8 Ways to Save Money on Private Hire Taxi Insurance

Anyone who drives a taxi for their work will require adequate private hire insurance. A standard car insurance policy won’t provide the necessary cover for this type of work, especially if you’re taking passengers from one location to the next for profit. For this specific reason you’ll need PHV insurance to protect you against all the daily risks you face as a driver. These risks include but are not limited to breakdowns, collisions and third-party liability claims.

Sufficient taxi insurance cover can be prohibitively expense, especially for new drivers who must also factor in the costs of fuel, road tax and the actual vehicle itself, and no one looks forward to receiving eye watering renewal prices. Fortunately, there are ways to cut the costs of private hire insurance. We have listed some of the most popular ways to do this below.

Buy the right private hire cover

To start with, you must check that your taxi insurance policy offers the type and level of cover you actually need. The policy should not include a long list of optional extras that you are simply not going to make use of.

For example, when you check your policy documents, you may find that you’re paying extra for European cover. Most taxi drivers will not be leaving the UK and taking their car overseas. Breakdown cover is another common add on to find included within your policy, while this is extremely useful, you may actually find that you already have this type of cover provided through your bank or building society if you are already paying them a monthly fee for the account.

Increase your voluntary excess

One of the other proactive ways you can reduce your annual private hire insurance premium is to review and alter your excess. If you’re comfortable with selecting a higher voluntary excess, this could result in a lower premium. However, it is worth noting that should you be involved in an accident and have to pursue a claim, you will be expected to pay this increased amount.

Raising your voluntary excess can help you save money on your taxi insurance. There is some level of risk involved, so consider how likely you are to pursue a claim.

Purchase an electric vehicle

Electric cars can in some cases be cheaper to insure in comparison to a petrol or diesel counterpart. This is primarily because of the horsepower these electric vehicles have at their disposal.

Most electric cars will have less powerful engines when compared to a petrol or diesel model. Normally, vehicles with engines that aren’t as powerful are cheaper to insure. Although, it is worth noting that the initial outlay may be much higher, but this will also be offset by not having to pay for high fuel prices.

Furthermore, some insurance companies are offering motorists a small discount on their premium if they have an electric car. This discount is intended to convince more drivers to make the switch to electric, ultimately reducing carbon emissions in the years to come.

Telematics

Telematics, sometimes referred to as ‘black box cover’ is another way you could save money on your private hire insurance. Additionally, this type of policy can also help you improve your driving and even lower your fuel costs.

Drivers can receive a discount on telematics insurance as these tracking devices will monitor your behaviour behind the wheel. The device will track things like your average speed, breaking, turning and the time of day you use your vehicle.

This type of policy will be available to anyone, but is particularly suited to younger or inexperienced drivers, as the real-time driving tips can help them improve their driving.

Be a named driver

Having an ‘any driver’ policy certainly provides greater flexibility and scalability to smaller and medium sized taxi companies. However, this will unfortunately mean your yearly premium price will increase dramatically.

Insurers are in a better position to assess the level of risk for both the driver and the vehicle if driver names are included on the policy. This means you could be offered cheaper cover, especially if you’re naming safe and responsible taxi drivers. Named drivers that have built up a no claims discount can make a significant impact to the total price of your insurance.

Have a clean driving record

It shouldn’t come as a surprise that if you have a clean driving record, you will be offered cheaper taxi insurance. Those that have been driving for multiple years and have not been involved in any accidents or broken any laws will be looked favourably upon by insurance providers. Safe and responsible drivers are viewed as being a much lower risk, especially compared to motorists who have driving convictions and penalty points on their license. Having a clean driving record certainly pays off in the long run.

Compare quotes online

Every tip we have listed so far will certainly help you reduce your annual premium. Nonetheless, nothing will make a bigger difference to the cost than comparing taxi insurance quotes online. Utility Saving Expert can easily help you compare a whole range of leading industry providers in minutes. Even if you’re looking for cheap Uber insurance, we’ve got you covered.

Comparing quotes is easy and straightforward, simply complete one short quote form to see prices from various insurers. You can even adjust the level of excess and add and remove optional extras to see how the total price differs.

Pay annually

The majority of taxi drivers will opt to pay for their private hire insurance through regular monthly instalments. Although this does enable you to better manage your finances and divide the cost into equal monthly payments, you will usually end up paying more through this method. This is because monthly instalment plans will include interest that is added on top, you will normally end up paying about one to two extra months in total over the course of the year.

If you have the means, paying in full will actually work out to be cheaper. It may seem like a larger cost initially, but you will in fact save money compared to paying through monthly instalments.

To summarise, all of the above tips can help you save money on private hire insurance. If you’re able to combine more than one of these, you will be able to save a greater amount.