London Black Cab Insurance

Black Cab insurance is specifically designed for drivers who have learned and passed the Knowledge of London.

Unlike the majority of motorists, your vehicle is your livelihood so it’s essential that you and your vehicle are fully insured and protected against the risks you face as a professional driver.

Most often, Cab driving is at unsociable hours mainly in busy inner-city areas where you are statistically more likely to have an accident.

Cab drivers also cover more miles than the average motorist and because of this, they are at a higher risk of having an accident whilst on the job.

It is important that you find the right insurance policy to meet your needs; and these can vary greatly.

Policies can differ in many ways including:

• Age of drivers covered, with a minimum driver age commonly of 25
• Capped amount of miles driven in a year
• Maximum amount of hours driving each day
• Regional Policies – excluding certain cities from your cover

Insurance can also vary according to who drives the car:

• A Named Driver policy 
  Allows a number of specifically named people to drive the vehicle which may be beneficial if you have a few drivers or your cab is also your family car.
• Any Driver policy
  Allows anyone in your employment to drive your car which is the most common choice for taxi companies who have a large number of drivers.
• Sole Driver Polices
  The most common for London Black Cab Insurance where only the owner can drive the car.

A Black Cab cover is essential for any Taxi Driver, most commonly driving a traditional London, or Hackney Carriage Cab. If you work on the ranks and accept customers who have not pre-booked their journey, you need specialist cover.

Having a Motor Insurance Policy is a legal requirement by UK law, so all drivers needs one.

However, if you drive passengers for a profit, then you will need a Professional Drivers Insurance Policy, or more specifically, a Black Cab Insurance Policy that covers you for carrying passengers for the purposes of hire and reward.

Black Cab insurance from Plan Insurance Brokers can be tailored to reflect your particular requirements and circumstances.

We understand how important your cab is to you, and if it’s off the road for any reason, we can arrange cover that will get you back on the road as soon as possible, no matter who was at fault for the accident.

If you drive a London Black Cab for a living, it’s important to make sure that you have the legal requirements covered off.

Having a regular car insurance policy, like you’d have for your family car is illegal when it comes to driving a London taxi.

There are two elements of Black Cab insurance that are mandatory:

• Public Liability
  Despite your cab not being a typical building or office, it is still your place of work and you are liable for anyone in your cab. Public liability (PL) Insurance will provide cover should a customer sustain an injury or damage their property in your cab where you are at fault.
• Employers’ Liability
  Employers Liability (EL) Insurance is a legal requirement by UK law if you employ any staff in the UK even if they only work on a part-time voluntary basis. This provides cover should an employee have an accident as a direct result of working for you. Over a quarter of all Road Accidents, last year involved drivers when at work so this cover is essential if you have any employees.

There are additional types of Insurance that you may need as a Cab driver depending on your business. The main types of cover include:

• Breakdown and Roadside Recovery
  To get your vehicle started again if you break down at the roadside.
  Cover can also arrange onward transportation for any passengers you have in the vehicle.
• Home Start Recovery
  Assistance at your home if your taxi won’t start and you are unable to start working.

Plan Insurance Brokers provide tailored insurance solutions, highly competitive premiums and expert advice to best protect the interests of the UK’s professional road users. Our goal is to provide quality cover that keeps you on the road and earning. Outside of London, our providers can cover black cab taxis. However, if you are licensed by TfL, we regret to inform you that we cannot provide cover.

A ‘cheap’ quote might turn out to be costly if it leaves you exposed to significant costs that could have been avoided for the sake of a small premium hike! At Plan, our priority is to keep your business motoring. As professional road users, your vehicles are essential to the operation of your business. Without them, you simply cannot earn. We seek to minimise the circumstances that might render you vehicle-less. For these reasons, we can include a range of additional features that add value and keep you on the road and earning.

