Many insurance companies will ensure a minimum age for their drivers. Often they will not cover drivers under the age of 25 and some offer 23. If you have an ‘any driver’ policy it is important to remember that this is not a loop hole, if the policy states no under 25 drivers then ignoring this will make the policy invalid. Taxi insurance for under 25 is very difficult to find and expensive when you can. If possible, avoid using young, inexperienced drivers or speak to an expert for a competitive price. There are some things that reduce the costs for young drivers insurance including a clear driving history or extra driving qualifications.
Some taxis may have what are considered to be ‘modifications’ according to insurance companies. Disabled taxis that have ramps, clamps, straps or converted boots would be considered as modified. This means that these features cost more to insure so your premium would be increased. It is important to highlight these because in the instance of an accident you insurer would cover the cost of fixing or replacing these more expensive features too. Your insurer should ask you if your vehicle has any modifications before constructing your policy.
Your insurance premium is usually based on the address of your home or office or the plating authority of the area you drive in. Many taxi insurance companies will cover you on a regional basis. This means that you will only be covered to work in certain areas of the country and outside of these outlined areas; your insurance will not be valid. If you plan on covering a large distance then be specific with this when getting quotes because some may charge more for this. Some specific areas might also be excluded due to high crime rates or location exclusions so check the exclusions on your policy.
Northern Ireland and London are areas that are commonly not included in insurance policies because of their increased risk. If you are working as a London taxi it is worth finding a specialist based in London to obtain a competitive price. Most people driving in main cities will pay higher premiums due to the increased number of accidents.
Working in London may involve the need to pass a knowledge test to ensure you know the quickest way around the capital. This is done according to the London Public Carriage Office and if you do not pass this test, this may restrict your insurance.
Loss of License or Convictions
We understand there can be changes in your ability to work due to driving convictions or loss of license. In the taxi industry this can take away your ability to earn and some insurers will offer compensation for these instances. Exclusions do apply dependent on the type of conviction or reason for loss of license but this can help you out in difficult times.
If you do have driving convictions in the last five years when you come to apply for taxi insurance then this may affect the cost of your premium. Some insurers will not offer policies to people with certain convictions and others will charge an extra expense. This is because you are considered at increased risk of re-offending, which could lead to high pay-outs for the insurers. It is important to know what happens in the instance that you cause an accident, break a motoring law or lose your license.