The Right Type of Minibus Insurance
In order to find the cheapest minibus insurance possible you must first make sure that you are taking out the right kind of , and this is even more important if you are using your minibus on a hire and reward basis.
Hire and Reward
Hire and reward is defined as an operator of a vehicle who takes payment for driving a passenger in their vehicle, and this applies regardless of whether the individual will be making a profit from carrying the passenger or not. The payment does not have to be made by the passenger and can be made on behalf of the passenger instead, either through direct payment or an indirect payment such as concert tickets or a hotel room.
Eight or Less
The number of seats on your minibus is a deciding factor when talking about the type of insurance which you need to take out and when looking for the. If your minibus has eight passenger seats or less then your vehicle is classified as a minicab. This means you will have to be insured with your local authority, unless you are located in the Greater London area which means you will have to be insured with the Transport for London (TfL) organisation.
In this case you will require a private hire driver’s license or a hackney carriage license from your local authority or the TfL.
Nine or More
On the other hand, if your minibus has at least nine passenger seats then your minibus will be classified as a public service vehicle. The method of getting the appropriate insurance here differs slightly as you will require a Public Service Vehicle Operators License (which is sometimes known as PSV or PSV-O).
In order to obtain one of these licenses you will have to apply to the national government agency known as the VOSA. The VOSA’s role is to provide licensing and cover for large commercial vehicles, such as minibuses.
Getting the right type of cover is crucial if you are to carry out your duties in a safe and lawful way. The truth is that due to the encompassing definition of ‘hire and reward’ many drivers do not realise they need a certain type of cover, which means that they are driving illegally.
You can find the right kind and the cheapest minibus insurance at Red Metro