We all want something for nothing. Well, okay, maybe not ‘nothing’, but we certainly don’t want to pay more than we have to for those essentials. And that includes insurance. After all, our love of a good bargain certainly explains all those insurance comparison sites, doesn’t it?
But if you’re in what could be determined as a ‘niche’ market, you may not have the price options that ordinary folk enjoy. While other motorists are finding cheap car cover supplied by Russian Rodents and Welsh opera singers, finding the cheapest taxi insurance that provides you with the cover you need as a professional may not be so easy.
And there’s one more question – even if you do manage to find a company offering the cheapest taxi insurance that’s considerably less than all the other quotes you’ve found, should you sign on the dotted line or should you perhaps go for something that’s a little more expensive?
Cheap doesn’t always mean good
There’s an old saying – ‘buy cheap, buy twice’. Basically that translates into the cheapest doesn’t always necessarily mean the best value. Would you buy a ‘cheap’ parachute, or would you prefer to trust your safety to a slightly more expensive but better made version? It’s exactly the same with insurance, and especially niche insurance for business users.
What does your cheap taxi insurance cover?
While a cheap package may seem attractive financially, you really need to read the small print before you sign. Unfortunately, cheap cover is low-cost for a reason, and that usually means that your cover is not as comprehensive as you thought it was. The cheapest taxi insurance probably won’t include extras such as breakdown cover and a replacement vehicle to keep you on the road while your own vehicle is either fixed or replaced.
It can also have a lot of conditions and provisions buried in the details that result in your cover being limited. Taxi insurance will cover your vehicle for commercial and business use, but it may also place restrictions on night-time operations, for example, or prevent you from taking a particular type of passenger such as children (thus keeping you from tendering for those lucrative school runs).
It probably won’t include secondary types of insurance too, such as comprehensive Public Liability cover, loss of earnings protection or even personal injury cover. Cheap taxi insurance is usually pretty basic at best, leaving you financially vulnerable should things go wrong.
What can you do?
The simple answer is pay a little more on your monthly premiums to get better quality cover. Look for additional extras that can provide you with additional protection, such as a higher level of public liability cover, better personal injury protection, and legal cover. Make sure that the motor insurance you buy is suited to both your vehicle and your operating methods. So if you spend most of your time working nights, make sure there are no clauses that would limit your cover to normal working hours, for example.
This all sounds very complicated…
Which is why it’s a good idea to sit down and talk to a professional – someone who has not only the experience (and the connections) within the insurance industry to find you the right cover at the right price, but who also understands your business too.
Your premiums may end up being a few pounds a month more than they would be if you’ve bought the cheapest taxi insurance on the market. But by paying a little extra you can rest assured that you’ll have the cover you need, you’ll be protecting both your business and your finances, and you’ll have peace of mind too.