Importance of Private Hire Insurance

Introduction

Driving a car is risky. More than a million car accidents take place every year and a majority of these accidents involves taxis. Accidents come unannounced and when they do, they sap out a major portion of your financial resources since you have to get the damaged vehicle repaired, take care of the media expenses incurred to the driver, passenger and any third party who might be involved in the accident. Further, if passengers or third party slaps a lawsuit on your taxi company, then the loss incurred can sometimes lead to the closure of the business. Therefore, there is a need to have a safety net in times of crisis, which can be used to bail the business out financially. Private hire insurance is one such safety net.

Saves the company in times of crisis

Private hire insurance can help bail out a company in time of trouble. Trouble for a private taxi can manifest itself in several ways. It can come in the form of road accidents, damage to the vehicle due to violence in the region or vandalism, fire or explosion damage or theft. In any of these cases, the vehicle may be rendered damaged very severely. Private hire insurance helps in all these cases. Depending on the need of the company and the amount of risk that the vehicles are exposed to choose, you can choose between different kinds of insurance covers.

Help to the third party and passengers

The importance of private hire insurance can be understood only in times of crisis. A responsible private hire company should take responsibility for the safety of passengers as long as they are in the taxi. The taxi company has to foot any expenditure incurred due to damage to their property or their health when an accident occurs. Considering the rocketing cost of medical care in America, the expense incurred to get passengers treated can be substantial depending on the severity of the accident. If a third party is also involved in the accident, then the cost skyrocket and the taxi owner will be left high and dry. Private hire insurance, in such situations, can step in and help a private taxi owner out of trouble.

Get a new vehicle is the existing vehicle is damaged beyond repair

The damage to a vehicle depends on the intensity of collision. In case of high intensity collisions, vehicles may be left unusable. Purchasing a new vehicle can be a financial burden. Further, a private taxi service needs to have vehicles that appear good and in well-maintained condition, which means that the cost of a new private taxi, even if you buy a used car, will be high. Private hire insurance can help you get a new vehicle and save your business.

Cover for loss-of-income

If you are the owner-driver of your private taxi service and due to health-related reasons, you are unable to drive, then private hire insurance provides, loss of income cover. The importance of private taxi insurance cannot be stressed sufficiently. Therefore, make sure that you get a policy that provides you a comprehensive cover.