How to protect your taxi firm in the UK
There are many ways to protect your taxi firm in the UK, including securing your vehicle/s when not in use, investing in comprehensive taxi insurance and being selective of the taxi drivers who drive your vehicles – among others.
Let’s take a look at seven ways you can protect your taxi firm in SimplyQuote’s latest guide.
Tip #1: Secure your vehicles
Always ensure your taxi vehicles are safe and secure when not in use, such as storing them in locked garages, private driveways or secure parking lots. This applies to both public and private hire vehicles, and whether you have your own taxi business or manage a fleet.
Most modern cars have an alarm, central locking and immobilisers as standard. For an extra layer of protection, consider using steering wheel locks and dash cams to further deter criminal activity.
Having a safe place to store your vehicle/s also ensures they are protected against harsh weather conditions, which reduces the amount of wear and tear. This can significantly reduce vehicle maintenance running costs in the long run.
Furthermore, investing in telematics insurance cover, with black boxes that monitor how and where you drive, can help you locate your vehicle should it be stolen.
Looking for cheap taxi insurance? Get your quote today!
Get QuotesTip #2: Opt for dash cams
Dash cams are fantastic for your taxi vehicle as they provide unbiased evidence in the event of an accident and deter criminal activity.
These front and rear-facing cameras are used to record the road as you drive. They also record the inside and outside of your taxi, which can be helpful when dealing with difficult passengers who may damage your vehicle or shout abuse at the taxi driver.
Dash cam footage is invaluable when making insurance claims as it can help clear your name if you’ve been wrongly accused in a collision or received a driving ticket unfairly. Plus, opting for dash cams may bring your taxi insurance premiums, too!
Bonus read: Why Do Private Hire Drivers Need A Dash Cam In The UK?
Tip #3: Invest in taxi insurance
Investing in comprehensive taxi insurance is a surefire way to protect taxi drivers, passengers, and taxi vehicles against third-party claims or legal disputes. Getting the right type of cover ensures your cab business is protected while on the road.
Taxi firms have the choice between:
Why do you need this specialised vehicle insurance?
All UK motorists need car insurance to legally drive on UK roads – and taxi drivers are no exception. This applies to casual, part-time and full-time drivers in both the public and private hire sectors.
Additionally, you can personalise your taxi insurance policies with optional extras, such as:
- Breakdown cover
- Legal cover
- Personal injury
- Public liability insurance
- Employers liability cover
- And more!
Bonus reads:
What is private hire taxi insurance?
Private hire taxi insurance is designed for taxi businesses in the UK’s private hire sector. This means taxi drivers collect pre-booked passengers who have made prior bookings through ride-hailing apps or private channels like hotel concierge or schooling transportation.
To avoid confusion, PH insurance is often referred to as:
What is public hire taxi insurance?
Public hire taxi insurance works the same way as private hire insurance. The only difference is that it applies to drivers in the public hire sector.
This type of taxi service collects passengers from the side of the street or a taxi rank without prior bookings. London black cabs and hackney carriages are commonly used vehicles.
To avoid confusion, public hire taxi insurance is also called:
Tip #4: Choose taxi drivers wisely
Selecting the right drivers is crucial for maintaining a positive reputation and ensures the safety of everyone on the road.
Whether you’re a lone ranger cabbie or hire other taxi drivers, it’s important to be selective about who uses your vehicles. This not only ensures they deliver excellent customer service to passengers but ensures they are responsible drivers as well.
Here are a few tips to consider when looking for cab drivers for your business:
- Ensure drivers are of legal age to operate taxis. Most taxi insurance policies stipulate that drivers must be at least 25 years old. Confirm these details with your chosen insurance provider.
- Conduct thorough background checks of applicants, including criminal records, driving history, and references from previous employment. This helps you identify any red flags which could impact your insurance premiums.
- Ensure all potential drivers have the correct licensing and permits for UK taxi work. This includes valid driver’s licences and taxi operator permits issued by local authorities (Driver and Vehicle Licensing Agency, Transport for London, etc.).
- Implement regular drug and alcohol testing for all drivers working on shift to maintain a safe and professional driving environment.
- Provide ongoing training to keep drivers updated on current road rules, traffic laws and safety regulations. Advanced driver courses are another great avenue to look into.
- Train drivers on how to handle emergencies such as accidents, medical emergencies or security threats.
Bonus reads:
Tip #5: Secure your premises
Well-secured premises can significantly deter vandalism, burglary or theft.
Investing in CCTV surveillance, electric fencing and added security features like alarm systems and access controls will reduce potential risks at your commercial property. This creates a more secure environment for your taxi firm, protecting your assets and the safety of employees.
