Each insurance policy premium will be based on individual needs and circumstances; however there are a variety of different ways to help reduce taxi insurance premiums.
No Claims Discounts, also referred to as no claims bonuses, are one of the most effective ways to lower your insurance premium. If you have a proven record of not making claims insurance companies will offer generous discounts.
The amount of discount varies between insurance companies, so it is well worth getting more than one insurance quote to get the largest no claims discount you can.
Quite often any no claims discounts earned on a private motor car is transferable but not on a like for like basis. Speak with the insurance company to see what discounts they will transfer.
Having experience in taxi driving can also help reduce premiums. Proof of how much experience you have is usually linked to how many years you have held your local authority taxi badge. Inexperienced drivers can of course be insured but the premiums will be higher.
Big discounts can be given if the number of drivers is restricted on the policy. The biggest discount is given if the policy is purely for the owner-driver. Having named drivers is also an effective method of reducing premiums.
Policies which cover any driver are more expensive due to the higher risks to the insurance company. Taxi drivers who have no driving convictions or penalty points on their license may be able to negotiate a lower premium.
There are some very simple steps which can be considered to help reduce premiums further:
1. Having the amount of voluntary excess increased will provide a lower premium, but beware that if you make a claim it will be more expensive for you.
2. Some insurance companies will offer lower premiums if your taxi is kept in a garage rather than parked on a road when not in use.
3. Consider having Third Party Only insurance. This type of insurance cover meets the minimum legal requirements and is the cheapest level of insurance cover.
Probably the most effective way to lower the cost of taxi insurance is to search the market! This can be carried out by visiting insurance company offices or probably more effectively online.
Leave plenty of time to look for lower taxi insurance. Insurance companies will contact you just before your existing policy is due for renewal. Too many people take the easy option and renew with the same company, this may be a costly mistake to make.
Buying your taxi insurance online can often save you money. Most insurance companies offer a small saving for using their online services on top of any other discounts they may award.
If you are not up to searching online use an online taxi insurance broker to do the searching on your behalf to save time. Tell them you are looking for the most competitive quotes and inform them that you are shopping around.
You may be pleasantly surprised with some of the competitive offers and quotes they can come up with!
