Private hire helps in better maintenance of vehicles: Good maintenance of vehicles is not just an advantage for private hire vehicles over public hire vehicles; it is a basic necessity. Unlike public hire service, which picks up passengers without previous bookings, private hire service requires a booking from passengers. As such, a private taxi is not so much on the road as public hire services. People make a booking for private taxis for weddings, function, travelling long distances and for other special occasions, which makes customers look at the condition of the vehicle before hiring them. Personal hire insurance requires more maintenance amount when compared to public hire insurance. Personal hire insurance levies lower premiums: Since the time spent by private service vehicles on road is less than public services, which makes them less susceptible to risks on road. As per statistics, the number of accidents occurring to private hire service vehicles is less than the accidents occurring to public hire vehicles. Insurance companies consider this fact while deciding premiums. Since premiums are not fixed and depend on exposure to risks, the premium is less for personal hire insurance. Personal hire insurance needs a special license Personal rented service drivers require a special license in order to drive private taxis. They have to pass a licensing test for approval for license. Further, a thorough criminal check is run on the background of the driver of a private taxi. The responsibilities of the driver are greater in private hire service. The license that the drivers are given is different from the license of personal hire service. Private Rented insurance is difficult to get than public insurance: Although the premium charges are lower for private rented insurance when compared to public insurance, personal hire insurance are difficult to get. The reasons for this difficulty range from increased risk to passengers to a thorough check on the background of drivers. The licensing requirements are more for private hire service. The insurance company considers all these factors before issuing cover. The company verifies all the details, which convince and proves cover only after thorough investigation. Therefore, personal insurance is difficult to obtain than public insurance. The procedure for public taxi insurance is easy since so many stipulations are not necessary. Rules for insurance eligibility vary between private and public hire insurances: There are different rules for private and public hire services. Private taxi service is not allowed to use its vehicle as an advertising platform. The driver has to wear his private taxi insurance batch all the time he spends in the taxi. He also has to keep a check on the time and place at which customers were picked up and dropped off. The vehicle also has to keep a check on the mileage on the vehicle’s meter. He has to make a note of their addresses and telephone numbers for future reference. The logs that the driver maintains can be verified at any tie. Insurance companies provide insurance only for a company that maintains all the rules intact.
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