The worsening recession in the UK and rising unemployment has led to many to consider starting up taxi or private hire businesses. Why is this? The barriers to entry are relatively low especially if you own a suitable road worthy vehicle. Along with taxi insurance, licensing from the local authority is the biggest stumbling block.

Other reasons for those trying their hand at taxing are the increasing reliance on the car to get from A to B which is especially true in rural areas where public bus and train services are few and far between. This issue is compounded by the fact that the UK has an aging population. Although not always the most pleasant aspect of taxi driving the young population who party all night rely on taxis and private hire as there only means of transport late at night, therefore, demand is high.

There are of courses differences in the types of taxis on Britain's road, for example Hackney Carriage taxis which are known as "Black Cabs" in London are licensed to stop in the street to collect fares unlike private hire vehicles that can only pick up customers who have booked over the telephone. Hackney Carriages are heavily regulated by local authorities because of this distinction. Many taxi drivers are self employed, although there are co-operatives and small and large companies who also operate.

In the last few years getting a taxi insurance quote has become easier as more brokers and insurers offer their products online. Depending on your circumstances, taxi insurance maybe expensive in the first few years because ordinary no claims discounts in some cases do not count towards a "taxi no claims bonus". In addition, claims excesses could be high and there will be strict conditions imposed on the number of passengers you can carry, therefore, always seek professional advice and shop around to ensure you receive the best deal and cover for your new occupation.



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