Buy Taxi Gap Insurance

Private Hire Taxi Gap Insurance, do you need it?

If your taxi or private hire vehicle is stolen, set on fire or in an accident and 'written off' by your insurer then what position will you be in?

Your motor insurer may only cover the 'market value' of the vehicle at the time of the loss, leaving you to replace the vehicle, possibly settle a finance agreement and all with an insurance settlement far lower in value than you originally paid for the taxi. How can your prevent this situation from occuring? Ever thought about Gap Insurance for your Taxi from Easy Gap?

Vehicle Replacement Insurance for Private Hire, Taxi, Courier and Chauffeur cars.

VRI Gap Insurance, or Vehicle Replacement Insurance is possibly the most comprehensive form of Gap Insurance available in the UK.

This is because instead of simply protecting the physical cash price that you have paid for your taxi it protects the replacement cost. Please remember that just as your car is losing value of time, changes in labour rates, raw material costs, inflation and even model upgrades means that the cost of replacing your car is increasing.

Vehicle replacement pays the difference between your vehicles valuation on the day that it was written off and the amount of money that you would need to spend to buy another exactly the same age, mileage, conditions and specification as yours was on the day that you collected it from your garage no matter if it has gone up.

Return to Invoice Gap Insurance for Taxi Private Hire and other forms of hire and reward.

If you have ever come across the term 'Gap Insurance' in the past, it is probably Return to Invoice that you heard about. The majority of Gap products sold at motor dealers are RTI Gap cover, and this has been the case for many years. It is possibly the easiest type of guaranteed asset protection (the full title for Gap Insurance), and it is aimed at providing protection to the original price you paid for your vehicle.

Return to Invoice is available for up to 5 years
on any qualifying vehicle use for private hire, but lets have a closer look at how it could work for you. The basis of Return to Invoice Gap protection is that between your motor insurance settlement and your GAP settlement, you will get back the initial cost of the vehicle back in full, simple as that. From that you can clear any financial amount if needs be and the balance of the funds is yours to spend as you wish.

Finance Gap Insurance for Taxi and Private Hire vehicles

Finance Gap Insurance, or Finance Shortfall Insurance is possibly the oldest form of Gap Insurance. If you have a dealer arranged finance agreement on your Private Hire Taxi or hire and reward vehicle, then if the vehicle is stolen, or in an accident, and 'written off' by your motor insurance company then you will still be faced with a settlement on your agreement. It is often the case that the finance settlement is actually higher than the vehicle value protected by your motor insurance policy. This is where a Finance Gap Insurance policy could help you.

Those who may choose Finance Gap may only be concerned that if the taxi is written off then there may be a shortfall between the vehicle value at that time and the finance settlement required on the agreement for the vehicle. If this is the case you are liable for the difference........unless you took a finance gap policy to protect you.

We are often called by Taxi and hire and reward drivers asking for a quote on insurance. However quite often it transpires that they are looking for standard Taxi Insurance and not Gap Insurance. If you too are wondering what the difference is then let us explain. The standard type of Taxi Insurance is required to drive on the roads, carry passengers legally and earn a living from 'hire and reward' driving.

Taxi Gap Insurance is something quite different. Firstly, you have to have a separate taxi insurance policy for a taxi gap insurance policy to be valid. Taxi Gap Insurance is an independent insurance policy designed to cover the depreciation your vehicle has suffered, in the time that you have owned it, in the particular circumstance that it is written off by your insurer. This means that if your vehicle is stolen or written off that you are not left our of pocket. For example you can protect, the finance settlement, in the invoice price you paid or the replacement cost. However, to make clear, the Gap Insurance policy is an additional financial protection you can take out which supplements your motor insurance and certainly will not replace it.

Some quick Questions and Answers about Taxi Gap Insurance

Is Taxi Gap Insurance the same as Motor Insurance for Private Hire? - No, you will need fully comprehensive Private Hire motor insurance as well. The Gap Insurance is an additional financial cover.
What is the difference between Return to Invoice and Vehicle Replacement?
- RTI will cover you back to the original price you paid, whereas VRI will protect you to the cost of replacing the vehicle with the model equivalent to the one you drove away from the dealers. If the cost of the equivalent replacement vehicle has risen, the VRI can protect you above the original invoice price to the replacement cost instead.
Are there any mileage and vehicle age restrictions on the policy? - No, not in terms of the mileage you cover for the duration of the policy or the age of the vehicle at the time you make a claim. However, there are some restrictions on the age and mileage at the time you buy the policy. For example, for Vehicle Replacement Insurance, the vehicle must be less than 8 years old and covered less than 80,000 miles at the time you buy the vehicle and start the policy.