Insurance is a major expense for taxi drivers so if you do drive a taxi then it’s very useful to know what the major factors are that affect the cost of a taxi insurance policy.
Below are some of the main ones –
Type of taxi insurance
The type of taxi insurance you get will certainly affect how much you pay. The two main types of taxi insurance are public hire insurance and private hire insurance.
Private hire insurance is typically cheaper than public hire, all other things being equal. This is because public hire taxis are safer on average since they can only be pre-booked and cannot accept fares from public places.
Value of your vehicle
The value of your vehicle is a big thing that will affect the cost of taxi insurance. If your vehicle was written off and needed to be replaced then your insurance would need to cover that so insurance providers will always consider how much your vehicle is worth.
Level of cover
The level of cover you take out is another thing that impacts the cost of your cover. For example a third party only policy will cost considerably less than a comprehensive policy that includes extra levels of cover such as breakdown assistance.
Your age is always an important factor when taking out any kind of motor insurance and certainly the case with taxi insurance. Drivers under the age of 25 are statistically more likely to be involved in accidents so if you are under 25 then you can expect to pay more for cover.
Your current No Claims Bonus will alter the cost of taxi insurance too. Just like with regular car insurance, insurance providers will consider the amount of NCB you currently have when coming up with a price for the policy.
How you pay
Most people will pay for their insurance monthly since it means you’re able to spread the cost. If you can pay for your policy annually though, then you’ll be able to make a good saving with the majority of insurance providers. Always be sure to push for the best deal when you do this.
The insurance provider
Price can vary quite a bit depending on the insurance provider so it’s always worth getting quotes from a lot of different insurance providers when you want to save money on taxi insurance.…Read More