Becoming a licensed taxi or Black Cab driver is not the cheapest of career choices. The cab alone will set you back thousands of pounds, and you’re going to have to work some pretty long hours to keep up with the HP payments!
There are other essential financial considerations to take into account too, so saving a little bit of money where you can is all going to help improve your financial stability.
However, one expense you cannot scrimp on is black cab insurance. You cannot operate as a licensed black cab driver without the correct insurance, so how can you make this essential more affordable? Here are five tips to help you make an informed (and cost-effective) decision:
#1 – Check the local licensing regulations
Every local authority has specific guidelines, rules and regulations for licensed taxis, so the first thing to do before you start comparing black cab insurance prices is to find out exactly what you need to be able to operate in your area. The wrong type of insurance isn’t just a costly mistake – it could stop you from working completely, scuppering your business before you’ve even had a chance to get going.
#2 – Employed or self-employed?
Most black cab drivers are self-employed, but there are opportunities to work either as an employee or as a sub-contractor for a taxi firm. This can give you a little more stability, especially if you’re just starting out. However, this again will affect what type of insurance you get. Don’t just assume that because you’re working for a company that their insurance will cover you – double check to make sure that you have the protection both you and the Law requires!
#3 – Ensure you’ve included PLI and other additional extras
Comprehensive Black Cab Insurance should be made up of several types of cover:
- Specialist motor insurance (that covers you and your vehicle for commercial rather than just domestic use)
- Public Liability Insurance
- Breakdown Assistance (including a replacement vehicle if possible)
- Public Hire cover
- Private Hire Cover
- Loss of earnings cover
- Illness or injury insurance
For your PLI you will need to check once again with your licensing authority or local council, as some have minimum coverage requirements (particularly in London).
#4 – Look for a dedicated specialist broker
You could spend hours online looking for cheap Black Cab Insurance, but for better advice and a better price it’s best to talk to a specialist broker. Not only do they understand the exact requirements you’ll need to make sure your insurance cover meets all requirements, but they can also use their position within the industry to find you the best deals and the most affordable cover too.
#5 – Sharing a cab – insurance for multiple drivers
A top-of-the-range Black Cab could cost as much as £30,000 brand new, and even second-hand cabs will cost thousands. So to reduce the costs many taxi drivers share a cab, with one driver using the cab during the day and the other during the night. However, shared ownership can have quite an impact on the cost of your insurance, so check with your broker (and again with the licensing authority in your area) to find out what type of cover you’ll need if you’re sharing a taxi with another driver.