Private hire insurance can be expensive depending on what type of insurance you require.
Private Hire Insurance is a necessity and the cost of this insurance has increased in recent years. This is mainly due to:
A higher number of claims by passengers and drivers
Higher level of payouts for the insurer
Increased cost for regulation and compliance
Private hire insurance is more expensive than regular car insurance, but there are ways of reducing the costs of private hire insurance.
This should be done by reading the policy documents and contacting an agent, broker, or insurer to get details on what coverages are included in your policy. You can also ask about other options available for your specific needs.
To reduce costs of insurance is to compare the different types of private hire insurance policies and find out which one is best for you. There are three types:
Third-party only, which covers any damage to your own vehicle as well as passengers in your vehicle, but with a high excess.
Fully comprehensive cover, which covers everything from minor bumpers to major damages and with a lower excess.
Third-Party Fire and Theft cover, with a lower price tag but without personal accident cover or fire and theft protection.
Steps to be taken to reduce the costs of private hire insurance
The first step is finding out what are your insurance needs. This should be done by reading the policy documents and contacting an agent, broker, or insurer to get details on what coverages are included in your policy. You can also ask about other options available for your specific needs.
The second step is comparing policies from different providers to find out which one suits you best. This means that you’ll have to compare premiums, benefits, exclusions, maximum limits, and any restrictions on deductibles or co-payments.
The third step is getting quotes from different providers by looking at their website or calling them up to get a quote over the phone. These quotes are used for comparison
The next way to reduce costs with private hire insurance is by shopping around - just like you would for any other product or service!
Keep your driving record clean
There are notable discounts for drivers that have not been involved in claims processes. If you have not been claiming on the policy then the guess is that you represent low risks. Likewise, a high claims ratio indicates that you are a high-risk factor for the provider. In order to ensure parity, the rates for payment will be adjusted according to the risk factors which have been attached to the business or the driver that is applying for coverage.
Restrict the number of drivers on the policy
Do not use your business as if it is a public hiring house. There have to be some restrictions on the types of people that are allowed to drive the vehicles. The private hire insurance provider will take this action into consideration when they are deciding on the correct premium to charge. The guess is that high usage will normally increase the risk that your vehicle will be involved in an incident. Therefore the low usage vehicles will be given discounts in order to reflect the level of risk that they are assessed to have through the product provider.
Go with reputable providers
The idea of going with reputable providers is to ensure that you get a good service. A provider with a good record in the industry is hardly going to fall at the last hurdle. They will do everything in their means to ensure that you get a great service. Moreover, they will be careful to research the product so that you can follow through with the main requirements that are set by the local authority which is responsible for the licensing function. It is sometimes better to go with the large providers because they have a reputation to protect.
Do not renew the policy without a review
At the end of every year, you will be given the opportunity to renew your private hire insurance policy. Before accepting the renewed quotation you need to ensure that it is fair by industry standards. That means that you need to be very inquisitive about the discounts that they are offering. Do not just hurry to accept the package without considering what the business competitors are getting. The current provider might even be persuaded to give you further discounts on the basis that you are getting the best policy at the right time for the New Year.