5 common mistakes to avoid when looking for Private Hire insurance

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  1. Not shopping around
  2. Choosing your policy based only on price
  3. Not getting the right level of cover
  4. Not checking if your insurance provider offers additional cover
  5. Choosing an insurance provider with costly admin fees

At Zego, we know that looking for Private Hire insurance can be a time-consuming activity. We aim to take the hassle out of finding the policy that’s right for you by offering cover that suits you, however you choose to work.

To help you with your search for Private Hire insurance, we’ve put together a list of 5 common mistakes that people make. We hope this will make it easier for you to find the insurance policy that suits you best.

1. Not shopping around

It can often take a long time to get an estimated cost for your Private Hire insurance. With so many long forms to fill in and drawn-out phone calls, you don’t always have as much time as you’d like to call company after company, comparing quotes to get the best deal.

However, it’s worth noting that you can often get a better price by shopping around than just by sticking with your current provider upon the renewal of your policy. Both the price of your insurance and what it covers you for vary significantly between different insurers, so it’s still important to compare prices.

To help you save time on your search, we designed a way for you to get an estimated price in under a minute. Zego’s Estimated Quotes help you get an idea of how much your cover will cost quickly and easily. All you have to do is fill in your details using the form below and we’ll show your estimated price on screen.

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If you’re interested in getting a full quote, you can give us a call on 020 7206 0221. We’ll ask you a few more questions in order to get a more accurate price, but it shouldn’t take more than about 5-7 minutes.

2. Choosing your policy based only on price

Whilst nobody wants to pay a high premium, price is not the only thing to consider when you’re looking for Private Hire insurance. In fact, the policy that has the lowest premium can even end up being more expensive in some cases, due to the excess on the policy.

If you have a policy that has a low premium but a high excess, you can end up paying more out of your own pocket in the event of an accident. An extremely low premium can sometimes be a catch, so you should always look further into the details of the policy before you go ahead.

3. Not getting the right level of cover

When you search for Private Hire insurance, you’ll probably come across terms like Third Party Only (TPO), Third Party Fire and Theft (TPF&T) and Fully Comprehensive. These are the different levels of cover that are available. To help you make a well-informed decision as to which level of cover would suit you best, let us clarify a few of these terms.

Third Party Only (TPO) insurance is the most basic level of cover. It insures you for any damage that you do to another person, their property or their vehicle, but it will not cover you or your vehicle in the event of an accident where you are at fault. If you’re looking to protect yourself for personal injuries, or you want to protect your vehicle from theft or fire damage, you may wish to choose a policy with a greater level of cover.

Third Party Fire & Theft (TPF&T) insurance covers you for everything that Third Party Only insurance protects you against, but it also includes cover for vehicle theft or any fire damage to your vehicle.

Fully Comprehensive cover, or Fully Comp for short, is the option that offers you the most protection. It protects you against personal injury costs and damage to your own vehicle, even in the event of a claim where you are found at fault.

The more protection you have on your policy, the more it is likely to cost. However, be sure to keep in mind that the policy with the lowest premium might not offer you all the cover you need for your work.

4. Not checking if your insurance provider offers additional cover

When we say additional cover, we’re referring to optional extras that you can add onto your insurance policy in order to get more protection. We’ll go over a few examples to give you an idea of some things you might want to think about before you buy your policy.

If you want protection in case your car won’t start when you’re setting off to work, it’s probably a good idea to make sure your policy includes Breakdown Cover. Zego’s Breakdown Cover offers you combined Roadside, Recovery and Home cover for your vehicle, so you’re protected if your vehicle breaks down while you’re at home or when you’re working. It costs £40 per year or £8 per 30 days.

How about protecting your No Claims Discount so that you don’t lose the years you’ve earned in the event of a claim? If that’s important to you, check to see if you can add No Claims Discount protection to your policy. With Zego, you can protect your NCD years earned for up to one fault claim.

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5. High admin fees

Some companies will charge extortionate admin fees for changing personal details such as your address or the vehicle you drive. It’s worth checking with a company if they charge any administrative costs for any actions relating to your policy before you buy.

At Zego, we’re proud to say that we don’t charge any admin fees if you update us with your new address or vehicle. This gives you the freedom to adjust your policy to make it suit you better, without paying expensive costs for doing so. Focusing on small details like this can sometimes end up saving you a lot of money.

If you have any questions, you can always get in touch with our friendly team and we’ll be happy to help.

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Zego is a trading name of Extracover Limited, which is authorised and regulated by the Financial Conduct Authority.(FRN: 757871).
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