If you’re a taxi driver your car is the cornerstone of your business, but with costs continuing to increase you may find that your margins are getting squeezed.
As well as the rising cost of tax and fuel, the cost of insurance is increasing too. There are various reasons why insurance has been increasing for taxi drivers, but it’s worth noting that insurance premiums have been increasing for everyone, not just for taxi drivers.
Thankfully, there are a few things that you can do which can see you lower your taxi insurance. Here are some top tips to take on board to help reduce your premiums.
Get the Correct Cover
When going through your insurance, the first thing you should look out for is cover. Checking whether you’re covered for everything that you need, as well as if you’re over-covered, is crucial. If you have cover that you don’t need you could be paying out more than you would if you took this off your insurance policy. You may want to consider using comparison sites like Quotezone, who allow you to compare quotes from a range of providers in order to find the best deal on your taxi insurance.
Check Your Excess
Another great way to save money on your taxi insurance is by checking your excess. In some cases, a higher excess may mean a smaller premium, however, this can prove to be a false saving, especially if you find yourself in an accident. The excess is the amount you’ll have to cover yourself if you ever have to make a claim.
It’s a bit of a balancing act, but by adjusting your excess to the highest amount you would be able to afford in the event of a claim you could reduce the upfront cost of your insurance.
Installing telematics in your taxi can not only save you cash, but your fuel too. Whether it be fitting a GPS tracker or camera in your vehicle, these can help lower your insurance. Staying safe on the road is important, so having the right equipment in place can be used as evidence should you experience any incidents. There are some telematic devices that can keep track of how you drive too, helping to improve your driving efficiency and reduce your fuel bill. As a taxi driver, having a clean driving record is vital. You will find that insurance companies see you as much less of a risk once they see you have no points or convictions on your record.
You may not realise it, but switching to an electric vehicle can be another great way to save you money. Because they’re cheaper to repair than the standard fuel types, this means that they can sometimes be cheaper to insure too.
While the electric car market is relatively new, many vehicles are travelling further than ever (all on a single charge). The cost recharging an electric car is also much cheaper than refuelling a diesel or petrol car.
Opt for a Named Driver Policy
If you have an ‘any driver’ policy in place this means that you will be allowing anyone to use your vehicle who is over the age of 21 or 25, meaning that insurers will see this as a higher risk.
While it might feel restrictive, opting to only insure named drivers will mean the level of insurance risk is reduced, meaning you may be offered a lower premium.
No Claims Bonus
Once you are the policyholder of your taxi insurance, you will be able to earn a no claims bonus. Taxi drivers will be rewarded with a no claims bonus as long as they haven’t had any accidents throughout the year. Over time, this can save you a significant amount of money.
Paying for your taxi insurance on a monthly basis may be more convenient, and it can also help you manage your cash flow a little better. However, monthly payment plans do come with a cost, so you’ll be able to save money on your insurance if you opt to pay annually instead.