Updated at 2019-09-11 09:29:36 UTC
There is a small difference between a private rental and a taxi. These types of vehicles are usually ordinary vehicles that are approved by the local government for the carriage of passengers. These vehicles are not easily distinguishable as licensed taxis or buses. By law, they can not be stopped on the street and rented. These cars must be reserved in advance to carry passengers. The vehicle is also limited to a maximum of 7 to 9 passengers. The only similarity between these types of vehicles and licensed taxis is that both have the same risks as traffic accidents or vehicle theft. There are many companies around the world that have taken out cheap private hire insurance to maximally insure private rental cars.
Nowadays there are different policies in the market. However, all these contracts can be divided into three main categories: comprehensive insurance, liability insurance, fire insurance and theft insurance. All these policies have different risk cover assets. Depending on the application of the vehicle, the owners can decide what kind of private rental insurance they should buy.
Here are some tips on how to lower the annual premium costs of a private rental insurance.
• If you opt for insurance, you must specify what you expect from your policy. In this way, they can buy the cheapest policy that suits them best.
• The best policy for a vehicle is the vehicle owner's policy. If the owner of the vehicle decides to use his car as a private rental car, he may purchase a driver policy for the owner. The premiums will be even lower if the driver has no previous record of accidents or other traffic violations. Similarly, premiums are lower for young drivers who are physically fit compared to older drivers.
• The liability insurance also offers a very low premium. Third-party policies are more appropriate for owners who hire a driver to perform the private rental service. The only downside to this policy is that it does not provide coverage if the owner was involved in the accident. Therefore, when choosing this policy, owners must be absolutely clear on whether to hire a driver or not.
• Before you take out a private rental insurance, it is very important to take some time and compare the different policies of different companies. In this way you can choose the best policy at a very reasonable price.
Cubit-Insurance is a specialist author of various interesting topics. Further information on the various insurance policies can be obtained by comparing the private rental insurance of various top providers. A more detailed analysis of taxi insurance coverage can be found on the taxpayer comparison website