What taxi insurance do I need?

Will any taxi driver insurance do?

Saving money is something that we all strive to do when shopping for anything, whether it is Christmas presents, a new car or even something as needed and arguably complicated as insurance products.

Though nobody likes to pay more than they strictly have to for any service, we also hate to pay less for an inferior product, particularly when we use it in our day-to-day lives and any malfunction could impact your job or income.

This rings true for those driving taxis in a number of ways: cabbies need their cars to be reliable and easy to maintain, their phone’s maps app or sat-nav to work without a hitch, and their insurance to be able to cover them when something goes wrong.

While in previous blogs we have covered the different types of taxi insurance available to drivers and their various requirements and provisions, this time we will examine ways to minimise the amount you pay on premiums while making sure you have the right type of insurance to cover your work.

First steps: what type of insurance?

As we have explored in previous blogs, there are two broad categories for taxi insurance – public and private hire – with a third option for those who drive for Uber. Private cabs are those which only pick up customers with whom an appointment has already been made, such as an airport pick-up or minicab, while public cabs are those that you hail on the street. Licences are needed for both types, and many insurers will require you show them a copy of any documentation ahead of agreeing to insure you.

There is also a third category of insurance products designed for Uber drivers. Though functionally these policies are often no different from other private hire insurance products, they often contain extra provisions that might be useful for those using the ride-sharing app, including public liability cover or more protection for drivers when their car breaks down.

Within these categories, there are three main types of policy that are available. First up are “policy only” products, which are the cheapest and most basic form of taxi cover. The more names that are added to the policy due to multiple drivers, the more expensive these policies get.

“Named driver” policies, meanwhile, represent the middle-ground, where a taxi driver only covers themselves and their activities, with no room for expansion. Finally, the most expensive “any driver” policies ensure any motorist is covered to drive your vehicle. These can be useful when using fleets of vehicles or when sharing rides.

There are then extra things to consider such as public liability coverage, taxi breakdown cover and other optional extras, which may cost more in the short-term but will protect you from a number of extra potential issues. Speaking to a dedicated insurance broker can help determine whether you might need these.

Next up: keeping down costs

Beyond the expertise that a taxi insurance broking specialist will be able to offer you, there are several ways of keeping premiums to a minimum:

  • Downsize your vehicle
    • There are around 50 groups that vehicles can be put into that go towards determining insurance premiums, as categorised by the Association of British Insurers (ABI). Factors such as repairs, safety features and cost of spare parts can all be factors, with the highest group usually high-performance models. If you are still to buy a taxi, factor in which insurance group it will lie in alongside fuel consumption figures.
  • Driving safely
    • This should always be a priority on the road, but driving safely can have a big impact on premiums. You might find that even a minor motoring offence will drive up the cost of a policy, or mean some insurers can’t cover you. Driving safely can also help you build up a no-claims discount over several years and take another chunk out of premiums, building to discounts of up to 75 per cent after five years. You can also consider paying a little more to protect any co-claims bonuses you have built up.
  • Security measures
    • Some policies will offer cheaper rates if you have your taxi outfitted with CCTV, an interior camera or other security equipment to protect your ride from theft. Further details will be needed, and each insurer is different, but in general as long as your security gear meets certain guidelines, it could mean a significant discount.

 Finally: how to find the best deal

Finally, in addition to all the tips we have laid out above, one of the most efficient ways to not only make sure that you have the ideal taxi insurance for you, your vehicle and the type of business you will be conducting is to get a quote from a specialised taxi insurance broker.

The industry’s best brokers will search the market on your behalf – often automatically, with easy-to-use comparison tools – to provide you with the best offers for the bespoke policy you need. This way you can be sure that you are getting exactly the coverage you need at the best price.

Brokers are also likely to have access to products and rates that are not visible when going to insurance providers directly, for example, and can help advise you on the product you need.

Get a quote today to see how much you might be able to save on your ideal taxi insurance policy. Call ChoiceQuote on 01625 400201 to get a quote and save on your taxi insurance premium.