Public and private hire taxis may seem similar, but they have critical differences, especially regarding insurance coverage.
This article will explore these differences, shed light on each insurance requirement, and clarify the relationship between private hire taxis and ride-sharing services like Uber. You can click here for Quoteradar private hire insurance services.
Key Takeaways:
- Public Hire and Private Hire insurance are two different types of coverage uniquely crafted for the taxi industry, each with its specific conditions and benefits.
- Public Hire insurance is generally more expensive due to the greater risk factors associated with taxis that can be hailed by anyone on the street, such as black cabs.
- Private Hire insurance, on the other hand, is designed for pre-booked taxis and minicabs and often carries lower premiums due to lesser risk factors.
- It’s crucial to understand these differences and choose the right type of insurance for your operation to ensure you’re fully covered and operating legally.
- Insurance brokers can provide valuable assistance in navigating the complexities of taxi insurance and helping you find the best coverage for your needs.
Public Hire Taxis
Public hire taxis, also known as hackney carriages or black cabs, are a familiar sight on the streets of many cities. These taxis are licensed to pick up passengers from the street without prior booking. Pedestrians can hail them and are commonly found at taxi ranks near transportation hubs and city centers.
Public hire vehicles include various options, such as black cabs, iconic in London, and other vehicles, like saloon cars, MPVs, and executive cars licensed for public hire.
Private Hire Taxis
On the other hand, private hire taxis operate under a different set of rules. These taxis cannot be hailed on the street and must be pre-booked through a licensed taxi office or an online app. Private hire drivers can only pick up passengers who have previously booked a journey. Unlike public hire taxis, personal hire vehicles cannot access taxi ranks.
The difference between public hire and private hire taxis is primarily about how they are authorized to collect passengers. Public hire taxis can collect passengers from the street or taxi ranks, while private hire taxis can only transport passengers who have already booked their journey in advance.
Uber Taxis and Private Hire Insurance
Ride-sharing services like Uber have gained significant popularity in recent years. Like other ride-sharing drivers, Uber drivers are licensed as private hire taxi drivers by local authorities. This means they must display special plates, just like any other taxi.
Regarding insurance, private hire and Uber taxi insurance are essentially the same. Both require appropriate insurance coverage for carrying passengers for hire or reward. However, it’s important to note that not all taxi insurance providers cover Uber drivers, and some specialist brokers may need to be consulted to arrange the necessary coverage.
Despite using their vehicles, Uber drivers fall under the category of private hire taxis due to the nature of their operations. Therefore, they are subject to the exact insurance requirements as other private-hire taxi drivers.
Passenger Pick-Up Rules
One important aspect is that Uber and public hire taxi drivers can only pick up passengers from the street or use taxi ranks with prior booking. All passenger journeys must be pre-booked beforehand, either through a taxi office or an online app.
The difference is that only public hire taxi drivers can transport passengers who hailed the cab from the street or are waiting at a taxi rank. Private hire taxis, including Uber drivers, can only accept passengers who have booked their journey in advance. For more insurance products, click here.
FAQs
What does private hire insurance cover?
Private hire insurance is legally required for individuals holding a private hire taxi or a PCO license. This type of insurance provides financial protection for your vehicle in the event of accidents on the road. It covers incidents involving passengers or members of the public while you’re working as a private hire taxi driver.
Which is the best private hire insurance?
Comprehensive insurance is generally recommended as the best option for taxi drivers. It provides coverage in all scenarios when there’s an accident. On the other hand, third-party-only insurance is the minimum level of coverage required by law.
Do taxi drivers have their insurance?
Yes, taxi drivers need their insurance coverage. Taxi insurance is a specialized policy that covers drivers who carry fee-paying passengers, also known as hire and reward. It is designed to protect the driver and the passengers during their journeys.
What is the meaning of PHV insurance?
PHV stands for Private Hire Vehicle insurance. It refers to the insurance coverage tailored explicitly for private hire vehicles, such as taxis and minicabs. This insurance protects the car and the driver from various risks and liabilities associated with operating as a private hire vehicle.
Is Uber a private hire service?
Yes, Uber is considered a private hire service—Uber partners with private hire licensed drivers to provide transportation services to customers. When becoming an Uber partner, drivers are required to comply with all legally required documents and licenses.
Essential Industry Insights for Further Reading
- Car Insurance for Taxi Drivers: An informative guide on the Money Advice Service website that explains the ins and outs of taxi driver insurance.
- Difference between Private and Public Hire: A comprehensive article from RAC providing a detailed comparison between private and public hire services.
- Taxi Insurance Guide: Quote Radar’s guide offers a detailed overview of various types of taxi insurance, including public and private hire.
- Taxi Insurance Explained: The AA gives a simple and straightforward explanation of taxi insurance, helping you understand its importance and how to get the right policy.
- Taxicab: An insightful article from Britannica detailing the history and evolution of the taxi industry, helping you appreciate the context in which public and private hire insurance exist.
