Private Hire Taxi Gap Insurance: All You Need to Know

Gap insurance is a type of insurance that covers the difference between what you owe on your vehicle and the amount that the insurance company will pay out in the event of a total loss. It is most often used by those who lease a vehicle, but it can also be useful if you are buying a car with a loan or a high-interest auto financing agreement. In the case of private hire taxi gap insurance, it covers the difference between the market value of your taxi and the amount you owe on it.

What Is Private Hire Taxi Gap Insurance?

Private hire taxi gap insurance is a type of insurance designed to protect taxi drivers against the financial risk of a total loss of their vehicle due to an accident or theft. It covers the difference between the market value of the taxi and the amount a taxi driver owes on it. This type of insurance is also known as “gap cover” or “shortfall insurance”. It is important to note that gap insurance is not the same as a standard vehicle insurance policy and will not provide cover for the full value of the taxi.

What Does Private Hire Taxi Gap Insurance Cover?

Private hire taxi gap insurance will provide cover for the difference between the market value of the taxi and the amount you owe on it. This means that if your taxi is written off, you will not have to pay the difference out of your own pocket. It is important to note that this type of insurance does not provide cover for the full value of the taxi and will only cover the amount that you owe on it.

Who Is Eligible For Private Hire Taxi Gap Insurance?

Private hire taxi gap insurance is available to those who own and operate a private hire taxi. It is not available to those who work for a taxi company or use a taxi service. This type of insurance is also only available to those who have purchased their taxi with a loan or a high-interest auto financing agreement. Those who have paid cash for their taxi will not be eligible for private hire taxi gap insurance.

Why Do You Need Private Hire Taxi Gap Insurance?

Private hire taxi gap insurance is important for those who own and operate a private hire taxi as it provides financial protection against the risk of a total loss of the vehicle. In the event of a total loss, the insurance company will pay out the difference between the market value of the taxi and the amount you owe on it. This means that you will not have to pay the difference out of your own pocket. It is important to note that this type of insurance does not provide cover for the full value of the taxi and will only cover the amount that you owe on it.

How Much Does Private Hire Taxi Gap Insurance Cost?

The cost of private hire taxi gap insurance will vary depending on the insurer and the type of cover you choose. Generally, the cost of the insurance will be a percentage of the total amount you owe on the vehicle. However, the cost can vary significantly depending on the insurer, so it is important to shop around and compare quotes to find the most cost-effective option.

Conclusion

Private hire taxi gap insurance is a type of insurance designed to protect taxi drivers against the financial risk of a total loss of their vehicle due to an accident or theft. It covers the difference between the market value of the taxi and the amount a taxi driver owes on it. This type of insurance is important for those who own and operate a private hire taxi as it provides financial protection against the risk of a total loss of the vehicle. The cost of private hire taxi gap insurance will vary depending on the insurer, so it is important to shop around and compare quotes to find the most cost-effective option.