4 tips for reducing the cost of your taxi insurance
Having a wide-ranging taxi insurance policy in place is a vital part of your job as a driver. Without the right kind of cover, you could find yourself suffering financial pitfalls if a claimable event occurs.
Whether private or public hire, and no matter if you operate in a small village or huge city, you need to be sure you are protected against all the situations that can come up every day.
However, the last thing you want is to pay over the odds for your policy, particularly as such an event may never even occur. Having said that, it pays to be over-insured rather than under-insured. In this article, we’ll list four top tips for keeping the cost of your premium down so you can enjoy suitable cover at a competitive price.
1. Shop around for taxi insurance brokers
The first tip when you start looking for a taxi insurance quote is to shop around. There are hundreds of taxi insurance brokers in the UK, all offering different policies with varying inclusions and exclusions. It is so important to search out quotes from multiple brokers, as they will often have different default prices for comprehensive cover.
There are three types of cover to choose from as you probably know. Third party only (TPO) is the legal minimum level of cover you must have to drive on UK roads; however, this is often not broad enough for taxi drivers (who are on the road all day, every day). A step up from this is third party, fire & theft, which protects your pocket to degree, but again is just not enough for most taxi drivers.
Comprehensive cover is really the only way to ensure you have proper coverage for things like breakdowns, personal accident, windscreen and glass damage and more.
2. Choose a vehicle from the right group
All cars in the UK fit into specific insurance groups, ranging from 1-50. Generally, the lower the number, the cheaper the car is to insure. The elements that define which group a car fits into includes things like repair costs, cost of parts, engine size and performance, and the security of the car.
Some of the cheapest cars to insure in 2019 are:
- Ford Fiesta
- Nissan Micra
- Volkswagen Polo
- SEAT Ibiza
- Hyundai i10
Of course, the group the car sits in is not your only consideration when choosing a vehicle. You will also need to think about passenger numbers, fuel efficiency, and mileage. So, it is best to try and get the best of both worlds if possible.
3. Show you are a good driver with telematics
It goes without saying that being a safe and competent driver is vital to your job, not least because it can have a positive effect on your taxi insurance premiums.
Telematics, or black box insurance, can help you twofold. Not only does it give you clarity over your driving and where you can improve on things like fuel efficiency, it is also a way to communicate to your taxi insurance broker that you drive well within the limits of the law and do so safely.
Your black box uses GPS to record your driving, from speed and braking distance, to how safely you take corners. It is a great way of proving to your taxi insurance broker that you pose a low risk to other road users, thereby making your premium that much cheaper.
4. Secure your vehicle properly
One of the factors that influences your taxi insurance cost is the way in which your vehicle is secured, both when it is not being driven and during working hours. Brokers will reward those who try and keep their car as safe as possible with a reduced premium.
For example, keeping valuables like mobile phones, satnavs, and cash out of sight is very important. Further to that, you can install a tracking device that would help locate the car if it is stolen, as well as keeping it off the road on a driveway or in a garage overnight.
Armed with these tips, you should be able to secure a comprehensive taxi insurance policy for a competitive price.
