How Can I Lower My Taxi Insurance Cost?Â
Taxi insurance can be very costly, but there are many things you can do to reduce your premium prices. Our blog will look at some of the tricks of the trade that will get you cheaper taxi insurance in the long run.
Why is taxi insurance so expensive?
Taxi driver insurance is considerably more expensive than standard car insurance for 2 main reasons. First it’s the nature of the job, as taxi drivers tend to cover a lot more miles than a standard driver. They also do so in much more congested times.
The second reason is the fact that taxis are also likely to be a lot larger than standard cars. This puts them in a different, more expensive car insurance group. The higher the insurance group your taxi is in, the higher the premium costs.
This can be extremely frustrating, especially when trying to get taxi insurance for under 25 year old drivers, with less driving experience and no claims bonuses. But nonetheless, taxi insurance is mandatory and you will need the cover in the event of an accident.
Luckily we have a number of simple changes you can make in order to save some money in your future premiums.
Compare taxi insurance providers
Long are the days of finding what you thought was a price comparison website, and actually ending up giving away your details to too many insurance brokers, ready to try and sell you what they think is the best policy for you.
Comparison sites are here to stay, and they are the best way to find the cheapest option for your car taxi insurance. These sites do most of the leg work of finding insurance providers that fit your requirements, all you have to do is pick the one that suits you best.
Comparing quotes online will also give you a wider range of policies to pick from. By doing this, you will not only be able to find the cheapest taxi insurance quote, but you will also find the best value quote, as all the prices will be based on the level of insurance cover you need!
There will be the odd occasion where you will be able to choose and activate your new policy online, but if not, you will only receive calls from the providers you select instead of getting endless cold calls from insurers, sometimes even after you have picked your new provider.
Choosing the right car
The car you choose for your taxi service can be a big factor affecting your insurance price. If you don’t have to use a black cab, you have a lot of freedom to choose the best vehicle for the service you want to offer, and insurance price should be one of the things you think about..
There are a total of 50 insurance groups your car can fall in, with the highest groups attracting the most expensive premiums. The grouping of each vehicle is decided based on the car’s safety features, cost of spare parts, vehicle price among other things. Visit Thatcham Vehicle Search and you can find out what insurance group your car is assigned to.
If you are looking for a different car to get cheaper taxi insurance, it is important to know that the smaller the car is (both in size and in engine) the cheaper the insurance will be. As mentioned earlier, the larger the car the higher the insurance group it will fit in, so smaller cars tend to have cheaper premiums. On the other hand, if you already have a car, or you are driving a peoples carrier or minibus, there are other things you can do.
Pay for the policy upfront
Paying for your insurance premium annually can also be a good way to save some money. By doing this you will be able to avoid interest being added to your monthly price. It will also save you the hassle of monthly payments.
Not all drivers are in a position to afford this, but if you can’t pay annually try to at least avoid any weekly taxi insurance, as these are often much more expensive than monthly and annually policies, especially in the long run.
Install a Black box
A black box or a telematics box is a piece of equipment installed in your car that records driving information. The box will record data about your driving habits such as speed acceleration, breaking, cornering, location, and other things. This is a good indication of your overall driving for insurers.
A black box can help reduce your insurance price for two main reasons. Firstly, black boxes contain GPS tracking, so if the vehicle happens to be stolen it can easily be located and hopefully recovered by the police, reducing the insurance claim risk.
The second reason is the fact that insurance companies will know all your driving habits. So if you are a safe driver that stays within the speed limit, this can be easily identified and your insurance premium price will reflect that.
Security measures
There are lots of security measures drivers can use to reduce their insurance price. Some of the security equipment that can help reduce your policy price are:
- CCTV system (Dash Cam)
- Trackers
- Black box
- Immobilisers
If you have any of this equipment installed in your taxi you should always disclaim it to your insurer. They could reduce your premium price noticeably.
Build a clean Record – on and off the wheel
It’s obvious that if you have any points or driving convictions, your premiums will be much higher. But you may be surprised to know that any other convictions, even if not driving related, will also be accounted for in your insurance price.
This is because statistically drivers with criminal convictions are more likely to be involved in an accident. Insurers take this very seriously, some even refusing to offer cover!* The best advice to give here is to drive safely. Abiding the rules of the road at all times will reduce your chance of getting points and making a claim.
One of the benefits of doing so is that your insurance price will drop in the long run. Insurers offer considerable discounts to drivers who are able to stay claim free, sometimes up to 30% off! So the higher your claims bonus is, the lower your insurance price.
As you can see there are many simple ways to reduce your premium price. Use Quote the Market to compare taxi Insurance, and see if you can reduce your policy price.