• Free protected no claims bonus (NCB) for uninsured driver claims.
• Optional courtesy vehicle for fault claims.
• Unlimited windscreen and glass cover.
• 24-hour black cab breakdown including roadside assistance and home-start 365 days a year.
• Cover can also arrange onward transportation for any passengers you have in the vehicle.
• Complete Accident management service with expert advice to make claiming as hassle-free as possible
• Vehicle Contents Cover
• Public Liability Cover

Competitively priced Motor Legal Expenses Cover is also available to help you reclaim any out of pocket expenses.

When considering purchasing your Black Cab Insurance, you should bear in mind the following questions:

• Amount of miles driven in a year
  Many black cab insurance policies place a limit on annual mileage. That may be fine – but be aware that if you go over that specified limit, you may not be insured.
• Maximum amount of hours driving each day
  This covers both the individual driver and the vehicle itself. If the cab is being used round the clock by different drivers working shifts, be careful that your policy doesn’t stipulate a daily limit.
• Regional Policies
  Some policies exclude certain cities from cover (often, in Northern Ireland). Again, it may not be an issue, particularly if you live and work in London, but if it is, you’ll need a policy tailored to reflect your particular needs.

Look into the various elements of covers and see if they will be needed. Typically, the levels of cover for breakdown assistance with home start, courtesy vehicle, public and employer liability will vary greatly from one insurer to another.

At Plan, we can help you chose the right elements for you, to make sure that you will only pay for the cover you need.

We are able to cover electric vehicles, and the LEVC Electric TX in particular, without a significant change to the premium rating compared to, for example a TX4. Outside of London, our providers can cover electric taxis. However, if you are licensed by TfL, we regret to inform you that we cannot provide cover.

If you currently drive an older model TX, there will simply be a small increase due to the higher vehicle value. If you already drive a newer model TX or Vito, you shouldn’t notice too much of a difference (approximately 5-10%).

Some insurers are wary of offering cover for electric vehicles. This is often due to the greater potential for large claims resulting from unforeseen issues with the new technology. There is also a risk of higher repair bills due to parts being more expensive, or delays in the supply of them.

However, we’re pleased to report that our main insurer partner is not put off by these considerations, and wants to support the taxi drivers who choose to transition to electric.

We can offer our taxi insurance customers a guaranteed vehicle value on vehicles converted to LPG. This means that, if the cab is a write-off, we will pay for its value including the cost of the conversion, so you won’t be out of pocket. Outside of London, our providers can cover LPG taxis. However, if you are licensed by TfL, we regret to inform you that we cannot provide cover.

When you contact us for a quote, simply tell us how much the conversion cost is (this should be in the region of £11,000 to £13,000 (inc. VAT), depending on your vehicle model), in addition to your vehicle’s value.

The depreciating value of the conversion will be accounted for at renewal each year over a 5-year period. Other than that, all you’ll need to do if you take out cover, is supply us with an official certificate of fitment.

For more information about Gas conversions and the benefits of LPG, visit the GasCab website or read our blog and find out how you can claim your £100 discount: LPG conversion by GasCab – Give your TX a new lease of life

If you hesitate between Electric and LPG, we have previously published a cost comparison between the two: Taxi dilemma

If you run a large cab firm and have a central hub for your drivers or an office where the main switchboard is, that will all need to be insured too. It’s worth looking at what else can be included in the policy, so you’ve got everything covered in a single policy, which may prove more cost-effective and certainly means less admin to worry about:

• Buildings Insurance – this will ensure any damage done to the physical property. It can also provide you with additional premises should your building be uninhabitable due to an insured accident.
• Contents Insurance – to cover the cost of theft or damage to your buildings’ contents such as furnishing, computers or even money left in a till.
• Cyber or Data Protection Insurance – Any record you keep of clients details online can be subject to a cyber breach and be stolen. You, as a business owner, can be held responsible for this. Cyber Insurance can pay for any compensation you may have to pay as well as helping to reinstall security software that may have been targeted.