Taxi drivers are responsible for the safety of a large number of people on a daily basis and are out on the roads for extended periods of time. Because of these reasons, taxi insurance is often more expensive than conventional driver’s insurance.
Taxi drivers are well qualified and very experienced drivers, so why is it they have to pay more for insurance?
Well, there are a number of factors which are used to calculate taxi insurance, including the fact that they drive more miles than the average driver, they are on the road for more hours, and they operate in heavily congested areas such as city centres – all increasing the probability of being in an accident regardless of driving ability.
Even though private hire insurance is more expensive than regular policies, there are still ways in which taxi drivers can help reduce the costs of both their insurance and their premium:
Named Driver Policy
Insuring a taxi for any driver is the most expensive way to be insured. Instead, look at restricting your policy so it covers just one or two named drivers. If you run a taxi company and need to insure multiple taxis, you may want to look at getting a quote for taxi fleet insurance and discussing the best way forward with a specialist provider.
Low Insurance Group Vehicle
Every car comes with an insurance band rating from 1-50. Cars in the higher groups will be given more expensive policies by insurers, whilst lower grouped vehicles benefit from cheaper options. Every car’s rating is affected by things like the safety features, costs of spare parts and repairs, market value etc. When looking for cheap taxi insurance, always check which car insurance group your vehicle falls into.
Clean Driving License
The importance of a clean driving license can not be reinforced enough with any insurance claim. Any points on your license will immediately affect your premium. These can be points for speeding, traffic violations, driving bans or drink and drug driving offences to name just a few.
Build A No Claims Bonus
Careful drivers with no accidents or claims will build up a no claims bonus, reducing the cost of their taxi insurance. One year’s no claims can see a typical discount of around 20-30% and drivers with up to five years no claims could be rewarded with up to a 75% discount from some insurers.
Taxi insurance with a black box records your driving habits such as your speed, driving style, acceleration, braking and distance, monitoring if you are a safe driver or not, thus reducing your insurance premiums. By agreeing to use telematics, you could save up to 20% on your insurance premium. A black box may be particularly appealing to drivers who have just started their taxi career.
To find cheap taxi insurance and save time in the process, compare taxi insurance from a number of different suppliers to make sure you find the right policy for you. Putting in that extra effort could see you make considerable savings on your taxi insurance.