Hackney Insurance
Like all vehicles and drivers, hackney insurance is a requirement for hackney cab drivers. A hackney cab, or hackney carriage as it is sometimes called, it that familiar black cab you see in London. The hackney cab is more regulated than other taxis, and in places like London, the drivers often have to pass an exam covering their familiarity and knowledge of London roadways. It falls under the general category of a private hire vehicle and its main function, as you might have guessed, is to carry passengers. The critical difference is that a hackney cab requires hackney insurance due to the unique situations and greater risk factors involved in driving a hackney cab in London.
The primary additional risk factor is London itself. London itself has a population of over seven million people, with the greater London area having as many as twelve to fourteen million people. This translates to millions of cars, over 8,000 buses, and many annoying bicyclists using the roadways and streets. The probably of an auto accident with a taxi is greater here than in most other cities in Europe. There is also an increased risk of theft or theft related damage to taxis in London, again owing to the large population.
While it is generally thought that hackney insurance itself is more expensive than other forms of taxi insurance, in other words, simply driving a hackney cab is a different and more expensive class of insurance, it is a bit more complicated than that. In reality, it is the higher risk factors that are the primary reason that this type of insurance more expensive than other forms of taxi insurance. The likelihood of being in accident, of the hackney cab being stolen or damaged by a passenger are much higher because of the location the hackney cab operates in, and thus the higher rates charged for hackney insurance.
Another factor in making the hackney carriage insurance more expensive is that there are fewer insurance brokers that offer hackney insurance. While there is still an adequate and varied amount of brokers offering hackney insurance, the fewer number of insurance brokers offering it means less competition. Less competition generally means higher prices for any service or product.
While having hackney insurance is both a hassle and expensive, it is a requirement under the law and to protect you and your business.
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