Some Tips to Lower the costs of private hire taxi insurance

Should you find yourself in the market for private hire taxi insurance or hire and reward insurance for your private hire taxi, you more than likely have noticed that the rates for this can be a bit more expensive than that of conventional coverage for a passenger vehicle. The key reasons are as follows:

  • It is a fact that taxi private hire drivers are likely to drive their vehicles far more kilometres than the average driver.
  • They will often times find themselves driving in congested traffic, the type city centres are known for, thus making the risk of potentially being involved in an accident higher.
  • In today's society, taxi drivers often will drive larger vehicles, enabling them to carry  more passengers than regular passenger vehicles.
  • The drivers of taxis are very often not the owners of the vehicle.
  • Statistics will show that there is a higher percentage of taxi insurance claims to that of private passenger vehicles.

In the eyes of the insurance company, taxi driving carries a few more risks, and that is therefore reflected in the premiums that they will charge. In today's competitive market, finding the right insurance company to do business with is indeed a challenge, but by no means impossible.

As is the case with any type of insurance, it all boils down to how much one is wanting to spend. We all want to spend as little as possible of course however, the amount of comprehensive coverage you choose will ultimately be the deciding factor regarding your actual policy premium costs.

By their very nature, taxi drivers are cautious motorists. Despite this fact, their specific needs and demands regarding insurance are often met with high premiums. There are of course some things that can make a difference in costs.

All of these factors below can have a significant role when it comes to your insurance costs.

  • How long you have been the holder of a full drivers’ licence
  • Whether you have any violations points on your licence
  • The insurance bracket that your vehicle falls into
  • The type of passengers you will be carrying. We are not speaking about fat or skinny, or long or short here. If you are for example, doing school runs carrying children under the age of 16, your rates will be higher.
  • Where your vehicle is stored when it is not being used

Is there any way possible to get insurance premium costs down?

Reducing the cost of any insurance equates to lowering your risk profile. So if you can take steps such as providing safe parking, installing a black box can provide feedback on how you drive will put you on the path to saving on your annual premium.

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