We all look to make savings where we can and there are things you can do to reduce your taxi insurance. But it is worth remembering that cheap taxi insurance doesn’t mean it’s the best policy for you.
Taxi insurance companies look to reward good drivers with lower premiums so those who have not had any accidents, driving endorsements or convictions will pay less than those who have made claims or been prosecuted.
Consistently driving safely is the best way to achieve this and year after year of careful driving and building up your no-claims discount is one of the best ways of doing this.
Taxi insurance brokers, such as Patons, help drivers find the right cover in the first place, ensuring it meets their requirements. We recommend taxi drivers choose the insurance that covers everything they need, rather than going for the lowest premiums. However, whether you have private hire insurance or public hire insurance, there are still things taxi drivers can do to lower their bills.
Finding the right policy in the first place can save you money compared to taking out a taxi insurance policy and having to pay for optional extras such as public liability insurance to protect the driver in the event of a claim. And if a driver already has services such as a breakdown policy elsewhere, it may not make sense to take it out as an optional extra with their new policy.
When a driver takes out a taxi insurance policy – whether it is private hire insurance, public hire insurance or taxi fleet insurance – the insurer will set a compulsory excess, which the driver will have to pay in the event of a claim. There is also a voluntary excess which is agreed between the driver and the insurer. For some insurers, a higher voluntary excess can lead to lower premiums, but it is worth remembering that in the event of a claim, you will have to pay more towards the cost of repairs. For drivers who choose to pay a lower voluntary excess – or none at all – the cost of their premiums could end up being higher.
Taxi drivers may want to include a number of additional drivers – licensed with the same local authority – on their policy or allow any driver to use their vehicle. But policies that allow any driver are more expensive and a policy with only one or two drivers is one way of reducing costs.
Another way of reducing your taxi insurance policy is to pay annually, rather than monthly, although this is not always an option depending on a driver’s cashflow. Paying by monthly instalments might be easier to manage, though the total cost for the years premium includes interest and will be higher than it would be to make a single payment.
While insurance companies focus on the driver and their vehicle to calculate the risk and work out premiums, by taking these steps, drivers can save money on the cover that best suits their needs.