Why Is It So Hard to Find Gap Insurance for Private Hire and Taxi Drivers?

ByJackie Verdier

Private hire and taxi drivers work hard for a living. Long and unsociable hours means that it is a hard way to make a living. With increased insurance costs in every direction. There are of course reasons behind these increased premiums. After all you are using your vehicle for commercial reasons. You will be carrying passengers and members of the public. They will need to be adequately insured while in your car.

So you fully understand the increased costs associated with road risk insurance. It is a hard fact of life but one that you fully accept. So why if you are lucky enough to find an insurance company who are able to offer gap insurance for you are you still paying higher costs?

After all a car is either written off or it is not.You have just as much chance of this happening as Mr & Mrs Joe Average. Don't you?

Well lets explore the reasons behind the insurance companies premiums.

Insurance is as you know all about risk. How likely is a situation to happen and secondly how much will it cost when it does happen?

You earn your money being on the road carrying passengers. The fact that you are on the road a higher percentage of the time means that the chances of being involved in a form of accident which concludes in your car being written off are higher.

So we know that statistically you are more likely to have an accident but that is only part of the story. When you do come to make a claim it will cost the insurance company more. Remember that the principle idea of gap insurance is to protect you against out-of-pocket expenses when your vehicle is written off. This means that depending upon the level of cover you have chosen it will pay the difference between your own motor insurance companies valuation and the outstanding finance, the purchase price you paid or the replacement cost of a like for like vehicle the same age, mileage and condition as yours was on the day you drove it away from the dealership.

There lies the main reason. The average vehicle could lose up to fifty percent of its original valuation within a three-year period. The usage and high mileage that your car will cover will mean that it can lose up to thirty percent more. A total of eighty percent within three years. In fact this means that should you need to make a claim your own insurance company will now be paying the smallest amount and your gap insurance be paying the largest amount.

Statically taxi gap insurance claims in relation to gap insurance companies are traditionally much more costly. This increased claim cost this then passed on to you the end buyer of the policy.

So is there an end in sight? While prices have reduced over the last few years unfortunately it will some time before private hire and taxi drivers pay the same premiums and the rest of the public.

Jackie Verdier Sales Director at Aequitas Automotive Limited

As our name Aequitas suggests our aim is simply to be fair and honest in all we do. No gimmicks, no fuss just fantastic service and real market leading prices via our two brands https://easygap.co.uk/ and https://gapinsurance123.co.uk/. Gap insurance dose not have to be difficult and really can be very easy. Used properly and with common sense it really help you protect your finances. So why not take the easygap challenge and see just how easy gap insurance can be.

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Insurance: Car-Auto
Jackie Verdier

Email Address:SubscribeCar Auto Article FeedFind More ArticlesSearchSimilar ArticlesGet the Most Out of Private Hire Taxi InsuranceTeens, Tweens and Toddlers Under One Roof - Help! Pointers on How to Bridge the Age GapVolunteer Abroad ExpensesRecent ArticlesAuto Insurance - Describing Insurance BenefitsGirly Men Save On Car InsuranceGap Insurance - To Defer or Not to Defer, That Is the QuestionAffordable Car Insurance for Teen DriversBenefits of Short Term Car InsuranceSaving Money on Car Insurance TipsCar Insurance - What You Need to Know About ItMerits Of Car InsuranceCar Insurance Advice That Is Proven BeneficialThe Hidden Costs of Car InsuranceSubmitted On February 29, 2012. Viewed 0 times. Word count: 505.

MLA Style Citation:
Verdier, Jackie".".29 Feb. 2012EzineArticles.com.2 Mar. 2012 .APA Style Citation:
Verdier, J. (2012, February 29). . Retrieved March 2, 2012, from http://ezinearticles.com/?Why-­Is-­It-­So-­Hard-­to-­Find-­Gap-­Insurance-­for-­Private-­Hire-­and-­Taxi-­Drivers?&id=6910999Chicago Style Citation:
Verdier, Jackie "." EzineArticles.com. http://ezinearticles.com/?Why-­Is-­It-­So-­Hard-­to-­Find-­Gap-­Insurance-­for-­Private-­Hire-­and-­Taxi-­Drivers?&id=6910999EzineArticles.com© 2012 EzineArticles.com
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