Why is a taxi insurance policy considered to be more high risk?
Taxi insurance policies are more expensive than a standard private policy because insurers perceive an inflated risk of accident and they adjust the premium price accordingly.
There are several reasons for taxiing being perceived as a high risk job in terms of chances of making a claim.
Firstly taxis typically work unsociable hours such as night shifts and accident rates are high in the evenings due to tiredness, poor vision and drink driving prevalence.
They also usually work in inner city areas especially public taxis who pick up from towns where there is a high volume of people. This means more traffic on the roads and more people so there is an increased chance of an accident involving another vehicle or a member of the public.
Working with the public poses other risks especially for public taxis. They will have a vast client base and often taxi people who are under the influence of alcohol which makes the client base unpredictable. Accidents involving members of the public will usually be very costly to a business.
A taxi will typically drive more miles than a normal car as the job is purely based on travelling to different locations. This means their mileage will be very high and more time on the roads means more chance of an accident.
All these factors contribute to taxi policies being considered as high risk and the subsequent inflated premiums.