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taxi insurance Ultimate Guide to Taxi Insurance

If you are a taxi cab driver, especially on a self-employed basis, you will know that your vehicle isn’t just your job, it’s your livelihood. Without it, you would have no means to make a living, pay important bills or even put food on the table. You will therefore want to know your vehicle is insured as a minicab for eventualities, whatever the cost.

Despite its importance, taxi insurance doesn’t come without its added frustrations. Here at Utility Saving Expert, we like to be open and honest with our customers. This means we won’t waste our time sugar coating the fact, that unfortunately taxi cover can be relatively more costly than standard vehicle insurance.

Being a taxi driver can be frustrating enough on its own accord. You might constantly be stuck in traffic jams, be held up on time constraining journeys at traffic lights whilst pedestrians cross the road, or even have to deal with unpleasant customers. But all is not lost. Utility Saving Expert recognises your frustrations, and this is why we’ve created an ultimate guide to taxi insurance.

Although we cannot change the fact that taxi insurance is generally more expensive, we can help you recognize the steps you could take to make sure your policy has the lowest premium possible. Surely this is a positive, right? Read our online guide, and hopefully the answer to that question will be a big fat yes!

In this guide we will cover a number of topics relating to taxi insurance, including:

    Why is taxi insurance considerably more expensive?

    Before we dive into the main elements of taxi insurance, we thought it would be better to help tackle the question you probably want the answer to the most – why is taxi insurance so expensive?

    The reality is, taxi driving involves much more risk.

    Not only is your mileage likely to be higher than that of a standard driver, you’re more likely to be driving in unsociable hours, perhaps late at night where visibility is much less clearer.

    You’re also more likely to be expected to drive within busier environments, perhaps built up inner city areas where demand is high for a lift home from a music event or nightclub.

    You might be called to frequent holiday runs to busy airports or railway stations. And in the most extreme circumstances, you may have a time limit in which you need to reach a destination, perhaps your passenger is on the verge of giving birth!

    It is fair to say that your average daily driving experience is likely to be more eventful and riskier than that of a usual driver. Unfortunately, this increased risk whilst driving will be reflected within your taxi insurance premium.

    You might be wanting to pull your hair out right now. But we promise, if you continue reading this guide, your life might be made that little easier to manage.


    Why do I need taxi insurance?

    The bottom line is, taxi insurance is required by law.

    Without the right insurance in place, you are considered to be putting yourself and others at risk, and with this carries great consequences.

    You could potentially lose your license, and therefore your business, not something worth risking in any situation!

    What type taxi insurance will I need?

    Like standard car insurance policies, you will be able to choose from the three main levels of coverage, these being third party only, third party fire and theft and comprehensive.

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

    This type of specialist insurance also goes by many names such as:

    1. Taxi Insurance
    2. Minicab Insurance
    3. Cab Insurance
    4. Taxi Cab Insurance

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

    Private hire taxi insurance

    Private hire taxis are the type of taxi that cannot pull over for customers who are flagging them down. Instead, private hire taxis must be pre-booked and because of this, they are unable to display a taxi sign. For such a vehicle, you will need to take out specific private hire insurance.

    Public hire cab insurance

    Unlike private hire taxis, public hire taxis can stop for people flagging them down on the street, so 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. As they can pick customers up at random from the street, the insurance needed will be different to that of a private hire taxi and you will need to take out public hire taxi insurance.
    There are other specific taxi insurance requirements you may need to consider, dependent on your individual circumstances.

    Policy only minicab insurance

    This is the cheapest and most basic form of insurance cover. It is important to recognize that by adding more names to the policy, you will increase premium costs rather than reduce it.

    Named driver cab insurance

    This type of policy is mainly for taxi drivers who only wish to insure themselves and nobody else. Self-employed ‘one-man band’ taxi drivers will usually use this policy, if they own a single taxi and are the sole driver.

    Any driver taxi insurance

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


    How can I save money on taxi insurance?

