Private hire insurance is a type of insurance that covers the cost of repair or replace your vehicle if stolen or damaged. It also covers any passengers who are travelling in the vehicle at the time of an accident. It’s important to note that you must not be using your private hire (minicab) vehicle for earning money if you want pay-as-you-go cover – this will only be available for vehicles that are used exclusively for personal use.
This article discusses how best to find private hire insurance. And also about how much it may cost you per year, and so on.
What does private hire insurance cover?
The primary benefit of private hire insurance is that it provides you with financial protection when your vehicle is stolen or damaged. It also covers any passengers who are travelling in the vehicle at the time of an accident.
Provided you lose your vehicle, and you have private hire insurance on it, you can get your car back as long as your car is insured, your policy details are legible and you have proof of ownership (eg. a valid MOT certificate)
Some private hire insurance policies even cover replacement vehicles, if yours has been damaged by an accident.
The amount of cover you receive will often depend on several different factors. Firstly, your vehicle’s make and model – the more up-to-date the lower the premium. Similarly, the higher the speed of your vehicle, when it’s involved in an accident, and how many people are travelling in it at any one time will also have a big influence on your policy’s cost.
Your private hire insurance provider (eg. AIG) must be able to tell you what type of car you’re driving to determine whether you need a full or multi-peril policy.
Will I have to pay higher insurance costs if I have a limited-validity registration plate?
The answer to this one is probably going to depend on the type of car you have owned, and the state it’s registered in. Generally, younger cars with a low original mileage will be classified as low-value vehicles. Therefore, they will be more expensive to insure. Therefore, this is something you should definitely factor in when comparing insurance quotes.
Step-by-Step Guide on Getting Private Hire Insurance
- First and foremost you will need to find an insurance broker. You can do this by using a number of websites that offer quotes. On comparison sites, you should be able to get quotes for private hire insurance based on your postcode and the make, model and mileage of your car.
- Once you have a few quotes in, it’s time for you to make decision on which policy best suits your needs. It is important to consider how much cover the policy will provide and how much this will cost. Bear in mind that different providers may give cover at different levels. So don’t just go with the first option that sounds good; compare as many as possible before making a final decision based on price, level of cover and customer service received.
- Sometimes a policy will only provide you with theft and damages cover – this means that if your vehicle is stolen but the passenger at the time of the accident was not, then you can ask for money to replace your car. However, if there is a passenger in the vehicle, then they may also claim for injuries or other related expenses. You need to make sure your insurance covers this as well. These days most insurance companies will provide you with an umbrella policy that will cover all of these eventualities.
- There are also numerous other additional benefits to consider when choosing the right policy. For example, some policies include a gap insurance scheme whereby your excess could go up in the event of any repair or replacement work being needed on your car. This is excellent if you find yourself having to spend large amounts on getting your vehicle back on the road, as it can mean that you’re not really out of pocket at all. You should definitely find out if this feature is available with your chosen policy.
- Most private hire cover also comes with some form of legal assistance cover. This may be for you if you are found to have been responsible for an accident that damaged another person’s property or resulted in their death. It will also cover you if you find yourself involved in a hit and run accident. It happens only if you had been the innocent party and not the driver of any other vehicle involved in the collision.
This feature can protect you from financial ruin if your circumstances force your hand to take things into your own hands or get out of a dangerous situation that cannot be avoided by doing nothing – though it is always preferable to get legal help as soon as possible.
- By having private hire insurance on your car, you are less likely to end up being sued. This can be a good thing if you have been involved in an accident and the other party thinks that they were not at fault. There is also less likelihood of police involvement, as getting caught driving without car insurance will result in a costly fine or even a court appearance.
- You may have some other options for car insurance. But, private hire insurance can still be the most cost effective option. You will also receive a number of benefits. Many of those benefits cannot be matched by either third party or comprehensive policies.
All of this information should help you get your private hire insurance sorted. You can also search for a private hire insurance broker.
FAQs about private hire insurance:
1) What is private hire insurance?
Private hire insurance is a type of policy. It provides you with insurance to cover the use of a car, mini bus or other private hire vehicle.
2) What type of vehicles can I insure under private hire insurance?
You can insure any car, minibus or lorry which is being used commercially; example: for events (such as weddings), business and/or tourism.
3) What types of cover does a private hire insurance policy include?
Private hire coverage can include various benefits including: third party, theft and damage. The key thing to look out for is the gap or excess. This usually applies when you are involved in an accident; or you have to pay for repair work on your vehicle.