Are you a taxi driver who’s confused about the ins and outs of insurance? Do you believe in some of the common myths associated with taxi insurance? As a taxi driver, it’s important to have the right insurance to protect yourself and your passengers. However, the abundance of information available on the internet can make it difficult to separate fact from fiction. In this article, we’ll debunk some of the most common insurance myths and provide you with the facts you need to make informed decisions. From the belief that personal car insurance is enough to cover a taxi to the misconception that insurance is too expensive, we’ll set the record straight. So, let’s get started and discover the truth behind these myths.
Myth #1: Personal auto insurance covers taxi drivers
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One of the most common myths surrounding insurance is that personal auto insurance is enough to cover taxi drivers. However, this couldn’t be further from the truth. Personal auto insurance policies are designed to cover personal use only, which means that if you’re involved in an accident while driving your taxi, your personal auto insurance policy won’t cover you. Taxi drivers need commercial auto insurance to protect themselves and their passengers. Commercial auto insurance policies are specifically designed for businesses that use vehicles, such as taxis, for commercial purposes. These policies provide coverage for bodily injury and property damage liability, as well as collision and comprehensive coverage.
Myth #2: Commercial insurance is too expensive for taxi drivers
Another common myth about taxi insurance is that it’s too expensive. While it’s true that commercial auto insurance can be more expensive than personal auto insurance, it’s important to remember that taxi drivers are exposed to a higher level of risk than the average driver, typically driving three to four times the average annual mileage. This is because they’re driving for long hours, often in crowded urban areas, and dealing with a variety of passengers, some of whom may be under the influence of alcohol. When it comes to the cost of taxi insurance, there are a number of factors that can affect the premium you’ll pay.
Myth #3: Insurance is not necessary if you have a clean driving record
Some taxi drivers believe that they don’t need insurance if they have a clean driving record. However, this is not true. UK Law requires every driver to have a valid vehicle insurance in place, before they drive on the road. Even if you’re a safe driver, accidents can still happen, and if you’re not properly insured, you could be held personally liable for any damages or injuries that occur. In addition to liability coverage, taxi drivers could also need comprehensive coverage to fully protect their vehicles.
Myth #4: All insurance policies are the same
Another common myth about insurance is that all policies are the same. However, this couldn’t be further from the truth. Insurance policies can vary widely in terms of coverage, exclusions, and excesses. It’s important to carefully review the terms of any policy you’re considering to ensure that it provides the coverage you need. When shopping for insurance, it’s a good idea to get quotes from multiple providers to compare coverage and costs. Look for a provider that specialises in taxi insurance and has experience working with taxi drivers. It’s also a good idea to ask other taxi drivers for recommendations and to find reviews online.
Myth #5: Monthly policies are cheaper than annual ones.
Finally, some taxi drivers who buy their taxi insurance monthly believe it’s a cheaper alternative. Whilst paying monthly can be considered more convenient, drivers who have monthly policies are unlikely to build up any no claims discount and enjoy discounted premiums in future years. Also, if a monthly policy isn’t renewed, when a driver is on holiday, for instance there will be no cover in place to protect the vehicle from theft and the vehicle will legally have to be stored off the public highway. To make paying for premium more convenient, lots of insurance providers will have monthly payment options in place for annual polices.