    As taxi insurance is so expensive, we understand the important of trying to cut your premium costs as much as possible. Here are a few tips on how to keep your premium within your budget:

    Improve the security of your taxis

    Insurance companies will favor vehicles that are kept secure, as they carry less of a risk of being damaged or stolen. By keeping your vehicle in a safe and secure place at night, perhaps in a garage, or on a private driveway behind locked gates, your premium should reduce significantly. You could also invest in an immobiliser, CCTV or dash cam, which will help reduce the chance of your vehicle being targeted by thieves.

    Shop around for the best taxi insurance

    Make sure you thorough search for the right insurance policy and don’t go for the first one you see. It may seem like a good deal, but there could be better if you look hard enough. Utility Saving Expert can help with this, head over to our online taxi insurance comparison tool and we can compare the best taxi insurance quoted for you today.

    Choose a low-cost vehicle as a taxi cab

    It is worth noting that there are 50 insurance group and the highest will attract the most expensive insurance premiums. For this reason, you should try to consider choosing a vehicle within the lower categories, which will in turn bring your insurance premiums down.

    Factors such as safety features, the cost of spare parts, value of the vehicle and repairs determine which group a vehicle will be placed. Due to this, the highest group tend to be high-performance models and therefore cost the most to get insured.

    It is important you also consider other important factors, such as fuel consumption, before choosing the correct vehicle to suit your needs.

    You may not be able to base your decision on vehicle type on its insurance group alone, however it is a good idea to be aware of this factor along as many others, which could help reduce your premium.

    Drive your taxi with caution

    The safer you drive, the less risk you will present to your insurance companies. If you drive safely, you are also 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 risk having points on your license in the process – something which will almost certainly drive up your insurance costs.
    Driving safely will also allow you to build up your no claims bonus. The more years you have without a claim, the cheaper your insurance.

    What other things will I need to consider?

    Public liability insurance for taxi drivers

    It is important you check with your insurance company that public liability is included in your policy. Often, it is included, however in certain circumstances you may need to purchase it as an add – on. Public liability insurance will protect you and your customers in the event they have an accident which they claim is your businesses fault.

    Without public liability insurance, as a taxi driver you could be facing hefty compensation, legal and medical costs, should you be held liable.

    You can find out more on public liability insurance by reading our online guide here

    Breakdown cover for your minicab

    We know how important it is for your vehicle to be on the road, as without it, you cannot earn a living. Therefore, it might be a good idea to check that breakdown cover is part of your policy. Not only will this help to reduce costs should your vehicle break down, it will also ensure your back on the road as quickly as possible without losing valuable fare-earning time.

    Your Location

    The location in which your operating will affect your premium as certain 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 can insure you for that region. Utility saving expert can help you compare prices via the online tool here.

    Loss of license

    What would happen should you lose your license? It might be impossible to think about; 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 might therefore be a good idea to take out loss of license insurance as an add on to your policy to compensate you for any loss of earnings. It is important to recognise that these policies do have many exclusions, so be careful to read the terms and conditions beforehand.

    Onward transfer insurance

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

    Legal assistance

    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 sure to burn a hole in your pocket, and although accidents may be few and far between, it might be better to pay the cost to add this to your premium than to fork out for legal expenses, should such a scenario occur.


    Using your Taxi cab for personal use

    This will cover you should you wish to use your taxi for personal use. You should check with your insurance provider if this is included in your policy.
    It is important to recognise that should you wish to allow other people the ability to drive your taxi, perhaps a partner or children, you will have to check with your local authority if they allow an unregistered motorist to drive a registered taxi. You can do this my calling your local council offices.

    Personal Injury

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

    Windscreen cover

    This is usually included in most policies but may be required to be purchased as an add-on to your policy. Check with your insurance provider beforehand.

    Home start assistance

    This will provide cover should your taxi break down whilst it is at home.

    Taxi modifications

    If your taxi has certain modifications, such as disabled access, often, your insurance premiums can increase. However, it is important you declare these modifications, as if you don’t, you could make your insurance policy invalid meaning you will not be able to make a successful claim in the future, should you need to.

    Now you should hopefully have all the information you need to assist you in choosing the correct level of cover for you taxi insurance. Why not head over to Utility Saving Experts online taxi insurance comparison tool to help you find the best deals to suit your needs.