Taxi Driver Online

Zego launches private hire policy for drivers affected by unrated Alpha’s collapse



Read full article here:

https://www.insurancetimes.co.uk/zego-l ... 22.article

Not a great fan of 30 day insurance, but if it's gets some drivers out of the sh** and back to work then that's a good thing.

The fact that TfL allow such short term insurance is another matter.

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IDFIMH

So 30 day policies already available, but not all licensing authorities allow them?

Yes, thought as much, and the piece is a typical example of what is effectively PR spiel for the company offering the new policy - trying to look as if it's some kind of new product, but actually just trying to exploit an opportunity in the market caused by Alpha's collapse.

wrong solution plenty of alternatives out there just take out another 12 month policy with someone else which is probably what 99.99 % have already done

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Taxis Are Public Transport too

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Presumably the 30 day premiums primarily aimed at those who don't have a shedload of cash. Some will have lost almost a full year's premium with the Alpha collapse, so may not be able to pay another full year premium up front.

But it's no doubt a very expensive way of doing things and, as Heathcote says, it may mean the end of your no claims bonus. But if you don't have the cash flow or credit available, it may represent a short term solution.

if they are the sort of driver who hasn't got money in the bank then they are probably paying monthly installments anyway so would NOT have lost a years premium most companies offer an installment plan (at higher cost)

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Taxis Are Public Transport too

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Think you will find that the credit is not from the Insurance Company. A Credit Company pays the annual insurance fee, the purchaser of the Insurance have to pay the loan back to the Credit Company. If the Insurer collapses, the Credit Company still want the money.

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Chris The Fish

http://www.youtube.com/watch?v=Gdlyi5mc ... re=related

Generally any policy I've been offered has been payable in 3 to 4 months maximum, in instalments, so usually the full amount will be payable within a couple of months. So not necessarily a full year's premium up front, but certainly after a couple of months or so.

And, as Chris says, if it's payable in instalments over the year, then it will be via some kind of third party credit provider, who will still have to be paid.

And even if they've been able to afford a full year up front, that's not to say they'd have the money to do the same again a month or two after - they may have been putting a bit away over they year to pay it all in one go, and/or using all their spare cash over a month or two to pay it. Then next month they may have tax bill, licence fees, holiday or major car expenditure etc etc so no spare cash to pay the premium again.