Minicab fleet insurance: a complete guide for private hire operators

Minicab fleet insurance is essential for private hire operators with multiple vehicles, offering protection against accidents, theft, and liability claims. It also enables businesses to insure all the vehicles in their fleet under the same policy, with one renewal date.

This guide will cover key aspects of minicab fleet insurance, including cover options, legal requirements, and tips to reduce premiums, helping you choose the best policy for your business needs. Whether you are an established operator or a new venture, this guide will help you navigate the ins and outs of fleet insurance.

Are you looking for insurance cover for your minicab fleet? Get in touch with us! A member of the Howden team would love to help you find the perfect fleet insurance policy!

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What is minicab fleet insurance?

Minicab fleet insurance is a type of commercial vehicle insurance: specifically, it is a specialised type of private hire insurance designed for insuring multiple minicabs within taxi businesses under one policy.

With fleet insurance, taxi businesses can simplify administration by replacing the need for individual policies for each vehicle, making it easier to manage coverage for their entire taxi fleet. This is an ideal solution for private hire operators that require multiple vehicle insurance.

What does minicab fleet insurance cover?

Just like other vehicle insurance products, there are three cover levels to choose from, ranging from third-party to comprehensive insurance cover. Here's an overview of the available coverage levels for your minicab fleet:

• Third Party Only: This is the minimum level of taxi insurance policy mandated by UK law. It covers damage caused to other people’s property and injuries to third parties in the event of an accident where your driver is at fault. However, it does not provide any cover for damage to your own minicabs.

• Third Party, Fire and Theft: This level of insurance cover includes everything offered by third-party only insurance, plus protection against loss or damage to your minicabs caused by fire or theft.

• Comprehensive Cover: This is the most extensive level of protection available. It includes all the features of third-party, fire and theft cover, as well as covering damage to your own minicabs, even if the accident was your driver’s fault.

Comprehensive policies often include additional benefits. If they aren't already included in your taxi fleet policy, you can usually purchase them as extras. These may include:

Breakdown cover

Breakdown cover offers assistance in case one of your vehicles breaks down while on the road.

Windscreen cover

Covers the cost of fixing or replacing chipped or cracked windscreens, or other minicab windows.

Legal expenses cover

If you or one of your drivers are involved in a non-fault accident and need to pursue legal action to reclaim uninsured losses, this helps cover legal fees and associated expenses.

Medical expenses

Covers any medical costs related to injuries to drivers and all passengers.

Personal effects cover

Safeguards the personal belongings you transport in your vehicles from loss or damage.

Courtesy vehicle cover

If your minicab is damaged in a crash and requires repairs, your insurer can supply a temporary replacement vehicle while it's in the garage.

Public liability cover

Public liability insurance protects you against legal claims for injury or property damage caused to third parties during business operations.

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Do I need public liability insurance and employers liability insurance?

Businesses in the UK that employ one or more people are legally required to have employers' liability insurance to protect their staff. This provides cover for damages and legal defence costs if an employee becomes injured at work

While public liability insurance isn't legally required for taxi fleet operators, it's worth adding to your policy if it isn't already included - private hire fleet businesses deal with members of the public daily, so it's a good idea to protect your business against potential legal claims for accidents, injuries, and more.

What's the difference between Private Hire and Public Hire insurance?

It's important to understand the distinction between private hire taxi insurance and public hire insurance:

Public hire taxi insurance

Public hire insurance covers licenced Hackney Carriages (traditional black cabs) that can be hailed on the street or picked up at taxi ranks. These public hire vehicles do not require pre-booking and are licensed to pick up passengers without prior arrangements.

Private hire taxi insurance

Private hire insurance, also known as private hire taxi insurance, private hire fleet insurance or PCO insurance, covers vehicles that must be pre-booked, such as minicabs or Uber vehicles. Unlike black cabs, these taxis cannot be hailed on the street and must be arranged through an app or a booking service.

In London, these vehicles are prohibited from displaying advertising on their doors and are regulated under the Private Hire Vehicles (London) Act 1998. Elsewhere in the UK, private hire vehicles operate under similar rules, but they are permitted to carry advertisements.

Read here to find out more: What's the difference between public and private hire insurance?

How many vehicles do you need for minicab fleet insurance?

It depends on the insurer. The lowest providers typically require for minicab fleet insurance is usually three or more vehicles. However, it is also common for insurers to require a minimum of five or more vehicles.

How much does minicab fleet insurance usually cost?

There is no flat-rate for how much you pay for fleet insurance. However, minicab fleet insurance can help you save money compared to insuring each vehicle individually. Your insurance premium will be calculated based on a number of factors. These could include:

• The number of minicabs in your fleet

• The types of taxi vehicles in your fleet (e.g., people carriers) and their size

• Driver background, age and experience - if you employ inexperienced taxi drivers, you could risk increasing your premium

• The nature of your business

• Where your business operates (e.g., inner city areas, rural areas, or specific regions)

• Trading history

How can I find the cheapest minicab fleet insurance?

Before you decide on a fleet insurance policy, make sure you’ve done your research. It’s always worth shopping around to compare fleet policies and find cover that suits you.

Some insurers may offer discounts for fleets with a strong record of driving safely, as this demonstrates lower risk and responsible behaviour on the road. Opting for a higher voluntary excess can also reduce your insurance premium, but ensure it's affordable in case of a claim. Finding affordable taxi fleet insurance often involves balancing cost with comprehensive coverage.

Also read:

• What is Fleet Insurance?
• How many vans do you need for fleet van insurance? 
• Taxi Breakdown Cover: all you need to know | Howden Insurance
• How much is motor trade insurance?