Accidents are extremely unpredictable and because of this they usually catch people unprepared. Accidents are something that are unforeseeable and even an extremely safe driver is susceptible to some other driver hitting his car. However, if you do not drive your car all the time, then the possibility of some mishap occurring to your vehicle gets reduced drastically. This is a comforting idea for people driving private cars.
Unfortunately, such concepts are not really applicable to taxi drivers. When the majority of the life of the car is spent on the roads, then the chances of some kind of an accident happening will rise drastically. If you own a taxi and are unfortunate enough to get caught in some kind of an accident, then you would have to pay through your nose to get the damages repaired. A taxi insurance policy has been created to prevent exactly such a scenario. Therefore, a taxi that has been in an accident and is covered by an insurance policy would not require the taxi owner to spend a lot of money in repairing the damages because the insurance provider would take care of the expenses.
Furthermore, with taxis, the likelihood of some kind of a legal hassle resulting from an accident is also much more likely. The reason for this is that apart from the other car, the passenger that the taxi is ferrying might decide to sue the taxi owner or taxi firm for any personal injury or damage to their property. A taxi insurance policy is particularly formulated to cater to such contingencies and protect individual taxis and taxi companies from going under due to some legal case.
There are two types of taxi insurance policies and they differ on the basis of the taxis that they provide cover for. The first type of insurance policy would cater to public taxis i.e. taxis that drive around the whole day looking for passengers. The other variant of these insurance policies is the policy for private hire taxis. Of the two, it should be noted that insurance policies for private hire taxis are cheaper in nature because of the relatively reduced risks.
Due to the increased chances of damage through accidents and legal hassles from third parties such as another driver and passenger, a taxi insurance premium would cost more than a normal car insurance policy. However, this does not mean that you will have to pay a lot of money to be able to run a taxi or a taxi firm.
An affordable taxi insurance policy can be found online if you do some diligent research on the subject. The best way to find an affordable insurance policy is to ask multiple online providers for their respective taxi insurance quote. A taxi insurance quote online is a type of offer from the insurance provider containing the total cost of the policy, the kind of insurance premium you will have to pay, the cover features, as well as many other things.
Neil Anderson is a UK based finance specialist who provides advice and information about a wide range of products including Taxi Insurance. Find out more by visiting his preferred website DNA Taxi Insurance.