When you drive a taxi for hire and reward, your insurance can be expensive. Thankfully, there are plenty of ways you can reduce the cost of your cover.
Here we provide 12 expert tips that will help you save money on your policy while providing valuable information to boost your knowledge on the topic.
1. Speak with a taxi insurance expert
One of the best things you can do to reduce the cost of your cover is to get in touch with an insurance broker like us that specialises in taxi insurance. We have access to specialist schemes you might not be able to find elsewhere. This means we’re often able to find you a quote that’s better suited to your needs and budget.
2. Get a renewal quote 21 days early (but don’t worry if you miss it)
If you’re renewing your taxi insurance policy, try not to wait until the last moment to shop around. It’s usually best to take out your next policy around 21 days before your current policy expires. That being said, if you’ve already missed this window don’t worry. Even shopping around five days before your existing policy expires can help to save you money on your renewal premium.
3. Get on the electoral roll
If you’re eligible to vote, make sure you’re registered on the electoral roll. This brings with it many benefits beyond the political ones and it can even reduce your premium.
Why? Insurers calculate your premium by working out how likely you are to make a claim. Essentially, the higher the perceived risk, the higher your premium.
And that’s what’s working in this case – those registered to vote are statistically less likely to make a claim, which can therefore lower your insurance quote. It’ll also help the insurance company verify who you are and where you live, which lowers the risk of possible identity fraud.
Even if you were born in a different country and moved to the UK, you might still be eligible if you’re from a Commonwealth or EU country and have lived here for multiple years. Make sure to check.
4. Let us know if you’ve earned a no claims bonus on another car
If you haven’t had to make a claim over the last year (or longer), you’ve probably built up a no claims bonus (NCB). This is one of the best ways to lower your insurance premium. But what happens when you’re using your NCB on a private vehicle? Unfortunately, your NCB can only be applied to one policy, so you might find that you don’t feel the benefits of your claims-free driving when you take out a taxi insurance policy.
Thankfully, we work a little differently. If you’ve built up an NCB on a separate vehicle, let us know when you get a quote. We can often ‘mirror’ the NCB you’ve built up on a private policy so you can use it on your taxi insurance policy.
5. Make sure you get the right cover
There are different types of taxi insurance, including policies for private hire and public hire taxis. Make sure you know which type of cover you need for the type of work you do so you remain covered.
Public hire taxi insurance is for taxis that can pick up passengers without a booking. This includes black cabs and other hackney carriages.
Private hire taxi insurance is for taxis that have to be pre-booked. This can include those driven for Uber and Bolt, or minicabs.
6. Compare different levels of cover
People wanting to reduce their insurance premiums will often choose to take out third party only (TPO) cover, which is the minimum level of insurance required to drive on public roads in the UK. But did you know that other, more comprehensive options could save you money?
In some cases, you might find that comprehensive or third party, fire and theft (TPFT) cover can work out less expensive. Those who take out TPO insurance are statistically more likely to make a claim on their insurance than those who take out a higher level of cover. So make sure to get quotes for all the different cover levels.
If you do need to make a claim, a comprehensive policy will also help cover the costs of repairing your own vehicle. This could save you from paying out of pocket for repairs and help you get back to earning a living sooner.
7. Increase your voluntary excess, but only if you can afford it
When you take out an insurance policy, there’ll be two types of excess: compulsory and voluntary excess. These two excess types make up the total amount you would have to pay towards any claim you make on your insurance. Your insurance company will then pay the rest of the claim up to any policy limit you have.
Whilst the compulsory excess is set by the insurance provider and cannot be changed, you can choose the voluntary excess yourself. As a general rule, increasing the voluntary excess can help lower your premium, so consider this if you’re looking to cut the cost of your taxi insurance.
That being said, be careful if you decide to do this. You WILL need to pay this and the compulsory excess towards any claims you make, so you must ensure you can afford to if needed.
8. Think twice about adding named drivers
Whilst adding named drivers to a private car insurance policy can often reduce your insurance premium, the opposite is usually true for taxi insurance.
If you share your taxi with another taxi driver, then you still might want to consider taking out an any driver policy, but if you don’t, it’s usually best to remain the only driver on your policy. This is because hire and reward cover works differently from regular motor insurance; if your insurer thinks the vehicle will be used around the clock, this increases the risk that it will be involved in an accident or breakdown, which can increase your premium.
9. Pay annually if you can
Did you know that paying upfront on your policy tends to work out cheaper than paying monthly? This is because monthly payments usually include interest and/or fees.
So if you can afford it, consider paying for your taxi insurance yearly. It may set you back more initially, but it will actually cost you less in the long run
10. Fit extra security devices
One of the best ways you can save money on your taxi insurance is by fitting extra Thatcham-approved security devices to your vehicle. This includes alarms and immobilisers, both of which help reduce the likelihood that your taxi will be stolen. And if your vehicle is stolen, a tracker can help recover it.
11. Keep your taxi in a safe place overnight
If you have an enclosed garage or driveway to park your taxi at night, your premium will usually be more affordable than if you park it on a public road. This is because the first two options can reduce the risk of your vehicle getting stolen, which means you’ll likely need to pay less to insure it.
12. Tell us if this is a second vehicle
Looking to insure multiple vehicles at once? We can cover most types of vehicles, including private cars. What’s more, taking out cover with us for two or more cars can get you a substantial discount compared to insuring them separately. So if you’re interested in taking out cover with us for both your taxi and another vehicle, let us know.
Speak with us directly for an affordable taxi insurance quote
Whether you drive for Uber or a minicab company, you drive a black cab or you work as a chauffeur, calling us for a quote could help save you money on your policy. Simply get in touch with our team on 0330 678 3376 or book a callback at a time that suits you.