Similar to most jobs, being a taxi driver presents its own set of challenges. For most people in this field, this will likely be their primary source of income. When you start to consider that the price of fuel, insurance, tax and maintenance are ever increasing, it’s especially important that you get the right level of cover for your needs at the most competitive price. Insurance premiums seem to be rising in most industries year on year for everyone, this also applies to taxi drivers. In this guide we will be looking at some helpful tips to save you money on your next taxi insurance policy.
Buying the right level of cover
To start with, it’s a good idea to make sure you’re purchasing the right level of cover for your needs. Companies will present you with a number of optional extras that can be helpful but you likely don’t need each and every one of these.
By checking your policy documents, you may notice that you’re paying extra for European cover if you take your car abroad, but you haven’t ever left the country with your car in years. Another example would be if you have already purchased breakdown cover separately, but you have also paid for it as an extra through your insurance policy.
Choosing the right amount of excess
Another useful way you can reduce the cost of your private hire insurance policy is to check the amount of standard and voluntary excess you have selected. You will have the option to adjust the level of voluntary excess. If you were to increase this, you could reduce your premium. However, it’s important to remember that you will be expected to pay this amount in the event that you have to make a claim.
Think carefully about what level of excess you feel comfortable with. It may be worth checking with your provider on how much of a difference it makes to your total taxi cover at each excess level. Some companies offer larger discounts for increased excesses, whilst you may not notice much of a difference with others. If you’re willing to take the risk of paying a higher excess should you have to pursue a claim, this could help you save money.
Considering a hybrid or electric vehicle
Electric or hybrid vehicles can in some cases be cheaper to insure in comparison to a petrol or diesel alternative. One of the reasons behind this is down to the car’s engine and overall horsepower. Many hybrid and electric cars don’t have as powerful of an engine compared to a petrol or diesel car, it can generally be cheaper to insure a car with a less powerful engine.
In some instances, a select number of insurance providers may offer drivers who choose electric vehicles (EVs) a small percentage discount. When you consider that taxi insurance normally costs over £1,000, this could be a good saving. This discount is to encourage more and more drivers to switch to electric through green initiatives.
Telematics policy
A telematics policy can help many motorists improve their overall driving, reduce their fuel costs and even save you money on your taxi insurance policy.
There are a large number of insurance providers who will offer you a discount for opting for a telematics insurance policy, sometimes referred to as black box insurance. They will provide you with a tracking device that can be easily fitted inside your vehicle which monitors how you drive, encouraging you to drive safely. If the insurer can see you’re driving in the correct manner, this data will help them see you as a lower risk driver, and in turn, reduce the cost of your cover.
Some telematics policies even provide you with real-time driving data, this can give you live alerts and even help you improve your overall driving.
Be a named driver on your policy
An ‘any driver’ policy can provide taxi firms with a lot of flexibility when managing their business. However, this can significantly increase your insurance premium.
By opting for named drivers on the taxi policy, an insurance company is able to create a more accurate risk factor profile which will apply to both the driver and the vehicle, this will in turn allow them to reduce your premium.
If a named driver has built up a no claims discount for a number of consecutive years, this change can be quite dramatic to the overall cost of the policy.
Compare quotes using a comparison website
Once you know what level of cover you require, an online insurance comparison website such as Utility Saving Expert can help you compare cover from a whole range of providers to help you find the most competitive deal.
Once you complete a short form, which usually takes minutes, you’ll be presented with a list of options from leading industry providers. You can filter these deals and make adjustments allowing you to find the cover that is most suitable for your needs.
Have a clean driving license
Having a cleaner driving record will help you secure a better deal. If you have been driving for a number of years without any incidents with the law, an insurance company will see you as a reduced risk compared to someone who has been driving dangerously on multiple occasions. Having a driving conviction and points on your driver’s license will greatly increase your premium. Some insurers may decline you cover if this is the case.
Paying annually
A large number of taxi drivers will choose to pay for their policy through monthly instalments. This does give you the financial advantage of spreading out payments, however many providers will charge you more for doing this. You could save money by choosing to pay for your policy in one lump sum annually. Alternatively, if this isn’t practical, you should look for providers that don’t charge you extra for paying monthly.
We hope you have found these taxi insurance money saving tips useful. Each tip can help you save; however, the most important tip is to compare prices from a whole range of providers.
