Four ways to push down taxi insurance rates
Almost 300,000 licensed taxis and private hire vehicles transport the UK population, taking us where we need to go. If you’re new to cab driving, you’ll be surprised at how much more expensive it is to get taxi insurance than personal car insurance.
The most common range for taxi insurance is reported to be between £1,000 and £2,000 annually, with a significant number of taxi drivers paying up to £3,000, and costs rising to £7,000 or more in some cases. In comparison, the average cost of comprehensive car insurance is less than £500 per year for personal use, according to the Association of British Insurers (ABI).
Although taxi cover can be pricey, there are some simple ways to keep premiums down.
- Keep calm and compare
The easiest way to reduce the cost of taxi insurance is to compare quotes from a variety of suppliers, shopping around for the cheapest deals giving the most suitable coverage. You can use Utility Saving Expert‘s online comparison tool for free to find policies offering the best value for money.
- Step away from your ideal car
It’s important to have a reliable taxi that drives well and is comfortable for passengers, and critically, for you. As you’ll be spending hours behind the wheel each day, you need to be happy with your choice. However, if you want to keep your insurance down, forget about the high-end vehicle you have your eye on. The cost of taxi insurance is high, and it will be higher if you choose a top-of-the-range vehicle because the parts are so expensive for an insurer to replace if you make a claim. Looking at the mid-range is better for your wallet in more ways than one.
- Up your maintenance
Short of turning the garage into your new local, increasing the amount you service your taxi will benefit you later. Maintaining your vehicle reduces the chance that you’ll experience a pricey mechanical fault causing an accident or an unexpected break-down. As a rule, you should do what you can to avoid making a claim on your insurance if you want to reduce the price of quotes over the years. Taking care of your vehicle now plays out well in the long term.
- Bring your insurer along for the ride
Most common with younger and less experienced drivers, installing a telematics device like a black box enables your insurance company to see how you’re driving, which is a great way to lower high taxi insurance quotes. Assuming you drive sensibly and within the speed limit, permitting your insurer to monitor your driving will be worth it. When they feel confident that you represent a low risk of getting into an accident or making a claim, they’ll lower your premiums accordingly. Bonus, you may only need to install a tracker in your taxi for a year for this to pay off.
What’s more, this is just the start. There are plenty of other ways to reduce your insurance premiums, from parking in a secure location like a garage or driveway, to paying for cover on an annual basis instead of monthly. Combined, these measures show potential insurance providers that you are less likely to make a claim, leading them to offer you cheaper deals and enabling you to make your cash go further without sacrificing the level of cover you need.