HOW GOOD IS YOUR INSURANCE?


It’s easy for an operator to assume that all taxi and private hire policies work in roughly the same way. It is equally easy for a broker or underwriter to assume that requirements which work perfectly well in one licensing area will be rejected out of hand in a neighbouring one.


Assumption is the catalyst for the vast majority of problems in our sector. It’s something we should avoid wherever possible.


What are you actually buying?


The insurance product is more than the certificate and the promise to pay an eligible claim. It also includes everything that surrounds the policy: how quickly telephone calls are answered, how accurately documents are produced, whether emails receive a meaningful response from someone who actually understands the product and, more importantly, how easily the policy and product can adapt when the operation changes.


Some insurers and brokers have systems which allow routine changes to be handled quickly and efficiently. Others require almost every single small request to be passed through several people over the course of multiple days before a decision can be made.


The difference may not be obvious when you’re comparing quotations, but that £200 a year you’re saving today may cost you multiples of that when you’re off the road or have a vehicle sitting in your yard that you can’t get out because you can’t change it onto your policy instantly and it takes days instead of minutes. A fleet that rarely changes may never notice, but an operator that is regularly adding drivers, replacing vehicles or dealing with different licensing authorities certainly will.


This does not mean that the most expensive policy will automatically provide the best service. A higher premium is not proof of competence, just as a lower premium is not proof of poor service. The point is that service has a value of its own, and operators should consider that added value when comparing products.


We do this with almost every other supplier. We consider how quickly the garage can repair a vehicle, how reliable a communications provider is or how responsive a DMS partner can be when something goes wrong. Insurance seems to be one of those products that escapes the same examination, as the


PHTM OCTOBER 2026


premium is always what seems to dominate the conversation.


When everything is running normally, most insurance policies look exactly the same. The vehicles are covered, the certificates are filed away either on your dispatch system or in a filing cabinet, and the monthly or annual premium leaves your account. They all seem to be able to do that correctly, it seems.


The real litmus test appears when something changes. You get that call at two in the morning and a vehicle is written off and needs to be replaced. You have a new driver in the office wanting to start. Your licensing officer asks a question about your documentation and requires an amendment when you renew a plate, or you expand into a new operating area and your requirements change. This is when the quality of your product becomes visible.


For a small operator, the ability to speak to a real human being who understands the business can be worth considerably more than a modest saving on the initial premium. So can having a broker who knows your fleet structure and does not require the entire history and modus operandi to be explained on every phone call.


There is also value in being told no. Not every driver, vehicle or unusual request will be acceptable to an underwriter. Operators understand that. A clear answer given promptly allows the business to look at other options and make other plans. Silence, vague updates and uncertain timescales are often more debilitating to a business than an outright refusal given in good time, purely because an operator cannot make a decision whilst there’s no resolution on the table.


Claims are only part of the test


The traditional measure of an insurer is how it performs when a claim is made, and rightly so. A low premium means very little if a legitimate claim becomes an exhausting battle. However, claims handling is only part of the overall relationship.


For private hire and taxi operators, what you really want is someone who will fight your corner when things go sideways. That is worth more than anything.


Smaller administrative interactions generally happen more frequently than major claims. Driver referrals, vehicle substitutions, changes of operating address, letters of indemnity and confirmations form the backbone of the overall experience of the policy.


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