As the climate changes, people create more ways to save the planet and embrace sustainability. While experts develop greener options, they gradually replace the traditional ways, including the taxi system.
Today, more taxi drivers in the UK are switching to electric or hybrid cars. These are eco-friendly options since instead of using diesel or petrol, these cars are rechargeable. More electric and hybrid cars are produced each year, and the quality also improves. Additionally, passengers appreciate riding in a sustainable car.
Aside from the quality, car companies also offer affordable models that can be used for taxi businesses. However, when it comes to insurance, taxi drivers aren’t used to the policies that insurance companies offer.
In this article, we’ll discuss more about the type of taxi insurance you can get for your electric or hybrid car.
The Rise of Electric and Hybrid Taxis
Electric and hybrid vehicles are becoming more popular nowadays than they reached the taxi industry. Owning an electric or hybrid vehicle costs less, quieter ride experience, and eco-friendly than traditional cars, which is ideal for taxi businesses.
However, before buying one, you should know the different types first:
- Electric car- doesn’t run using fuel, but purely electric. It’s considered the most environmentally friendly car since it doesn’t emit smoke. Although some might think that it’s fragile, it can still be used in a taxi business. On average, you can buy an electric taxi for around £40,000 to £50,000.
- Plug-in hybrid (PHEVs)- can work using both batteries and fuel. Its main feature, as the name suggests, is that it can be plugged into the mains for longer power. It’s perfect to use as a taxi, especially on urban roads.
- Standard hybrid– also works in fuel and batteries. However, its difference with the plug-in hybrid is that its motor can’t be charged at the mains. Other than that, both plug-in and hybrid cars are good for taxis.
The Importance of Specialised Insurance
Although various factors differentiate electric and hybrid cars from traditional ones, getting taxi insurance is one of their similarities. However, although the premiums are similar, there are other coverages that you can get for electric and hybrid cars that you can’t get for normal cars.
For electric and hybrid taxi insurance, you can still choose from third party, third party, fire, & theft, and comprehensive. However, the variations come with the additional coverage.
Insurance Coverage Specifically for Electric and Hybrid Taxis
1. Battery Coverage
As mentioned, electric and hybrid taxis have batteries. The complex battery systems can sometimes encounter problems beyond your knowledge. Fortunately, you can add the battery coverage to your taxi insurance policy.
The battery coverage allows you to file for battery replacement claims. However, usually, this add-on can only be availed if you have comprehensive or fire & theft taxi insurance, since it works when you encounter an accident or get robbed. In terms of the wear and tear of the battery, insurance policies don’t usually cover them, but you can check your warranty if they allow replacements.
2. Charging Equipment Coverage
One of the most useful additional coverage for your taxi insurance is the charging equipment coverage. As a taxi business, investing in charging ports is a cheaper option, especially if you’re planning to add more taxis in the future. However, the number of places that have charging ports for electric and hybrid cars is improving, so you still have another option, but it comes with limitations.
Commonly, this add-on covers the claims for the charging port, cables, adaptors, and any other related to the charging station. Similar to the battery coverage, this can be added to the third-party, fire & theft, and comprehensive taxi insurance.
3. Repair and Maintenance
The repair and maintenance of electric and hybrid cars are different from the regular taxis. Most of the time, they’re more expensive which is why availing of taxi insurance is a must.
4. Replacement Vehicle
Taxi drivers rely heavily on their vehicles when it comes to the financial aspect. It’s one of the reasons why it’s recommended to get taxi insurance with replacement vehicle coverage. When you encounter an accident or significant damage, it might take a while before you can go back to your usual trips. When that happens, your insurance should cover the replacement of your taxi.
Costs of Taxi Insurance
The cost of electric and hybrid taxi insurance also varies depending on factors, like the driver’s experience, age, and car model. However, since generally, the personal auto insurance for these types of cars is more expensive, the same goes for taxi insurance.
Navigating the Insurance Market
If you’re planning to get taxi insurance, it’s best if you can shop around the UK and look for the insurance broker and insurance provider that fits your needs and preferences. It may be a daunting task, given that the insurance market for electric and hybrid cars is fairly new. However, it can also lead you to the best repair shops that you haven’t discovered yet.
As the taxi industry continues to evolve, the demand for taxi insurance is also increasing. As a taxi owner, it’s your responsibility to look for the best electric and hybrid taxi insurance provider that can assist you and your passengers in case of emergencies.