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Can’t get a taxi? They’ve just lost their insurance!

May 22, 2018 | Insurance

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You know it’s difficult enough as it is to get a cab. It’s unlikely that there is anybody who hasn’t felt the burning rage, trying to flag a taxi or Uber or private-hire at daft o’clock with no luck. Well, unfortunately, things have been a little more difficult recently, with Danish insurance company going bust now means that many private-hire and taxi drivers have been left uninsured. So, the main questions here are why Alpha went insolvent in Denmark, and what are taxi drivers doing about it?

What caused Alpha to go bust?

Same as any business these days, Alpha is among a number of downsizing or liquidating companies. This is a time where businesses can start from a laptop, and look as premium as well-established firms. Look at the downfall of Toys R’ Us earlier this year. Unfortunately, in the case of Alpha, there isn’t only job loss, there are hundreds-to-thousands of customers now with uninsured vehicles.

Not only this, but the option to compare insurance online in recent years has meant that market competition has never been stiffer. This is bad for some firms, but it can only spell savings for the consumer! On the side of insurers, however, there are those who have suggested downsizing are doing so to fall under certain tax thresholds and others who have suggested that companies simply can no longer compete in today’s market.

What did taxi drivers say?

It’s less about what they’ve said, and more about how they were notified. Many drivers across the country were told that they were no longer insured – via text message! Watching the news be unfolded, examples were shown of the style of text, one of which read:

“URGENT MESSAGE – your taxi insurance policy with Alpha Insurance is cancelled with immediate effect…”

There were reports of drivers stopping, mid-journey, to allow their customers to alight. For many, the risk of driving uninsured needed to stop ‘with immediate effect’, especially as there are a number of non-British taxi drivers. Nobody wants to be on the wrong side of the law, let alone in a country you are not native to!

What about existing claims?

Drivers have been told that for any accidents they had up-to 4 weeks before they lost insurance, they have until November 8 to place any claims for these incidents. Naturally, there are those who feel cheated by the closure of Alpha, and perhaps this will not be the only instance in which this happens. The market transition has been apparent for nearly the last decade, are we to say goodbye to traditional insurance methods?


Who knows what futures are in-store for insurers, but for now there is a lot of business to pick up from the closure of Alpha. Plenty of new customers to insure, and for many taxi drivers or private-hire, this may be one of the few times you have decided to alter your insurance policy. Happy hunting!

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