Taxi Insurance vs Car Insurance: What’s the Difference?
Many drivers are unsure about the difference between taxi insurance and personal car insurance. Our experts at Riviera Insurance are here to help. In this article, we breakdown what each one is, what the differences are, and the specific needs each one meets.
Let’s explore the key differences.
What Is Personal Car Insurance?
Personal car insurance is a legal requirement for anyone driving on UK roads. It protects you and other drivers in an accident. There are three main types of personal car insurance: third-party only, third-party fire and theft, and comprehensive car insurance.
This type of insurance is for personal use only. It doesn’t cover professional use like carrying paying passengers. Personal insurance is usually cheaper than taxi insurance because it involves less risk and mileage.
What Is Taxi Insurance?
Taxi Insurance is designed for drivers who carry passengers for hire or reward. It is legally required for all taxi drivers. There are two main types:
Public Hire Insurance
This type is for vehicles that can legally pick up passengers without a prior booking, such as black cabs. These vehicles are licensed to “ply for hire” and can be flagged down on the street or hired at a taxi rank.
Because of the increased public interaction and potential risks involved, public hire insurance is typically more expensive than private hire insurance.
Private Hire Insurance
This insurance is designed for vehicles that carry passengers who have booked in advance. Services like Uber, Bolt, or local minicabs fall under this category. Private hire vehicles are not allowed to pick up passengers off the street or at taxi ranks.
If you’re working through a ride-hailing app or run a pre-booked service, this is the insurance you’ll need.
Taxi policies cover longer hours, more miles, and the added risk of carrying passengers daily. This type of policy can be enhanced to include public liability insurance, breakdown cover, guaranteed replacement vehicle cover and excess protection.
What Are the Key Differences?
Taxi insurance usually costs more per-month than personal car insurance. This is due to higher risk, longer hours, and greater liability. Taxi insurance requires specific licencing and vehicle inspections. Personal car does not.
Personal insurance policies do not allow you to carry passengers for payment. Doing so would invalidate your policy.
Which Is Right for You?
Personal Car Insurance
You need standard car insurance if you’re using your vehicle for personal use only. Driving to work, going on holiday, or visiting family, these are all covered under a standard policy.
You might be wondering if you can use your personal car for business purposes, even if only occasionally. You cannot. If you use your personal car for business at all, you must tell your insurer and add the right level of business use. If you do not, then you may find yourself without any coverage.
Taxi Insurance
You need Taxi Insurance if you’re using your car to earn money by transporting passengers. Whether you’re a full-time cabbie or driving part-time with a ride-share app, a standard policy is not enough.
Using a personal vehicle for work without the right insurance is illegal. You won’t be covered in case of an accident, and it is also considered a form of insurance fraud. This can even lead to heavy fines or prosecution.
Contact Us for Specialised Car Insurance
At Riviera Insurance, we offer competitive quotes for car insurance policies. Our policies cover a wide range of uses, from personal use and individual taxis to fleets and motorhomes.
No matter your needs, our expert team can help you find the correct policy for your needs and budget.
Contact us today for a no-obligation quote and expert advice on the cover that suits your lifestyle.
