If you take a few steps, you can lower the cost of taxi insurance. This is one cost of driving that you can reduce if you drive for a company or as an independent driver to earn an income. You will have to prove that you are a qualified driver before you can get this type of insurance.
- No Claims Bonus, or NCD in Action: Every provider of taxi insurance will want to know if you are eligible for a no-claims discount qualification. This means that there has not been a claim on an active taxi policy for at least four years. Drivers with a less extensive claims history will see a pro-rate reduction of the discount. According to industry figures, the no claims discount can reduce the premium you pay to the provider by between 20% and 60%. Some drivers have a good track record of driving privately. The provider might be willing to lower the premium. However, you can’t expect a similar-to-like transition. Driving a taxi commercially is a different experience than other types of driving.
- Taxi drivers who have been driving for some time will likely get a discount. This is because you are more familiar with the roads than someone who has just started driving. Complex situations will not be complicated and you won’t get nervous. This theory may be proven false in certain cases. If you have evidence that your driver skills are high, you may be able to get a discount on your taxi insurance premium. This is the only piece of evidence that the provider accepts before you get a discount under the scheme. If you are driving illegally or in violation of local licensing rules, there is no discount. If you break one rule, then it is assumed that you can also break other rules to lower your taxi insurance premium. This is similar to when you are convicted of a crime and it comes out during the application process.
- Don’t let anyone drive your taxi. Taxi insurance companies are looking to offer discounts for accounts that only permit a small number of drivers. The premium will drop if the group has a good record. It is best to limit driving to one person. Driver unions and cooperatives believe that one car can be used for multiple drivers, as long as each driver is qualified. The actual impact on premiums you pay is not clear. You should ensure that only approved drivers are permitted to be near the vehicle.
- You have the option to voluntarily contribute to the cost of taxi insurance premiums. There are many excess figures that you can consider. If you have a high excess, the cost of your taxi insurance premium may be reduced up to 5%. To find out where you stand, do the calculation.
Your negotiation skills and the vehicle you propose to use will determine the final premium. Before the provider approves your package, they will review your driving records and personal history. Before you can be offered coverage, you must be able to follow all of the required steps.
