In the current financial climate, and amidst fierce competition from the next generation of app-based passenger pick-up apps, it’s only natural that as a taxi driver or the owner of a taxi firm you want to reduce the costs of your taxi insurance, and so the overheads of your business, wherever possible. So here we give you a few indicators that can affect how much you pay for your taxi insurance.
Type of vehicle – As with any type of car insurance, the type of vehicle that you use will have a substantial bearing on the amount that you pay for your taxi insurance. As a general rule, vehicles with bigger engines will cost more to insure. There are other factors to consider though, such as how common it is for your model of vehicle to be stolen or involved in an accident.
Type of taxi license – Private hire and hackney drivers face different risks on the road on a daily basis, and this is reflected in the slightly different premiums that they may pay.
Type of taxi insurance – There are different levels of cover available to you as part of your taxi insurance, with each additional risk covered potentially costing you a little more. However, this extra cover can often pay for itself many times over in the long run. As a bare minimum you will of course need to have third party, fire and theft cover, but you should also consider comprehensive cover which will protect your vehicle in all circumstances, as well as things like public liability cover and personal accident insurance.
Age and experience of driver – As with any driving, your age and the amount of driving experience you have will have a significant impact on how much you pay for your policy.
Points on license – Generally speaking, the cleaner the license, the lower the insurance premium.
The times that you drive – If you’re working the night shift, especially on Friday and Saturday nights, you face different risks to your daytime colleagues. The types of passengers that you carry can also come into play, particularly if you transport children under 16.
Security measures – The more security features you have fitted, ranging from immobilisers and alarms to in-car CCTV, the cheaper you’re taxi insurance is likely to be, generally speaking. Where the vehicle is stored will also make a substantial difference, with parking in a secure garage in a ‘safe’ neighbourhood being the best option.
Years without claiming – Finally, as with any vehicle insurance, you can usually build up a no claims bonus for each year that you don’t claim on your own insurance, effectively rewarding safe and responsible drivers.
For open and honest advice on your taxi insurance policy and costs, get in touch with Park Insurance, an expert broker with more than 20 years of experience.
