Written by Michael Foote, Insurance and Finance ExpertMichael Foote is the founder of Quote Goat and has over 13 years experience working in the finance, insurance and currency sectors. Since launching Quote Goat he has appeared on TV as well as many of the largest online publications including Forbes, The Telegraph and The Metro. Prior to Quote Goat, he worked in finance in the city for a number of firms including HSBC.
First time drivers may find the prospect of obtaining an insurance policy overwhelming as there are not only dozens of different companies to choose from, there are also a vast array of policies on offer. Hire and Reward insurance should be held by any individual who intends to carry or transport people or goods in return for payment such as taxi drivers, chauffer’s, couriers and removal companies. After all, it ensures that the vehicle and the passengers/goods are covered at all times. Read on as we go over five factors that can affect the premium of Hire and Reward insurance…
Every insurance quote will ask a driver to estimate their annual mileage because a policy tends to be more expensive if the driver intends to be on the road more often. After all, this statistically increases the likelihood of an accident taking place. An individual that works within an industry that requires Hire and Reward cover is usually on the road more than a standard driver and thus, the annual mileage can have a big influence the cost of a policy.
Age of the Driver
Younger drivers are affected by statistics regardless of the type of insurance they want to obtain as they are seen a bigger risk on the road due to their lack of experience. Since there is a lot more at stake when it comes to Hire and Reward insurance, a young driver may be expected to pay a higher premium.
Cost of the Vehicle
Some vehicles are more at risk of being stolen than others which is why expensive cars or vans can increase the premium of an insurance policy. After all, the insurance company takes a lot of data into consideration when determining the premium for a driver, and this is why it is recommended to avoid flashy vehicles when operating within an industry that requires Hire and Reward cover.
There are many older adults who have only just obtained their licence and this means that their premium can be influenced by their experience rather than their age. After all, an experienced driver is considered much safer on the road and therefore less of a risk to the insurance company. As a result, Hire and Reward insurance tends to be more affordable for drivers with several years of safe driving under their belt.
No Claims Discounts
Just like a standard policy, drivers can obtain no claims discounts from Hire and Reward cover in order to reduce their premium. After all, this tells the insurance company that they are a safe and reliable driver. In fact, it can be further influenced if the driver has a clean licence and hasn’t made any claims within the last 5 years.
It important that customers understand that insuring a vehicle for Hire and Reward cover tends to cost more than a standard insurance policy. After all, it is designed to cover both the vehicle and the passenger/goods simultaneously. In addition to this, the vehicle should still possess standard insurance too. For all your hire and reward insurance needs, visit Quote Goats’ trusted comparison site today!