London. What a city! You just have to love it, despite all that traffic, which as a taxi driver you have developed something of a zen indifference to, right? The city couldn’t function without the service that taxi drivers provide. You probably know your area of London like the back of your hand, and you probably already know all of the ins and outs of your legal requirements as a professional. Insurance is a must for any vehicle, and taxis need their own policy.
Taxi insurance differs to insurance for a normal vehicle because it also insures the passenger who is paying for the journey. London taxi insurance can be expensive, so here is a quick guide.
There are two categories of taxi insurance. Private hire taxis are restricted to pre-booking, and are not licensed to pick up the public. Public hire taxis on the other hand are licensed to collect people from the side of the road, as they stick their thumb out, or stumble out of a club.
It is also possible to get many different types of policy: taxi insurance, black cab, and cover for entire fleets, which is recommended if you run a larger cab business as it is cheaper than insuring individual cabs.
Taxi insurance is expensive at the best of times, and even more expensive in London. It is essential to shop around for the best deals. Price comparison websites are a great starting point to find London based insurers, which you can compare to national providers who deal in taxi insurance. Some companies specialize specifically in taxi insurance, such as CoverMyCab, and DNA Insurance. They may be able to provide a better value deal, more tailored towards your needs.
The single best way to get the cheapest taxi insurance is to keep a good track record, and a solid no claims bonus. This dramatically reduces the amount you will pay, because your insurance is based on your individual circumstance. As a proven safe driver you represent much less risk to an insurer, and therefore benefit from a cheaper deal. This discount is huge, and can save you a lot of money, up to 70 percent in some cases.
The final consideration to make is that you should always be looking to get a quote from your potential provider. London taxi insurance is expensive, but competition makes it easier to find the best deal. If you are really up for it you can also get several quotes off companies and play them off against each other. Driving a taxi is a business, and therefore you have to maximise your profits and minimise your costs.
Ex taxis often end up being recycled as it were. They are resold for private use. If you no longer use the vehicle to provide a taxi service, then you will not need taxi insurance, you can simply insure your taxi with standard vehicle insurance.
Also read: Black taxi insurance.