There are many ways to obtain cheaper taxi insurance, such as a number of small tips which can all help minimise the risk or usual insurance costs. Insurance is needed for the use of any vehicle on a public road.
As taxis are generally mobile more so than other road users, they are therefore put in the high risk category as they are more prone or more likely to be in accidents.
The first way to reduce the cost of a policy is to view the compulsory excess. This is a cost which an insurer asks you to pay should you claim. You can offset the annual premium by opting to pay more voluntary excess. This, on top of compulsory, is an additional payment should a claim be filed. It can help reduce the overall cost of the premium and provide you with cheaper insurance.
Unfortunately, getting cheaper taxi insurance needs some initial investment. Making the vehicle highly secure and a deterrent to thieves is high on the list for lowering the overall premium price. A Thatcham alarm and a highly visible steering lock can give insurers peace of mind they might not have to pay out for vehicle theft.
Being in the high risk category, taxi drivers need to reduce other risky factors. If there are multiple drivers, try to make sure under 25 year old drivers are not on insured on the same car, as they tend to increase the rate. Single male drivers are statistically more likely to have an accident, in the eyes of insurance companies.
The key to cheaper taxi insurance really focuses on the monthly payment factor. Although taxi drivers pay more for their premium, the best way to reduce unnecessary costs is to pay upfront for the year.
This way does not incur the charges associated with monthly payments. Sometimes credit cards can give 12 months interest free, which can be a way of paying monthly still but without any extra fees.
Reducing the outgoings in any business is vital for success. Choosing cheaper taxi insurance and shopping around for the best quotes is only one solution.
By Marissa Oldman