Taxi insurance costs vary rapidly between companies and you can minimise your costs using the following tips if they apply to you. However it is important to always be honest and bear in mind that your policy can be declared invalid if you are found to go against anything in your conditions and you may be refused insurance in the future. Talk to a taxi insurance brokers that specialise in taxi insurance to make sure you get a quote that suits your needs.
Making your Payments
Making annual payments upfront can also save you money as an alternative to monthly taxi insurance payments. If you are an established taxi driver and you know you will still need insurance for the next 12 months it will work out cheaper for you to buy the insurance upfront.
Choose the Right Vehicle
The type of vehicle you choose will also affect the price of your insurance. The most common taxi vehicles are saloon and estate cars. Some of the most popular vehicle makes include Mercedes, Ford, Audi, Volkswagen, Toyota, Lexus, Nissan and Vauxhall.
Cars that allow for at least 4 passengers and have a spacious boot are the most popular options. Choose a vehicle that falls in a lower insurance bracket to keep your costs to a minimum. These mean you can maximise your profits whilst getting good value insurance. Many taxi drivers, due to the high mileage, also prefer Diesel cars because diesel makes things more economical.
Other factors about your car will also influence the price of your premium including the age of the car, cost of repairs, value of vehicle, the mileage, price, quality and engine size. However the number of passengers is probably the most influential factor in the premium costs.
No Claims Bonus
The no claims bonus scheme for taxis works the same as it does for private car policies. You can build up your no claims bonus for every year that you insure your taxi and do not make a claim. The larger your no claims bonus, the cheaper your insurance gets. It is even suggested that one years no claims can reduce the cost by 20-30% in the following year. You do however have to build up a separate no claims bonus for private and public usage. You cannot transfer your no claims bonus between policy types but a good driving history with fewer claims may mean that insurers look upon you favourably. Some companies will offer the opportunity for you to mirror your private no claims bonus for the first year of taxi insurance, which could make it less expensive but others will not.
You can also pay to protect your no claims bonus so if you make a claim it will not affect the price of your insurance the next year. This of course comes at a cost but you need to balance up whether this is cheaper than starting a new no claims bonus.
The number of years for which you have held a taxi badge can have the same effect. The longer you have held your badge, the bigger reductions in your premiums and the more offers you will receive for future insurance.
Insurers will look favourably on vehicles with inbuilt security features. If you have proof of installation of a security device such as CCTV, internal or external cameras, alarms or steering wheel locks. This reduces the chance of theft or incorrect blame in an accident which means pay-outs are less likely in the eyes of the insurers. If you can get such security features fitted then your insurance costs may reduce.
Where you keep the vehicle can also affect the price. As with private policies, keeping the taxi in a locked garage or on a gated driveway will be safer and cheaper than leaving it on the street.