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Finding the very cheapest and most affordable taxi insurance is extremely important for any private hire (including black cab/hackney carriages) taxi driver, especially on a self-employed basis. You work hard for your money and want to hold onto as much as of it as possible, this is why it is important not to overpay on your Taxi Insurance policy.

Your vehicle isn’t just your job, it’s your livelihood. Without it, you would have no means to make a living or pay important bills. You will, therefore, want to make sure you have the right insurance policy, at the right price covering you for all possible outcomes.

Despite its importance, taxi insurance doesn’t come without its added frustrations. Unfortunately, private hire taxi insurance can be relatively more costly than standard car insurance.

Being a taxi driver may sometimes be frustrating under certain conditions. You could be in a traffic jam, held up on time constraining journeys at traffic lights whilst pedestrians cross, or even have to deal with difficult customers. Our ultimate guide will help you understand and find ways to obtain more affordable insurance.

Although hackney carriage insurance is generally more expensive compared to standard vehicle cover, we’ll help you take the necessary steps to make sure your specialist taxi cover is as cheap as possible.

Why isn’t taxi insurance cheap?

Why does my policy cost so much? How do I get cheaper taxi insurance?

The reality is, taxi driving involves a lot more risk.

Your annual mileage is likely to be higher compared to a standard driver, you’re also more likely to be driving in less sociable hours, such as late at night where clearer visibility might not be an option .

You’re also more likely to be expected to drive within busier metropolitan environments, such as inner city areas where demand is much higher. This additional risk means that insurance providers will present you with a higher premium, this is why we recommend you compare different policies to ensure you’re getting the cheapest taxi insurance available.

In the most extreme circumstances, you may have a time limit in which you need to reach a specific destination, this is often the case in an emergency situation.

On average, your daily driving experience is likely to be far more eventful when compared to an everyday driver that may take the same route. Unfortunately, this increased risk whilst driving will be reflected within your insurance premium.

Why do you need a taxi insurance policy?

Taxi insurance is required by law.

Without the right minicab insurance policy in place, you are putting yourself and others at risk, you’re breaking the law if you fail to have the right cover in place, this could heavily impact your job.

You could potentially lose your license, and therefore your business, this isn’t worth risking, ensure you have the right cover in place.

What level of cover will you need?

Similar to any standard car insurance policy, you will be able to choose from three main levels of cover. These being third party only, third party fire and theft and comprehensive.

Taxi driver insurance, however, is a little more complex, and the type of insurance you will need will depend on what type of vehicle you will be driving.

There are several different types of policies you may require. Let’s explore these in detail.

Private hire insurance

Private hire taxis are the type of taxi that are unable to pull over for customers who are flagging them down. Instead, private hire taxis must be pre-booked, because of this, they are unable to display a taxi sign. For this type of vehicle, you will need to take out specialised private hire insurance.

Public hire insurance

Unlike private hire taxis, public hire taxis can stop for people flagging them down, they do not need to be pre-booked. This means they can display a taxi sign. Vehicles in this classification are typically the common black cabs that are often found in larger cities like London. They’re able to pick up customers at any time. You will need to look for this variant of taxi insurance.

There are also other specific insurance requirements you may need to consider, these will depend on your individual circumstances.

Policy only

This is the cheapest and most basic form of minicab insurance cover. It is important to remember that including additional names on this policy will increase your premium.

Named driver cab insurance

This type of policy is mainly for taxi drivers who only wish to insure themselves and nobody else. Self-employed taxi drivers will typically select this policy if they own a single taxi and are the sole driver.

Any driver insurance

This is the most expensive type of available cover. Under this policy, any motorist will be covered to drive your vehicle. This type of taxi insurance is designed for taxi driving businesses who have a fleet of vehicles or have several vehicles that could be driven by different drivers.

No matter what type of policy you’re looking for, we highly recommend using our comparison tool to find affordable taxi insurance.

How to save money on taxi insurance

Taxi insurance can be expensive, we understand the importance of trying to reduce your premium as much as possible. Here are a few tips on how to keep your premium within your budget:

Improve the security of your vehicle

Taxi insurance companies will favour vehicles that are kept secure, as they are less likely to be damaged or stolen. By keeping your minicab in a safe and secure location at night, perhaps in a locked garage, or on a private driveway behind locked gates, your premium could be reduced significantly. You could also invest in an immobiliser, CCTV or dash cam, which will help reduce the chance of your taxi being targeted by criminals.

Compare multiple insurance deals

Carry out your own research to find the right insurance policy that meets your needs. Utility Saving Expert can help you with this, use our online comparison tool to compare and find the most affordable insurance available.

