How Does Excess Work For Private Hire Vehicle (PHV)?
Though many people can argue that they have paid for car insurance policies and they have never had accidents or any sort of risk, others can also argue that there is nothing good about an accident or any other car-related risk but car insurance is necessary. That is because whenever a risk occurs and it's within your policy, the insurance company will be willing to compensate you fully. Though they are unfortunate situations that we never wish for, insurance companies do a good job of compensating their policyholders in the event of a risk, a move that helps the policyholder get back to the financial situation that they were in before the accident.
The car industry has evolved and one of the most prominent change is the introduction of Private Hire Service. We shall take a look at the Private Hire Vehicle insurance on its excess and understand how it works. The Private Hire excess insurance is a car insurance cover that protects you from the excess costs that you have to pay in the event that the hire car you will be using is stolen or damaged. This PHV insurance arrangement is optional but it is recommended especially when you take this as your full-time job and on the road most of the time.
Due to unexpected circumstances, when an accident happens due to own damage, you will need to pay for own damage excess but when it is with third party you will need to pay third party excess due to property damage or bodily injury and the PHV excess is to cater for such damages. However, this is subject to each insurer requirement and some of the insurer will still need you to bear a minimum sum of the excess or they will only cover own damage excess but not third-party excess.
Private Hired Vehicles are hired mostly to do business and any accident could affect the expected returns of their livelihood. Since not all drivers are careful, it becomes important for them to account for damages that happen to the hired and hence the essence of the excess payment. Private hirers should also not take from granted once they purchase this PHV excess insurance. Even though they do not need to bear the bulk of the excess, the premium also does not come cheap and when it comes to their annual car insurance renewal, it is not surprising that some of the insurer can charge as high as double their renewal premium if the claims amount is high or there are a number of claims during the same year.
A waiver of excess insurance caters for situations that would demand unnecessary payments. Since you don’t know what to expect with vehicles, especially with those that are hired, it is necessary that you embrace the excess PHV insurance whenever you hire a car. It may seem like an extra cost but it will do you good in case of unexpected damage to the hired vehicle. However, the best solution is to drive with extra care to prevent accident and save all the unnecessary trouble and money.