Taxi insurance in Northern Ireland is sometimes regarded as being expensive – and that may lead to a dangerous temptation.
Private vehicle insurance
If you’re considering using your existing vehicle as a taxi, that may be perfectly legal providing you comply with any current registration requirements and are appropriately insured.
The reality here is that standard private vehicle insurance just won’t do and you shouldn’t be tempted to try and get away with using it.
The risks you’re exposed to as a taxi are simply not comparable with those of a private motorist and therefore you need appropriate insurance protection.
Why are your risks higher?
Individual providers of taxi insurance in Northern Ireland may see things differently but in principle your risks are higher because:
- you’re typically driving for longer therefore running up a higher annual mileage – and with higher mileage comes increased accident risk;
- you’re carrying fare-paying passengers who, if they’re injured or their property damaged, typically won’t hesitate to sue you for compensation;
- if you’re working in built-up areas, you may be using your vehicle in town centres and at peak times – increasing the possibility of bumps and shunts.
Additional cover
Your taxi needs to be considered as a vehicle in its own right – so the conventional protection of third party liability and perhaps fully comprehensive cover, need to be thought about.
Then there are the issues associated with your vehicle as a business mechanism, so if it is off the road temporarily as a result of an accident, do you need some form of business continuity cover?
It’s also worth remembering that if you employ staff, it may be legally obligatory for you to have employer’s liability protection. Note that even someone helping you out voluntarily in your office as a favour, may be considered an employee under law if they suffer an accident and sue you for compensation.
Balancing cost versus cover
Inevitably, insurance costs money.
However, the costs of being under-insured when you’re running a taxi business may prove to be ruinous.
Therefore, thinking carefully about taxi insurance in Northern Ireland might be a sensible thing to do.
