If you are using your own PCO licensed vehicle then you will need to have your own private hire insurance and as with insuring any car this doesn’t come cheap and you will need to shop around for a good deal. If you are under 25 then you will also find that premiums can be very high, with some companies not even offering insurance to those in the 21-25 age bracket.
Can I use my existing car insurance?
Due to the nature of the job you will need a policy that will cover the use of carrying passengers for hire or reward, and most standard car insurance policies do not include this. It may be worth checking with your provider as to whether they offer this ‘upgrade’.
How much does minicab insurance cost?
Typically a years insurance will cost around £2,000-£2,500 for fully comprehensive insurance on a standard saloon car, but there are a variety of factors that can effect this, but remember that not all insurance companies offer the same prices so shop around. If you feel that you can’t commit to paying this amount then you will find that most insurance companies will offer 3 month and 6 month policies as well as the standard 12 month, but the downside is that you will not be able to build up your no claims bonus with a short policy.
How can I reduce the cost of my insurance?
Buying a private hire insurance policy is just like getting insurance for your own private car so think of what you look for when getting that.
Levels of cover
You can choose from three levels of cover: comprehensive, third party fire and theft and third party only. Your choices for this will depend on the age and value of your vehicle. Fully Comp insurance will obviously cover everything but you will pay more, where as third party insurance will only protect your customers and other vehicle involved if you have an accident so you will be responsible for costs to your own vehicle, but it will bring down insurance costs closer to the £1,000 mark.
No claims discount
The no claims discount will only apply if you have no claims from another private hire insurance policy, you cannot normally transfer NCD from your personal car to your minicab, but it is worth mentioning anyway as you could get some sort of discount. If you do build up your no claims you will get a substantial discount on your private hire policy ranging from 20% up to 60%. Having a clean driving license with no offences will also reduce costs.
Adding extra voluntary excess on to your policy can save you money off your private hire insurance in the short term, but if you do increase the excess and have to make a claim then any savings will be lost. Compulsory Excess will normally start at around £250, so get quotes for increasing the level as see what the difference it.
Where can I get cheap private hire insurance?
There is no definitive answer to this as it’s not a straight-forward cost and depends many factors, so the best advice is to get as many quotes as you can. This may take a few hours longer but could end up saving you hundreds of pounds, so it’s well worth it. If you find that insurance costs are too high then you may consider renting a vehicle from your operator which will normally cover insurance and all other costs for about £35 a shift, which in some circumstances may prove cheaper than using or buying your own vehicle and having to insure it.
Replacement vehicles – a final note
If your vehicle breaks down or you are involved in an accident and your car needs to be repaired then it means you are not working and you are not earning, so it might be worth looking for an insurance policy that offers breakdown cover and replacement PCO licensed vehicles so you can still work. Costs for this will vary and so may not be an option, but when shopping for policies ask for a quote with this added and you may be surprised at how little extra it costs (or how much more!)