To a taxi driver, the car is a livelihood and it therefore is important to put in measures to keep it safeguarded. Insurance is a legal requirement for all motorists, including taxi operators; it does not only protect the vehicle, but also the passengers and other road users. The fact is that taxis operate even during unsociable hours and they also end up driving in areas that are built-up and inner city areas that expose them to accident risks. There is also the higher mileage element compared to others on car insurance policies.
Generally because of the risks that come with cabs, their insurance costs more. Some policies also stipulate a minimum age of the driver and others and you would need to do your homework to find the most suitable taxi insurance for you. But even with the higher premiums, as a wise taxi operator there are a few things you can do to lower the insurance premiums to a more friendly and affordable level.
Be wise with car choice – The size of the car, model and make of the car can determine the kind of premiums you are faced with. This is because some cars are high maintenance and repairs and replacements would cost more compared to others. But when choosing the car with regards to taxi insurance, also remember passenger capacity, fuel efficiency and mileage. Choose a vehicle that does not fall into higher insurance categories to get a fair policy underwritten for you.
Restrict driver number of the policy – When it comes to taxis, additional drivers on the policy are common. But one of the simplest ways of reducing premiums on your taxi insurance is by insuring only you as the driver. The truth is that additional drivers attract higher premium rates, because insurers evaluate each driver separately and base the quotes on the highest rate of each. It therefore helps to limit the registered driver number of the taxi.
Take advantage of no claims bonus – Driving carefully comes with a price in insurance. When you are a safe taxi driver, you can enjoy rewards from the policy. This can be done by transferring existing ‘no claims bonus’ from a different insurer or by accumulating the bonus over time, so you can have rates lowered when you renew your policy. The good things about no claims bonuses is that they can be used in private and public hire taxi policies.
Choose voluntary excess – Most taxi policies have compulsory excess and when you choose to raise this amount, then you stand to enjoy yearly premiums that are much lower. It’s a tricky approach because you could end up paying the extra amount when you make a claim, but if you, trust you are a safe driver then this is a very wise approach to reduce your taxi insurance premiums.
Secure your taxi – The safer the care the lower the premiums you stand to enjoy. For instance, taxis that have secure parking at night, tracking devices and safe spaces to keep valuables from sight can drastically lower premium prices.