Taxi Insurance Tips for New DriversLast modified:
If you’re just starting out as a taxi driver, there are a few decisions you can make early on that can impact the cost of your taxi insurance.
What influences the cost of taxi insurance?
The type of licence you operate
Private hire insurance costs less than public higher insurance due to the additional risk that comes with picking up fares from the street. However, public hire means a greater opportunity to earn.
The kind of taxi you drive
Sensible, reliable and without modifications to performance or appearance are all good tips when choosing a taxi that’s cheap to insure. If you are planning on offering an executive service, driving a prestige vehicle, you can expect to pay more for your insurance.
Some insurers offer a reduction in rates if you agree to a restricted mileage policy. The thinking here is that the less miles you drive, the less time you spend on the road and so the less risk you represent. It’s important to be as accurate as possible when estimating your mileage since policies can be invalidated if your mileage is higher than you estimated when you make a claim.
Where you operate
Statistically speaking more accidents happen in built-up, urban areas. Where you are based in the country can also influence your quote. This has to be weighed against the fact that there is more work available in cities and busy towns than in quieter rural areas.
The hours you work
Working unsociable hours, or during busy periods statistically raises risk and insurance costs. If you know for a fact that you won’t be doing this then it’s worth discussing a reduction with your insurer.
Where you keep your taxi
If your taxi is stored off-road, in a secure facility or garage when not being used, than the risk of theft and damage is reduced and in theory, so too are your insurance premiums.
What kind of security you have in place
Installing certain recognised alarms, immobilisers and tracking systems can reduce insurance premiums, but it’s important to check with your insurer first to confirm if this is the case and which devices they recognise.
All modifications must be declared to insurers, not just those that change performance or appearance. Although these attract the highest premiums, it is still important that all your modifications are covered. For example modifications to enable wheelchair access can be great for increasing earning capacity and complying the local and national legislation, but they must also be covered in the event of a claim.