Kompare

Taxi

Ways to save money on your insurance as a taxi or private hire driver

General ways taxi and private hire drivers may lower the cost of their insurance, from a clean record and security to excess, payment and policy choices.

If taxi or private hire work is your livelihood, you already know that you need the right insurance to work. It can be one of your biggest running costs, and it isn't something to skimp on: driving without the correct cover can lead to prosecution, a fine, penalty points and disqualification. You can read more about the rules on GOV.UK.

Finding a fair price shouldn't be hard work. Here are some general tips that may help.

Drive carefully and keep your record clean

It sounds obvious, but a licence with no points or convictions makes a real difference. Insurers see drivers with a clean record as a lower risk, which usually means lower premiums.

Getting passengers to their destination on time is part of the job, but taking risks to get them there faster can lead to incidents and claims, which push the cost up. The more carefully you drive, the fewer risks you face. Insurers want to see a long period of driving without incidents.

Bundle your policies

There is a long list of additional cover you might take out as a taxi or private hire driver, including:

  • breakdown cover
  • windscreen repair
  • legal expenses cover
  • public liability
  • loss of earnings or loss of licence cover
  • a replacement vehicle

Taking these out separately with different providers can become confusing. Arranging them together means fewer payments and renewal dates to keep track of, and it can sometimes cost less overall.

Secure your vehicle

If you work day and night in your cab, you want to protect it. Insurers look favourably on vehicles that are kept secure, as they are less likely to be damaged or stolen. Telling your insurer that the vehicle is kept somewhere safe overnight may help with the price.

Security devices such as alarms, immobilisers, trackers and cameras may also help lower your premium. If you are thinking of having something fitted, check with your insurer first which devices they recognise.

Be careful with any driver policies

An any driver clause lets other people drive your vehicle. Insurers see this as a higher risk, because they don't know the driving history of everyone who might get behind the wheel, so the price is usually higher.

If you do need another driver on the policy, it makes sense to know them well and to check their licence is clean. If you don't need another driver, a policy in your name only is usually simpler and cheaper.

Look at specialist cover

Taxi and private hire insurance is a specialist product, so it is worth speaking to someone who knows it well. With Kompare, you fill in a short form and a specialist broker from our panel contacts you to talk through quotes. You can find out more on our taxi insurance page and see how we work.

Reconsider your excess

A higher excess often means a lower premium, but you will have to pay that excess yourself if you claim. If you choose a higher excess, make sure it is an amount you could afford to pay.

Pay in one go if you can

Many drivers pay monthly to spread the cost. The downside is that monthly plans often include interest, so the total is usually higher than paying for the year upfront. If you are able to pay annually, it may work out cheaper.

Ever thought about an electric taxi?

Electric vehicles may be worth considering. Depending on the model, an electric taxi can sometimes be cheaper to insure than a petrol or diesel equivalent, and some insurers offer discounts to encourage the switch. Prices vary a great deal by vehicle, so check before you buy.

Put a black box in your cab

A telematics device, or black box, records how you drive, including your speed, braking and the times you are on the road. Some insurers use this to reward careful drivers with lower premiums, and a good record may help when renewal comes round. Many devices also use GPS, which can help if the vehicle is stolen.

If you would like to talk to someone about your cover, you can contact us.