When you drive a taxi, black cab, taxi-bus, minicab or even a people carrier to ferry people around, you might be surprised how much it costs for insurance. There are many different factors that change what the policy will cost each year. Some of these include whether the vehicle was bought in the UK or imported, if it has been modified after-market, and how old it is.
It’s certainly true that a vehicle for commercial use is typically several times more expensive to insure than one for personal use – even if it’s the same make and model. This is because the miles will add up quickly, and with excess miles compared to a car for residential use, more wear and tear is added along with an increased risk of an accident or something going wrong.
Let’s now look at some of the factors to consider with taxi insurance.
Failing to Get a Competitive Quote
Whilst the city or town that you’ll mostly be operating in does affect a quote (London is a higher risk city for driving, for example), just as important with taxi insurance is seeking price quotes from more than one insurer.
Obtaining an insurance quote exposes you to the way an insurance company prices their policies. They each consider different variables and determine what the risks are with a given policy. Because of this, they arrive independently at what they wish to charge you for that coverage. The price reflects their opinion on the balance of risks, the likelihood of a claim, its frequency and assessed value versus the premium charged.
If you get quotes from Quotezone.co.uk, you can ensure that the prices provided by the insurance companies are in-line with your individual circumstances. They can put you in touch with different providers who will try to provide the best price possible for you and a policy that meets your specific needs.
What are the Main Differences Between Car Insurance and Taxi Car Insurance?
A private hire vehicle is used for different types of journeys. Ultimately, the miles rack up with private hire whether it’s many short journeys during the day or a single extended one.
The vehicle is often classified in commercial terms as a “hire and reward” one. This requires coverage for any accidents or other happenings relating to the vehicle while it’s being used for commercial purposes.
It’s worth bearing in mind that should you decide to use your vehicle as a taxi without getting the appropriate commercial insurance, then in the event of an accident, you won’t be covered. Also, doing so will break the terms of your car insurance policy too. So, don’t risk it and hope you won’t get into an accident. With the advent of Uber and the like, this point shouldn’t be overlooked.
Types of Taxi Insurance Available
Much like with regular car insurance, the type of cover is familiar:
- Full comprehensive
- Third party, fire and theft
- Third party only
These are in order of price. Third party is the least expensive option and the one necessary to drive on UK roads in a commercial taxi. It is also the most limited in terms of coverage.
Taxi Insurance for People in their Teens or Early Twenties
As is the case with regular car insurance, younger drivers tend to be at a greater risk of having an accident. This is partly the overexuberance of youth and a lack of experience driving on UK roads too.
Around the age of 25 is where this is no longer a factor. If you’re near this age limit, it might still be possible to get insurance for a vehicle used as a taxi. However, it would be helpful if you’ve held a valid driving license for several years already without any prior history of accidents to look like a less risky driver.
You can expect the cost of insurance to be substantially higher the younger you are. While taxi insurance is often 2-4 times more than when the same vehicle is used only for residential use, for younger drivers it’s likely to be on the upper end or higher still.
Can I Be a Taxi Driver if I Am a New Driver?
Getting insurance as someone who’s only recently passed their UK driving test is perhaps the toughest ask of all. Let’s face it, the least experienced driver on the road is likely to be costly to insure because their inexperience often causes additional accidents. Sad, but true.
You will need to have a solid year of driving on British roads under your belt before you can get insurance for commercial use to operate as a taxi. Focus on getting the first year of driving completed without incident before looking to be a taxi driver.
With taxi insurance, being a desirable insurance customer by having spent time on the road, being a little older, and sourcing a competitive quote, all factor into getting value for money. This way, you can find more affordable cover.