Mistakes to Avoid When Becoming a Taxi Driver

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Written by Michael Foote, Insurance and Finance Expert

Michael 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.

Venturing down a new career path can be an exciting time. But while it may be easy to build up a head of steam and dive right in, there are some thing you need to remember when you’re about to start a new job as a taxi driver.

As well as choosing the correct vehicle, there are a number of key considerations to make regarding your insurance. Unfortunately, though, a lot of new taxi drivers are unaware of these potential pitfalls, and many make the same mistakes – ones they later come to seriously regret.

To make you aware of the things to watch out for, here are X mistakes to avoid when becoming a taxi driver.

Choosing the wrong vehicle

Choosing the right vehicle for your taxi is one of the most important decisions you’ll make. Choose the right car and your insurance, fuel costs and repairs/maintenance will all be affordable, allowing you to make a decent profit.

Choosing the wrong vehicle on the other hand can have dire consequences for your takings. If you’re driving a high-powered luxury car, chances are it’ll cost you a fortune to insure and run, and when it comes to servicing and repairs, they’ll also be significantly more. Choose your vehicle wisely and stay away from fast, flashy motors as they’ll just eat into your takings.

Not having a courtesy car

This is a biggie. Nobody wants to envisage themselves involved in an accident, but the harsh truth is that as a taxi driver you’ll be spending long shifts on the road, so your chances of being involved in an accident increase.

That shouldn’t be cause for major concern though. The vast majority of car accidents result in no injury to people, although the same can’t be said for the vehicles themselves. An accident may result in your car being damaged, which could mean you’re without your taxi until it’s fixed or replaced. Depending on the severity of the damage, that could run into weeks or even months.

Can you really afford to be without your main source of income for such a long period of time? If the answer is no, then make sure your insurance policy includes a courtesy car.

Getting inadequate cover

When changing career to become a taxi driver, some people rush through their insurance process and end up with inadequate cover. This can cause major issues further down the road. Make sure you’re covered for the right amount of mileage and it may also be wise to cover your no claims as you could end up losing out if you’re involved in an accident.

Not comparing insurance quotes

For most of us, comparing our car insurance has become just another part of the insurance process. However, some people out there are still unsure about the benefits of comparison websites, prefer instead to go with companies they’re familiar with rather than shopping around for the best deals on the market.

While there’s certainly nothing wrong with choosing an insurer you trust, by doing a quick search that’ll take no more than a few minutes you could save yourself potentially hundreds of pounds.

Avoid making this mistake and be sure to compare taxi insurance on our price comparison page.