WhatsAppDoes PCO car hire include insurance?
To get started as a private hire driver in London, there are a handful of important issues you’ll need to take care of. Aside from getting your private hire driving licence and an appropriate vehicle to work in, one of the most important things is finding an appropriate insurance policy.
As more and more people turn to PCO car hire services, a common question is whether or not insurance is included. The short answer is that yes, it often is, but it’s important to understand some of the details of the situation as well.
Insurance is often included
With car hire services that specifically focus on providing PCO-licensed cars to private hire drivers, insurance is often included as part of that package deal.
This is one of the main selling points of using a service like this. The car comes with its appropriate licensing and checks already completed, and with hire and reward insurance in place. As a result, you’re ready to start work straight away, with no delays while you try to get your head around all the paperwork involved.
Different services will offer different packages, and you’ll always need to check whether your specific car hire package includes insurance. In most cases, however, it will.
What is PCO car hire?
PCO stands for the Public Carriage Office, which was the name of the department in TfL that used to deal with Private Hire licensing for drivers and vehicles. While it has since been integrated into another division at TfL, the name has stuck.
PCO car hire providers offer cars that meet TfL’s private hire requirements, including age limits, safety specifications, and emissions standards.
They will have passed all the necessary checks, and have the necessary licence documents, meaning the car is ready to be used for work straight away.
This removes barriers to entry for newer drivers who can’t afford their own vehicle, but it can also be a far more convenient solution for experienced drivers, who don’t want to deal with all the licensing and insurance-related paperwork associated with owning a car.
What kind of insurance do private hire drivers need?
As a private hire driver, there are often a few different kinds of insurance that you need to have in place.
Hire and reward insurance
This is the most important insurance for private hire drivers. It’s what allows you to carry passengers for money, and you need it to legally be able to drive for companies like Uber or Bolt.
Social, domestic and pleasure insurance
This is the kind of insurance that covers you while you’re not at work, whether that’s driving to the supermarket or taking the kids to school. In many cases, a private hire vehicle insurance policy will also include this level of insurance.
Public liability insurance
Aside from vehicle insurance, it’s important to make sure that you also have some sort of Public Liability Insurance policy in place. This is there to protect you in the event that a person is injured or their property is damaged while you’re working. Again, this kind of insurance is often bundled in with comprehensive Private Hire policies.
Using the right provider
If you’re going to work for a company like Uber, you’ll have to make sure that the insurance policy you have is with an approved provider. These providers need to use Instadoc verification, so that your insurance documents can be linked directly to your Uber account.
If you have access to an insurance policy via a London-based PCO car hire provider, it’s very likely that the provider they use will be accepted by Uber, but it’s still worth checking.
Why it’s so important
As a private hire driver, insurance can end up being one of your biggest expenses. Private hire insurance is a lot more expensive than regular, private insurance, and you may very well need to have both policies in place if you also use your vehicle off the clock for personal use.
When you’re comparing PCO car hire providers, make sure that you check the details of the insurance policies they provide as part of your due diligence.
Check the level of cover offered, but also the costs, and compare with other potential options. Insurance ultimately isn’t something you want to mess around with, as if there is an accident, you could be left in a very serious situation.
What might not be covered by your insurance?
While insurance policies are put in place to cover you in the event of emergencies, it’s important to note that some things might not be covered. This could include:
- Any loss of income that results from an accident, such as while your vehicle is in for repairs
- Penalty charge notices (PCNs), fines, or ULEZ/congestion charge costs
- Loss or damage to personal belongings that you left in the car
- Incidents or damage that occur while you are driving under the influence of drugs or alcohol, or from driving outside of the terms of your licence or insurance policy
If you have any questions about what your policy covers, it’s crucial that you ask for clarification.
Check your excesses & fees
Insurance policies rarely pay out everything by default. There will normally be some kind of excess, where you have to pay the first £500 to £1500 of the payout, along with other potential fees.
Make sure that you get clarification on what the excess and fees are for the policies that you’re getting via your PCO car hire provider. It might be possible to reduce them by paying a little more, which can be worth it if you’re working in a busy area like central London where small accidents and scrapes may very well be outside of your control.
A lot of PCO car hire services will include insurance policies, but as with everything else, it’s important to check exactly what it is that you’re getting with those policies. Make a list of core questions, and then ask all of the insurance providers you’re considering going with so that you can make your judgement based on all the facts.