Everybody likes to save money if they can, especially when it comes to insurance. As a taxi driver, after the cost of purchasing or renting your vehicle, your insurance is probably your biggest expense. You may think that affordable insurance is hard to find, but with the right tips and techniques, reducing your taxi insurance premiums is easy.
1. Choose your car wisely
Before you even begin to think about insurance, first you have to decide on the right car. With 50 different insurance groups that your car could sit in, it’s a good idea to select your vehicle carefully. Though you also want to take into account other factors such as passenger capacity, mileage and fuel efficiency, it’s important to select a vehicle that won’t fall into a higher insurance group if you can as this is a key factor insurers will look at when underwriting a policy.
FACT: CoverMy Cab offers policies to cover vehicles in all vehicle groups but groups over 30 will have significantly higher premiums, vehicles under group 20 are deemed to be lower risk
You can find out your vehicle insurance group by visiting the Thatcham website at https://www.thatcham.org/myvehicle/search
2. Restricting the drivers on your policy
You can choose to insure your vehicle with a number of additional drivers but a policy can become much cheaper if you insure it just for yourself to drive Adding additional drivers will cost you, sometimes up to an additional 50% of the premium. Insurers will normally look at each driver on the policy separately and provide a quote based on the highest rate of each. If you restrict the number of drivers registered to a vehicle, then your premium can be lowered significantly with CoverMy Cab.
3. Using your no claims bonus
Driving carefully is the most rewarding way to save money on your insurance premiums. Safe drivers can get money off their policies by transferring an existing no claims bonus from another insurer, or by accumulating a no claims bonus over time which can then be used to make your insurance lower at renewal . Once you have built up a number of years no claims bonus you can choose to protect this for an additional premium, this means you will not lose your bonus in the event of a claim. No claims bonuses can be used on both public and private hire taxi policies. CoverMy Cab also provides introductory discounts for drivers with no claims bonus on a private car policy or proven taxi fleet experience.
FACT: Although many insurers only offer policies for those aged 25 or older, CoverMy Cab can offer policies to drivers as young as 21.
4. Choosing voluntary excess
Choosing to increase your excess can significantly lower your premium. Many policies come with a compulsory excess of between £350 and £600, but if you choose to raise that amount then you can benefit from paying a lower yearly premium. However, if you do have to make a claim then you’ll be paying that extra amount, so be careful.
5. Securing your vehicle
Actively taking steps to keep your vehicle safe will reward you when it comes to your insurance premium. Choosing a vehicle with a high security and EuroNCAP rating from Thatcham can automatically make your taxi safer, and keeping valuable items such as Sat Navs, mobiles and cash bags out of view can reduce the incidence of theft or attempted theft claims and drastically reduce the price of your premiums. Other steps you can take include keeping the vehicle off the road when not in use and providing secure overnight parking such as a garage, locked compound or gated drive. Some insurers will require high value vehicles to be fitted with an approved tracking device before offering a rate.
Many people pay much more for their insurance premiums than they should. By taking a few extra steps in the search for your policy and being sensible on the roads, you’ll soon find the cost of your premiums dropping. We can provide you with a comprehensive policy at a competitive price, so contact CoverMy Cab today for a quote on your new policy.