Taxi insurance can be expensive. Taxi drivers usually cover more miles than other motorists, often in cities and other built up areas. This increases the chance of the vehicle being involved in a collision and therefore increases the “risk” to insurers. Of course taxis also carry passengers which means the driver must be insured to cover this liability. Some specialist vehicles may also fall into a higher insurance group, increasing the cost of insurance. All these factors affect the cost of taxi insurance.
Challenges for Drivers
Nowadays it can be hard for taxi drivers to remain profitable. The introduction of pre-payment apps like Uber has increased price sensitivity amongst customers. Meanwhile whilst increasing fuel costs and other economic pressures create additional financial challenges for drivers. Taxi insurance is probably one of the largest expenses for a driver and just like any other motorist, you want to obtain the best available quotation for the lowest possible price. Although this may seem impossible, there are a few things you can do to help reduce your insurance premiums. Try these tips to lower your premium and save money on your taxi insurance:
- Choose a vehicle from a lower insurance Group – High performance cars tend to be in the highest group. Cars in groups 1-20 are usually a safe bet!
- Drive safely to avoid convictions – Points on your licence will increase the cost of taxi insurance
- Build up a history of no claims discount – Drivers who remain claim free for a year get a reduction of 20% – 30%. If you can remain claim free for five years you could reduce your premium by up to 75%
- Increase your voluntary excess – This can help reduce premiums but make sure you are happy with the amount you may have to pay in the event of a claim.
- Keep your vehicle secure – Additional security features such as CCTV and alarms could help to reduce your premium.
- Shop around – Never auto-renew! Compare taxi insurance online and you could save £100’s in an instant
Average cost of Taxi Insurance
If you’re new to the industry then you are probably desperate to find out the average cost of taxi insurance. Unfortunately there is no easy answer as costs can vary wildly depending on your age, location, driving history, the type of car you drive and more. However most drivers find taxi insurance for new drivers to be particularly expensive, with older drivers benefiting from lower premiums once they have developed a history of good driving. If you’re still curious to find out how much you would be likely to pay for a policy then why not get a quote today, it’s free and only takes a few minutes.
When shopping for insurance it can be tempting to manipulate your details in order to obtain better quotes. This can affect the cost of taxi insurance. However please remember that if you lie or fail to declare something important when obtaining quotes, then you may not be covered in the event of a claim. Always be honest and discuss any issues or questions you have with your insurer.