Insurance for a taxi
Insurance for a taxi, a necessary evil and generally a hassle. After all, you are paying hundreds, even thousands of dollars for something you can’t hold, can’t see, and hope never to use. All that being said, there are two main reasons why you should buy insurance: legal and financial.
While you may debate the wisdom of insurance, the government has made your choice a bit easier by requiring that all drivers, which includes taxi drivers, to have insurance under the Road Traffic Act of 1988, as amended in 1991. The Act is extensive, but requires that a driver carry “third party liability” insurance, or insurance that will protect other drivers from damage that you cause to their car, or injuries that you cause them in the course of a vehicular accident. For additional reading on the Road Traffic Act, you can read it online on the Official UK Legislation website at www.legislation.gov.uk/ukpga/1988/52/contents. Failure to carry insurance as required under the Road Traffic Act is considered an offence under the law and can result in the loss of your driver’s license.
The other important reason for insurance for a taxi is the financial protection it affords you and your business. Imagine you are a sole proprietor with one taxi and you decide you cannot afford nor do not need insurance and an accident ensues for which you are at fault. Your taxi is out of commission for several weeks being repaired, causing you a significant loss of income unless you rent, at your expense, a replacement taxi while yours is being repaired. You have to pay for all of the repairs out of your own pocket as well. And for the icing on the cake, you are personally liable for the damages done to the other vehicle (or vehicles) as well as for injuries to the other person (or persons), not only in the other vehicle, but any injuries to your passenger as well. Even a modest accident could mean financial ruin for you and for your business.
Insurance for a taxi – it’s required by law and frankly, required by common sense as well.
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