Advice for minibus taxi insurance

Many taxi operators use a minibus or MPV as a taxi because of the adaptability of the vehicle to carry more passengers and extra luggage.

There are two types of taxi use: public or private hire. Public hire allows the taxi to be hailed by customers, who can then be picked up on the roadside. Private hire operators require the customer's journey to be arranged before they are picked up.

Insurance cover is compulsory by law. The minimum requirement is to cover a driver against injuries they might cause to other people and damage to their property. A taxi operator will require additional insurance for the "carriage of persons for hire or reward", irrespective of whether they are private or public hire.

The three types of insurance available are:

Third Party 
This is the minimum cover required by law. It covers injury to third parties and their property, and some legal costs.

Third Party Fire and Theft 
The additional cover with this policy is for damage or loss of the taxi operator's minibus by fire and theft.

Comprehensive 
The highest level of minibus insurance, covering damage to the vehicle after an accident irrespective of whether it was the policy holder's fault or not. Other cover may include new vehicle replacement, windscreen/window breakages, replacement locks, medical expenses and loss of personal effects.

Public liability can be included with the taxi minibus insurance policy. Public liability is required to satisfy local government requirements. A minibus taxi operator will need an indemnity limit of at least £5 million.

Another useful addition to a taxi minibus insurance policy is uninsured loss recovery. This will cover the cost of an appointed lawyer, legal costs up to £100,000 and vehicle hire costs if part of the claim is agreed.

Other benefits that a taxi operator should consider before choosing minibus insurance include:

a) A freephone helpline available 24 hours all year round. 
b) Accident recovery facilities such as the AA. 
c) A protected no claims bonus. 
d) Option to pay by instalments 
e) Prompt document turnaround

Taxi minibus insurance usually provides cover only for the licenced operator. Be aware that if the minibus is also used as a family vehicle, a spouse or partner may not be insured to drive unless they possess a valid taxi driver's badge.

It is likely the insurance provider will want to know if two way communications are used in the provision of the taxi service and if regular contracts feature in the taxi operators work schedule. These typically include regular school transport or hospital visits.

Every taxi operator provides a different level of service. A specialist minibus insurance provider will be aware of the factors required in providing a taxi service and can give advice about the best level of cover required. The insurance advisor will tailor a policy to suit the operator's particular requirements at the right price.

Another benefit of using a specialist insurance provider is the availability of an advisor 24 hours a day, to help if you have had an accident or breakdown. This minimises the time the minibus is off the road and reduces the potential financial loss to a taxi business.