- CCTV cameras: The presence of CCTV surveillance reduces the likelihood of criminal activity as thieves are constantly being monitored. CCTV footage can be invaluable in identifying criminals who may break into your cabs or premises. Place cameras strategically to cover all areas of your premises, including parking lots, back alleys, entrances, and exits.
- Security systems: Alarm systems will alert you (and your security company) should break-ins or other security breaches occur.
- Access controls: Access systems such as keycards, biometric scanners, booms or remote-controlled gates restrict unauthorised access to your property. These security features keep your premises and taxi vehicles safe.
Note: Securing your business property could also reduce your commercial property insurance premiums as your insurance company can see you’ve made an effort to secure the location.
Tip #6: Remain compliant with taxi laws
Legal disputes are the last thing you want as a business owner, and ensuring compliance is a surefire way to sidestep any issues.
All licensed taxis must meet certain criteria before they take to the roads, and there are a few things business owners need to consider, too:
- Business legalities: Ensure your taxi business is registered with the relevant authorities (sole trader, partnership, etc.).
- Tax obligations: Keep up to date with tax submissions to avoid hefty fines. All self-employed drivers must submit a self-assessment tax form at the end of each year. Tax checks apply to all drivers in England and Wales. Corporation tax applies to large-scale taxi businesses with multiple vehicles and drivers on the road.
- Employee regulations: You’ll need valid employer liability insurance if you hire employees in your taxi business. This applies to temporary, casual, part-time, and full-time staff and is a legal requirement. Failure to do so will result in a daily £2,500 fine.
- Insurance legalities: As mentioned, all taxi cab drivers need the appropriate hire and reward insurance to transport paying customers, including an insurance certificate from your insurance provider.
- Public liability insurance: All taxi drivers need at least TPO cover to legally drive on the road. This type of public liability cover protects you, your drivers and your taxi firm against any third-party claims should the general public or their property be injured/damaged by one of your vehicles.
- Taxi licences: Ensure all taxi licences and permits are valid to avoid penalties and the risk of invalidating your insurance cover. You can obtain the correct licences/permits for your public or private hire vehicle through the local council such as the Driver and Vehicle Agency or Transport for London.
- Dash cam laws: Familiarise yourself with UK dash cam regulations such as the GDPR (General Data Protection Regulation) and ICO CCTV code of practice to remain compliant. Also, you must have signage in your vehicle/s notifying customers that CCTV cameras are in use. Failure to do so may result in privacy breaches that can result in fines of up to £20 million!
- Wheelchair users: A taxi driver cannot deny transporting passengers based on gender, race, religion, disability, or sexual orientation, as per the Equality Act 2010. All licensed taxis, such as black cabs, who are wheelchair accessible must comply with this law.
Bonus reads:
Tip #7: Be a responsible driver
Responsible driving is crucial for the safety of your passengers, other road users, and your vehicles.
Here are our suggestions:
- Teach drivers to anticipate road hazards such as other vehicles, pedestrians, and road conditions to ensure the safety of everyone on board.
- Encourage drivers to maintain a safe following distance to allow for ample braking time and manoeuvring.
- Ensure taxi drivers are well rested before they start work as concentration and reaction times are impaired when fatigued.
- Comply with road rules at all times such as sticking to the speed limit, avoiding bus lanes, and wearing seat belts when required.
- Remind drivers to be aware of their surroundings including blind spots, merging lanes, and road works.
- Avoid distractions while driving, including using mobile devices or eating.
- Schedule regular vehicle maintenance to ensure your taxi/s remain in tip-top condition. Address any minor issues before they become major problems.
- Ensure tyres are properly inflated and have the correct tread depth.
Bonus reads:
Final thoughts
So there you have it; a quick yet insightful rundown on how to protect your taxi firm in the UK. By securing your vehicles, opting for dash cams, investing in taxi insurance, and being a responsible taxi driver, you can safeguard your assets for years to come.
Remember to compare taxi insurance quotes from multiple UK insurers with SimplyQuote’s free online comparison tool. We’re committed to finding you the best deal that aligns with your business needs and budget.
Frequently Asked Questions
The Department for Transport regulates licensed taxis and private hire vehicles in the UK.
Yes, taxi insurance with at least third-party only cover is a legal requirement in the UK. This ensures third-party persons are protected should you/your taxi drivers injure someone whilst on duty.
There are several ways taxi drivers can protect themselves when on shift, such as:
- Installing a silent alarm
- Installing bullet-resistant barriers
- Installing CCTV/dash cams
- Having emergency services on speed dial
- Using personal and vehicle tracking devices
- Avoiding carrying wads of cash or valuable possessions