Taxi Insurance

Taxi insurance tends to be more expensive than conventional car insurance policies due to the increased statistical risk of accidents occurring due to the increased number of miles being covered.

MoneySupermarket has teamed up with Cabshield so that taxi drivers can find the most competitive taxi insurance quotes available. Drivers can compare quotes from 15 different taxi schemes to find the most cost-effective insurance to suit their needs. 

Why is taxi insurance so expensive?

Taxi drivers usually drive many more miles than most motorists, and often use larger vehicles than standard cars to accommodate a higher number of passengers. This places them in a higher car insurance category, and means that premiums are generally much more expensive than those standard drivers have to pay.

Following the introduction of the Continuous Insurance Enforcement (CIE) Regulations, it is now an offence to keep any vehicle without insurance unless the DVLA has been notified that the vehicle is being kept off the road, so cover is vital for all taxi drivers even those who only work occasionally.

Types of taxi insurance policies

There are 2 types of insurance specifically for taxi drivers.

First, there is Private Hire Taxi Insurance, also referred to as minicab insurance, which applies to cars that are restricted to pre-booking only. These vehicles are not allowed to have the 'Taxi' sign on top of their vehicle and cannot use taxi ranks.

Public Hire Taxi Insurance, however, relates to vehicles which are licensed to collect passengers at the side of the road, and which usually have a 'Taxi' sign on top of their vehicle.

Drivers can either buy taxi insurance just for themselves as a named driver, or they can buy an 'any driver' policy.

As the name suggests, an 'any driver' policy means that anyone is insured to drive your taxi. This is the most expensive form of cover as the more names added, the more expensive the policy tends to be.

Find cheap taxi insurance quotes

There are several steps taxi drivers can take to benefit from cheaper premiums:

First, opt for a vehicle in the lowest car insurance group possible. Insurance groups range from 1-50 and the lower the group the lower the insurance cost, the higher the group the higher the insurance cost. Cars in the highest groups are usually high performance models which are cost the most in insurance claims.

Car insurance groups are set by the Group Rating Panel, which includes members of the Association of British Insurers (ABI) and Lloyds Market Association (LMA). Most of the information used by the panel in its assessment is based on research conducted by the Motor Insurance Repair Research Centre (Thatcham), so you can check the Thatcham website to find out which group any car you are considering has been assigned to.

Try to avoid any driving convictions as these will substantially boost the cost of your insurance premiums.

You should also build up your no claims discount for as long as possible, as having a claim-free driving record will normally entitle you to a discount. Insurers will also usually offer cheaper premiums to those who have held their taxi badge for longer.

What else to consider

Taxi drivers should also consider purchasing taxi breakdown down due to their excessive mileage. In addition, taxi drivers should think about public liability insurance as they will be transporting members of the public and should therefore be covered in the event of injury claims.