Choose a low-cost vehicle

There are more than 50 insurance groups and the highest will attract the most expensive insurance premiums. For this reason, you should consider choosing a vehicle within the lower category range, which will, in turn, reduce your taxi insurance premium.

Factors such as safety features, the cost and availability of spare parts, value of the vehicle and repairs will determine which group any taxi will be placed in. Due to this, the highest group tends to be high-performance models and will, therefore, cost the most to get insured. Ultimately, making it more difficult to find affordable taxi insurance.

It is important to consider other factors, such as fuel consumption, before choosing the right taxi that will meet your needs.

You may not be able to base your decision on vehicle type or its insurance group alone. However, it is a good idea to be aware of the various factors, which could help reduce your insurance premium.

Drive your vehicle with caution

The safer you drive, the less risk you will present to any company that offers taxi insurance. If you drive safely, you are less likely to be given any driving cautions, something which is not favoured by any insurance company. You might often be in a rush to get people to their destination, but you should not take risks and add points to your license in the process – this will almost certainly increase your insurance costs.

Driving safely will also allow you to build up your no claims bonus. The more years you have without a claim will give you an advantage, this will help you find cheaper taxi insurance when renewing.

Insure your taxi fleet under one policy

If you own two or more taxis, it is often more cost-effective to consider insuring them all using a taxi fleet insurance policy. This type of specialist taxi insurance puts all your taxis under one policy with one renewal date, making managing cover on your vehicles much easier and, importantly, saving you money.

What else do I need to consider?

Public liability insurance for taxi drivers

It is important you check with your insurance company that public liability cover is included within your taxi insurance policy. Often, it is included. However, under some circumstances, you may need to purchase it as an add–on. This cover will protect you and your customers in the event of an accident. They may pursue a claim against you and your business.

Without cover in place, as a taxi driver you may be required to pay out compensation, legal and medical costs, should you be held liable. These bills will be significant in most cases.

You can find out more about this specialist insurance by reading our online guide here.

Breakdown cover for your minicab

We know how important it is for your taxi to be on the road. It might be a good idea to check that breakdown cover is included within your policy. Not only will this help to reduce costs should your vehicle break down, but it will also ensure you’re back on the road as soon as possible, minimising loss of income.

Your location – The area you work in

The location in which you’re operating will affect your insurance premium. Some locations carry a higher risk – many providers exclude certain cities such as London and Ireland, and you will need to find a specialist company who will be able to insure you for that region. Utility Saving Expert can help you compare taxi insurance using our online quotation tool.

Loss of your license

What would happen if you were to lose your license? It may be impossible to consider this. However, mistakes and accidents do happen. In such a scenario, you wouldn’t be able to work and could, therefore, be out of pocket. It may be advisable to consider ‘loss of license’ insurance as an add-on to your insurance policy. This will compensate you for any loss of earnings.

It is important to recognise that these policies have many exclusions, so make sure you read the terms and conditions beforehand.

Onward transfer insurance for taxi drivers

This type of insurance will cover you and your passengers should your taxi break down whilst on route. It will provide onward transport for your passengers, so they can continue with their journey.

Legal assistance in conjunction with taxi insurance

Legal assistance will cover you against any legal expenses resulting from an accident that wasn’t your fault, should you make a claim against a third party. Legal expenses are often complex and very expensive. Although accidents may not often occur, it’s worth considering this as an addition to any insurance policy, rather than paying legal costs yourself should an incident occur.

Using your vehicle for personal use

This will provide cover should you wish to use your taxi for personal use. You should check with your insurance provider if this is included in your policy.

If you want to allow a third party to drive your taxi, perhaps a partner or your children, you will need to check with your local authority if they allow an unregistered motorist to drive a registered taxi. You can do this my contacting your local council offices.

Personal injury

Taxi driving carries more risks than standard driving, your chance of being involved in an accident or incident is a lot higher. It might, therefore, be a good idea to check if personal injury is included within your insurance policy. This will cover if you’re involved in an accident causing injury, or even death.

Windscreen cover

This is usually included in most insurance policies. Under some policies, you may be required to purchase it as an add-on. Check with your insurance provider beforehand.

Home start assistance combined with taxi insurance

This will provide cover if your taxi breaks down whilst it is at home.

Taxi modifications

If your taxi has certain modifications, such as disabled access, often, your insurance premium can increase. However, it is important you declare these modifications. Failure to do so could invalidate your insurance policy, meaning you will not be able to make a successful claim in the future.

Compare cheap taxi insurance

You should now have all the necessary information you need to help you choose the correct level of cover for your taxi insurance. Use Utility Saving Expert’s online quotation tool to help you find the cheapest insurance available.

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