Obtaining cheap insurance for private hire taxis

Taxi insurance is an essential purchase for any taxi driver as it protects against the risks involved with being self-employed, picking up passengers, and being on the road for long hours. However, although taxi insurance is important you shouldn’t be paying more than you have to. You need to keep fixed costs as low as possible, so finding cheap insurance for private hire taxis is a must.

Here are some top tips for obtaining a cheap quote.

Drive your own cab
This might seem like a no-brainer but the insurance company actually rewards the policyholder for driving their own vehicle. The logic behind this is that the owner of the car is more likely to maintain the car and drive it responsibly than an employee.

Third party cover
By law motorists only require third party insurance to drive on UK roads, but it is the lowest level of cover and therefore may not offer adequate protection. Despite being a cheap insurance for private hire policy, it is not recommended that taxi drivers seek this level of cover unless they already have an existing policy which protects against damage or of the vehicle.

Keep a clean driving licence
Annual taxi insurance premiums are based on the risk you pose to the insurer, therefore if you can prove that you are not a likely candidate to be involved in an accident, your premiums are lowered. By keeping a clean driving licence you are demonstrating that you are responsible driver, and will be a low threat to the insurer. If you have a history of being involved in accidents or making insurance claims, the insurance company will be more likely to hike up the cost of your insurance.

Keep your vehicle in a good condition
By keeping your private hire taxi maintained and well-kept, with regular services, you are less likely to become involved in an accident. This is because the driver is able to keep control and manoeuvre the vehicle whilst on the road.

If you are looking for cheap insurance for private hire taxis, remember that the lowest premium may not be the most suitable. It is more beneficial to try and reduce the cost of a comprehensive policy than settle for a basic level of cover.