Black Box Taxi Insurance

What is a black box or telematics taxi insurance policy?

A “black box” or a “telematics box”, as they are also known, is a small box that is installed within a vehicle, usually out of sight behind the dashboard and is responsible for recording driving information. They record telemetry as well as cornering, braking and accelerating habits as well as the speed at which you drive.

The box also contains a GPS that records the exact location a car has been driven and at what times. The black box has no control over the car, it is simply there to record how the car is being driven and to be able to record the location of car should the vehicle be stolen or involved in an accident.

Why have a black box policy for your taxi?

These are the main reasons that any taxi driver, particularly beginner cabbies could want to have a black box installed in their car:

Vehicle Tracking

Not only is it important for the taxi company to know where all of their vehicles are in order to organise collections in an economical manner, if the vehicle is stolen the GPS tracking can help police quickly locate and retrieve the stolen vehicle.

Journey Optimisation

By being able to track where each taxi is, taxi companies are able to optimise routes to reduce fuel consumption, reduce unnecessary mileage and better manage taxi driver’s working hours. Overall this will benefit revenues and reduce unnecessary costs.

Improve customer service

People in search for a taxi appreciate a fast and efficient service; nobody wants to be waiting around for long periods of time for a lift. With GPS tracking through a telematics box, taxis are less likely to break down and can travel more efficiently when directed via the optimum routes.

Insurance Purposes

With a black box equipped, insurance companies know for a fact that they aren’t going to be on the receiving end of false claims and can easily identify drivers who don’t speed or drive in a dangerous manner.

Telematics boxes record all driving habits so insurers will know if you were speeding or driving in an erratic fashion at the time of an injury. With a black box equipped in your taxi you can also receive the benefits of reduced insurance rates. Compare taxi insurance quotes online with Quote Goat to see if a black box could help reduce your policy.

Types of black box taxi insurance policy

There are three main types of taxi driver insurance to choose from when it comes to a private hire taxi: policy-only, named driver and any driver.

As well as these three types of taxi insurance, you will also need to choose whether you have third party only, third party, fire & theft or fully comprehensive cover; just as you would for a standard motor insurance policy.

Policy-Only

Typically the cheapest level of cover, with the cost increasing for each name that you add to the policy.

Named Driver

Insurance for a taxi driver purchasing their own policy covering just themselves.

Any Driver

As the name suggests will cover any driver using your taxi.

Third Party Only

The minimum level of insurance required by law, covers you for damage or injury to 3rd party property and 3rd parties if you are deemed to be at fault. Third party will not cover damage to your own taxi or yourself.

Third Party, Fire & Theft

Covers the above as well as the cost of replacing or repairing your taxi should it be stolen, damaged during an attempted theft or as a result of fire damage. It is important to note however that your claim may not be paid out unless you adhere to your policy’s terms which for example could include not paying out for theft if your vehicle was not properly secured.

Fully Comprehensive

The most complete level of cover which will usually everything above as well as damage to yourself or your taxi in the event of a claim, if it is your fault. Fully comprehensive policies may also include optional extras such as legal protection, which you can decide whether you require or not.