Key Choice has provided a welcome boost for the troubled £250 million taxi and private hire vehicle market following the recent launch of a new policy into the sector.

The insurer said its member brokers have found it increasingly difficult to secure cover for Britain's 250,000 private hire and taxi vehicle drivers. Average premiums are £1,000.

KC Taxi is administered on behalf of Key Choice by Marchant & Co, which has a successful track record in the taxi market.

The firm is already receiving up to 120 requests for quotations per day at its call centre since the policy's launch.

These are sourced from Key Choice's comprehensive panel of private and public hire insurers.

Nick Bate, managing director of Key Choice, said: "KC Taxi provides members with a route to market and is also an excellent cross-selling tool."

Cover is the same as if for private motorists, but with the addition of passenger cover and a compulsory accidental damage and fire and theft excess of between £200 and £300 as standard.

As KC Taxi is net rated, commission varies, but is ten per cent on average.