driver of a black taxi against legal and financial losses and accidents. It ensures that your business is safe and in case of an accident, you are covered. To operate a taxi in London, you must have a London taxi insurance.
If you primarily operate within central London with a black cab license, black taxi insurance is the best choice. If you operate in outer boroughs or drive a regular taxi, London taxi insurance will suffice.
Similar to other car insurance policies in the UK, London taxi insurance comes in three primary types:
- Third-party insurance: Third-party insurance covers the driver of the taxi against third party liability. As such, it covers a black taxi driver against injuries and damages he causes to other people. It is the minimum cover one can get in the market. The cover does not cover your taxi against damages or the driver against damages.
- Third-party, fire and theft: In addition to third party coverage, it provides extra protection to your car against theft and damages caused by fire. It does not cover your taxi if it gets damages from an accident. It goes on to provide third party coverage, so that if you damage other people’s property or injure other people, it covers the driver against liability.
- Fully comprehensive cover: The fully comprehensive cover contains the third party and third party, fire and theft covers. The policy goes ahead to cover the driver against injuries. As such, it provides coverage for medical treatment and accidental damages.
Commercial Black Cab Taxi Insurance offer additional coverage compared to basic Black Taxi Insurance, such as legal assistance for regulatory issues, breakdown cover, lawsuits, or loss of earnings. It usually has higher eligibility standards than Black Taxi Insurance. This might include requiring a minimum number of insured vehicles or specific driver licences. Additionally, it may be more expensive due to the wider range of coverage provided.
There are different types of commercial taxi insurance, among them:
- General liability insurance: It protects the owner of the black taxi or the driver against general liabilities like injuries and lawsuits from clients.
- Public Liability Insurance: The public liability insurance cover is essential insurance that covers the taxi driver against compensation claims. For instance, passengers can claim that they lost their luggage while inside your taxi. This policy will cover you against such liabilities.
- Black cab breakdown cover: This is essential insurance coverage that covers your taxi vehicle when it breaks down at the roadside.
- Employer’s liability: If you hire a driver for your taxi business, you need employer’s liability. This cover protects the employer against liabilities arising from employees working directly for you.
London taxis attract higher premium because they face different risks compared to private hire taxis. London taxis can pick up passengers on the street and operate in busier areas, leading to a higher risk of accidents and claims. Private hire taxis, on the other hand, are pre-booked and operate in a more controlled environment, potentially reducing the risk. Adding additional drivers to your policy increases the risk for the insurance company. The insurance company needs to assess the driving experience and history of each additional driver to determine the overall risk.
While your car choice can influence your insurance costs, finding cheap taxi insurance goes beyond simply buying a specific type of vehicle. Here are some key steps to help you get cheap black taxi insurance:
- Building a no claims discount: If you are a safe driver with no record of accidents, the insurer will give you a discount so that your premiums are cheaper.
- Driving safely to avoid accidents and injuries: to other people’s property, third parties, and yourself.
- Security discounts: Some insurers provide security discounts if the owner has set up security measures for the taxi. You need to install security features in your cab like an alarm, dashcams, immobiliser, etc.
- Park your taxi in a garage: Taxis are parked mostly in the streets, which increases insurance premiums. If you park your taxi in a safe garage, this should help you to bring down your taxi premiums.
- Shop around to get the best and cheapest cover: Do not go for the most affordable black taxi insurance. Instead, get one that provides you with adequate coverage. Assess the prevalent risks for your taxi business and ensure you are covered enough against them.
Read also: How to find cheap taxi insurance
There are a number of companies that offer low-cost black cab insurance in the UK. Some of the most popular providers include: