Taxi drivers pay higher taxi insurance premiums because of the amount of time they spend on the road, so it is no surprise that they could face even greater costs after claims or convictions.
But this does not mean the end of the road for good deals on their taxi insurance – as long as they are honest with their taxi insurer and taxi insurance broker, when it comes to taking out or renewing their policy.
When insurers are looking at a taxi insurance proposal or renewal, they go back five years into a driver’s history and any convictions during that period can affect the level of premiums they will pay. Even if they have not received points on their licence for a particular offence, it must be declared or they may find their insurance is invalid in the event of a claim.
This also applies to convictions while driving any other vehicles, not just their cab or private hire vehicle. For example, failing to declare points issued for an offence committed in their own non-taxi vehicle could make their taxi insurance invalid.
And taxi insurance specialists know the industry and recognise the difference between someone caught once going one or two miles above the speed limit, compared to a pattern of speeding or poor driving.
Ultimately, insurers try to reward safe drivers with lower premiums and adequately cover themselves for drivers who are more likely to make a claim.
This is why they also want to know about any non-motoring convictions, especially fraud. Giving false or incomplete details may also invalidate a policy. While people might be tempted not to share details of accidents or offences in the hope of cheaper premiums, taxi insurers look at the whole picture and may decide that certain declared convictions or claims do not affect a taxi insurance policy.
Research by comparison site insuremystuff4less found that almost one in four – 24% – taxi drivers have made a claim in the past five years. That is quite a high proportion and demonstrates why insurers see taxi drivers – and other professional drivers who spend more time on the road – as higher risk than ordinary motorists.
And when it comes to convictions, the insurance comparison website found that speeding offences are the most common, accounting for almost 64% of all offences committed by taxi drivers. Time is money for taxi and private-hire drivers, but trying to get to or drop off a fare too quickly will cost them in the long run.
Whatever your driving record, the key to a good deal is to shop around, which is why it is worth using a taxi insurance broker such as Patons Insurance.
As drivers know, there are no fixed rate for taxi insurance. Insurers consider each policy individually and premiums vary, depending on the background and experience of the driver, the vehicle they use, as well as the location and the time of day they operate.
Those who work in busy city centres can expect to pay higher premiums than those who work in rural areas and drivers who work nights and at weekends could pay more than those who operate during the day.
There are other ways taxi drivers can lower their premiums, and the key is to be honest about their driving record. Taxi insurance brokers such as Patons know the industry and work with drivers to help get them the best deals.
All information is correct at time of publication. Information provided within this article may have changed over time. No responsibility for its accuracy or correctness is assumed by John Patons Insurance Services or any of its employees.