Being a taxi driver can be very demanding, especially at the weekend when everyone is wanting a taxi to go out. Naturally, you can find yourself rushing from location to location to pickup customers as quickly as possible which can have a negative impact on the cost of your taxi insurance policy.
Saving money on Taxi Insurance
Despite all the risks in being a taxi driver, there are a number of things you can do to help bring down the cost of your taxi policy.
Purchase the right sort of vehicle
When you first set out to buy a vehicle for your taxi operation, you should be quite selective.
Buying a car with a smaller engine will generally always work out cheaper. Insures will often give a discount on a vehicle that has less power.
It is always worth considering either and electric or a hybrid vehicle. Many insurers offer discounts for electric or hybrid vehicles. The joy of an electric vehicle is there is also generally less to go wrong and there’s savings on fuel to be made.
Many private hire taxi’s these days are electric or hybrid and for good reason.
Go for a named driver only policy
When obtaining private hire taxi insurance quotes, you will have the option to either have an ‘any driver’ or ‘named driver only’ style policy.
The benefit of an ‘any driver’ policy is that anyone would be able to driver the vehicle. The downside to that is the additional cost due to the additional risk of an unknown driver.
By opting for a ‘named driver only’ policy, you are notifying the insurer of who will be on the policy and therefore often makes it cheaper.
Avoid second occupations
Being a taxi driver should ideally be your only occupation. Although it won’t prevent you obtaining a taxi insurance quote, in many cases it can cause the cost of your policy to increase.
This is because of the unknown factor around your second occupation, especially if late nights or deliveries could be required.
Insurance policies for taxi drivers are known to be quite expensive, however, if you can save for you policy each year and pay for it annually, there are often discounts and saving to be had.
Policies paid for monthly does allow you to manage your finances a little better with monthly instalments but that will come with a finance premium.
Even if you are an UBER taxi driver, a policy paid for annually is the best way to go.
Build up a clean driving history & claims record
Building up your no claims history and having a clean driving record is by far one of the best ways to save money on your policy.
A clean driving history
By having a clean driving history with no penalty points or convictions, you demonstrate that you are a safe and road conscious driver.
A taxi driver without any penalty points won’t have been convicted of speeding or anything else that can cause a policy to increase in cost.
Clean claims history
By having a clean claims history, you show have you are a safe driver and are not causing or being involved in accidents.
Accidents cost insurers money and if you can avoid claiming, you show yourself to be a safe driver and a clean risk to the insurer. If you do not to claim though, then you should feel free to do so but if it can be avoided, then that will be a good thing.
Compare quotes from multiple providers
One of the best ways is to always compare taxi insurance from multiple brokers. Not all brokers have the same rates so by taking the time to speak with multiple brokers, you better give yourself the chance of finding a cheaper policy.
Whether it is public hire taxi insurance or private hire, comparing policies is always a vital thing to do.
Increase your excess
Your voluntary excess is the fee you pay to access the policy in the event you need to make a claim.
By increasing your excess, you take on more of the financial cost when making a claim. The the higher the excess, the lower the premium generally.
It is important to remember though that you should always ensure you can afford your excess otherwise you won’t be able to claim in the even of an accident.
Review your addons
Although taxi insurance brokers are not able to just add additional cover on any more, you should still ensure that any addons for your policy are correct and only what you need.
Having things like windscreen cover or replacement taxi cover are great additional extras but some may not be of any use to you.
Insure multiple taxi’s together
If you have multiple taxi’s to insure, you may wish to opt for taxi fleet insurance. You can make some good savings when you combine vehicle policies together under 1 policy.
A fleet insurance policy allows you to insure all your vehicles under one policy reduce admin and cost.
We can help you look at what sort of policy may be best for you and then connect you with the relevant insurance broker via direct lines.