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taxi insurance Ultimate Guide to Cheap Taxi Insurance

Finding affordable is extremely important for any taxi cab driver, especially on a self-employed basis. 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 taxi insurance policy in place for all possible outcomes.

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

Being a taxi driver may sometimes be frustrating under certain conditions. You could be in a traffic jams, 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 taxi insurance.

Although taxi insurance is generally more expensive compared to standard insurance, we’ll help you take the necessary steps to make sure your minicab insurance policy is as cheap as possible.

Taxi Insurance – Why isn’t it 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 taxi insurance premium.

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Taxi Insurance – Why do I need it?

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 taxi insurance cover in place.

Taxi Insurance – What type will I 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.

Taxi insurance may also be referred to as the following:

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

Private hire taxi 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 taxi insurance.

Public hire cab 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 that would be classed as public hire taxis are 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 public hire taxi insurance.

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

Policy only minicab insurance

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 taxi insurance

This is the most expensive type of taxi cover available. 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.

Taxi Insurance – How to save money

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 taxis

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 taxi insurance deals

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

Choose a low-cost vehicle as a taxi cab

There are more than 50 insurance group and the highest will attract the most expensive minicab 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 cheap 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 taxi insurance premium.

Drive your taxi 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 favored 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 taxi 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.

Taxi Insurance – 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. Public liability insurance will protect you and your customers in the event of an accident. They may pursue a claim against you and your business.

Without public liability insurance 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 public liability 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, it will also ensure you’re back on the road as soon as possible, minimising loss of income.

Your Location – The area you provide Taxi services

The location in which you’re operating will affect your taxi 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 comparison tool.

Loss of your Taxi 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 taxi 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 taxi insurance policy, rather than paying legal costs yourself should an incident occur.

Using your Taxi Cab for Personal Use

This will provide cover should you wish to use your taxi for personal use. You should check with your taxi 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 taxi 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 minicab 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 taxi insurance policy, meaning you will not be able to make a successful claim in the future.

Compare 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 comparison tool to help you find cheaper taxi insurance.

Taxi Insurance

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Taxi Insurance Disclaimer

Utilitysavingexpert.com Ltd uses taxi insurance quotation technology provided by SEOPA Ltd to enable you, the user to obtain multiple taxi insurance quotes. These taxi insurance quotes are sourced from a carefully selected panel of taxi insurance providers. SEOPA Ltd are authorised and regulated by the financial conduct authority (313860) and their permitted business is insurance mediation.

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