Before understanding how car insurance in the UK is structured, it is helpful to refresh ourselves on what the term ‘insurance’ really means. Essentially insurance is a contract between two parties, drawn up in the form of a policy, whereby one party receives reimbursement from the other in the event of a specified incident. By purchasing car insurance you are safeguarding yourself if your car is ever damaged in an accident, is damaged by a natural event (such as with flooding), or if it gets broken into or stolen. It also protects you if you damage someone else’s property or vehicle. There are three major forms of car insurance policies available in the UK- Third party, third party fire and theft, and fully comprehensive. The minimum level of cover that is required by law is third party.
If you own a car in the UK, you are obligated to register it and purchase insurance. If you are caught driving without a license, you could be fined and be issued with penalty points on your license. You may even be prohibited from driving and have your vehicle seized if found to be driving without a license. The cost of car insurancein the UK is based on many factors. These commonly include your driving record, occupation, age, and the type of car you drive. An insurer will also need to know additional information about the security of the car, your annual mileage, and where you leave it parked, etc. The specific terms of each car insurance policy will vary from insurer to insurer, and from policy to policy.
Taxi insurance is a specific form of vehicle insurance, and anyone that drives a vehicle that’s available for public hire, be that a car, minibus or a cab require it. In the event of an incident, having the correct type and level of insurance is extremely important, covering the vehicle, driver and any passengers. Taxi insurance is more expensive than standard car insurance due to the fact that the risk is increased by having many different people in the vehicle, and the amount of time that it spends on the road, thereby increasing the chances of being involved in an accident. As ever, the bigger the risk, the more expensive the premium. Try Compare has a network of trusted insurance brokers to help you find cheap taxi insurance for your business. We offer many policy options to enable you to find the most appropriate cover for your taxi, at the very best price. Not only do we help you find cheap taxi insurance, but we’ll also be saving you time and money, getting you the best deal possible!