Getting cheap taxi insurance can be challenging in the UK. There are some minimum taxi insurance requirements you need to meet first. For taxis, standard car insurance is not enough since you are carrying people for pay. It would help if you had comprehensive taxi insurance to cover the people you are carrying.
To get cheap taxi insurance, it is best if you compare taxi quotes online. Money Supermarket works with different taxi insurers and will help you compare taxi quotes so that you and land on a cheaper deal. Compare the Market is also offering taxi quotes comparison to help you get a competitive insurance quotes.
Getting a taxi insurance quote online is cheaper compared to getting one from the insurers’ premises. It is because online taxi insurance usually has fewer overheads. For instance, online taxi insurance does not need an office. The savings on overheads are passed on to the customer.
Before signing up for any taxi insurance policy online, make sure to read the terms and conditions of the policy carefully so that you know what you are covered for. Some of the things to look for in the policy cover include windscreen replacement cover, liability cover, legal fees and breakdown cover. Note that these factors also influence the cost of an insurance policy.
The location of your taxi business will significantly determine the amount of premiums to pay. For instance, if you are based in London, Birmingham and other large cities, you will pay more. The risks in cities are higher due to heavy traffic, unruly passengers, higher crime rate and frequency of taxi drivers of getting drunk. Also, taxi drivers tend to drive more miles, unlike regular drivers increasing the risk.
Besides, taxis fall in higher car insurance groups. It is because taxi drivers tend to drive bigger cars, unlike conventional cars, to accommodate more passengers. A taxi driver must get comprehensive car insurance policies also to cover the passengers.
The private hire taxi insurance policy has three major categories. They are the following:
- Policy only. It is the most basic and cheapest taxi insurance cover. Its price depends on the number of names in the policy. The more the names, the higher the price.
- Named driver. This is the middle insurance cover for taxis. It covers the named driver only.
- Any driver. This is the most expensive cover. Any driver who drives your taxi is covered.
If you have a young taxi driver, there is taxi insurance for under 25. This could work well if your taxi has multiple drivers. If you have UK insurance, it will be easy to get insurance for young taxi drivers. If you have had a taxi badge for more than one year, you are most likely to get an insurance discount.
There are three main levels of taxi insurance. They include:
- Third-party insurance. It is the basic coverage, and it covers third parties against damage as a result of an accident you caused.
- Third-Party Fire and Theft Insurance. The cover has the same coverage as third party insurance but also provides coverage against damages as a result of fire or attempted theft.
- Comprehensive insurance. This insurance covers you as the driver, your car and that of third parties against injuries and damages.
There are many ways you can make the cost of your taxi insurance to go down. Some of the ways include:
- Take advantage of the no-claims discount. Make sure to avoid unnecessary claims so that you can accumulate no-claims discount. This way, your premiums will be reducing year after year.
- Build a clean record. The other way to get the best out of your insurance is by driving safely, thereby building your no-claims discount.