Cab drivers have been rushing to reinsure their cars after insurance company Alpha went bankrupt on Wednesday, invalidating their policies.

Alpha’s bankruptcy filing on May 9 meant all policies were terminated with immediate effect. According to the Licensed Taxi Drivers Association, up to 10,000 minicab drivers and 700 taxi drivers are affected.

But one of the leading specialist private hire and taxi insurance companies is urging drivers to be patient as bokers and insurers are struggling to cope with the sudden surge in demand.

Grant Georgiades, managing director of Plan Insurance, said: “It’s a sad state of affairs for the affected drivers, some whom will have experienced a similar issue when Enterprise collapsed not so long ago. Hopefully the FSCS compensation scheme will help them in the not too distant future, but that doesn’t make the current situation any easier.”

He continued: “Plan Insurance conducts a financial health check on all our trade partners to ensure their solvency. We’d like to reassure all our clients that none of our policy holders would have been on cover with Alpha, as we did not have a trading relationship. As an independent family business, it’s about long-term stability – we’re not in it for a quick buck. We’re currently working flat out to help get these drivers back on the road and able to earn their living.”

He concluded: “Please be patient if you’re struggling to reach us for a quote. If you’ve requested a call-back we will contact you as soon as possible.”

To get a quote, visit www.planinsurance.co.uk and use Plan’s online form or request a call back.