As with any motorist, taxi insurance becomes more expensive if a driver has motoring convictions or has made a claim.
Because taxi drivers spend more time on the road, they are considered greater risk by insurance companies and their public hire insurance and private hire insurance premiums are higher than they would be for an ordinary driver with the same experience and driving record.
Generally speaking, drivers with no convictions on their licence and with no history of claims will be offered cheaper insurance premiums when it’s time to renew their taxi insurance policy. However, those with points on their licence or who have made claims – even if they were not at fault – can expect to pay more because insurers view them as higher risk and more likely to make a claim in future.
And it is easy to see why. Research by comparison site insuremystuff4less found that almost one in four – 24% – taxi drivers have made a claim in the past five years. That is quite a high proportion and demonstrates why insurers see taxi drivers, and other professional drivers who spend more time on the road, as higher risk than ordinary motorists.
And when it comes to convictions, the insurance comparison website found that speeding offences are the most common, accounting for almost 64% of all offences committed by taxi drivers. Time is money for taxi and private-hire drivers, but trying to get to or drop off a fare too quickly will cost them in the long run.
When insurers are looking at a taxi insurance proposal or renewal, they go back five years into a driver’s history and any convictions during that period can affect the level of premiums they will pay. This also applies to any pending conviction, that must also be disclosed. Even if they have not received points on their licence for a particular offence, they must declare it or they may find their insurance is invalid in the event of a claim.
This also applies to claims and convictions while driving any other vehicles, not just their cab or private hire vehicle. For example, failing to declare points issued for a speeding offence committed or a claim in their own non-taxi vehicle could make their taxi insurance invalid.
Insurers try to reward safe drivers with lower premiums and adequately cover themselves for drivers who are more likely to make a claim.
This is why they also want to know about any criminal convictions, especially fraud. Giving false or incomplete details may also invalidate a policy. While people might be tempted not to share details in the hope of cheaper premiums, taxi insurers look at the whole picture and may decide that certain declared convictions or claims do not affect a taxi insurance policy.
This does not mean that taxi drivers who have made claims or have convictions will face unaffordable premiums that could force them out of the trade. There are different ways taxi drivers can lower their premiums, and the key is to be honest about their driving record and to shop around.
And it is still possible they can still get a good deal on their taxi insurance, which is why it is worth using an expert taxi insurance brokers. Other steps that can help keep insurance premiums down include obtaining industry qualifications, as well as ensuring that all the terms of their licensing are up to date.
As drivers know, there are no set rates for taxi insurance. Insurers consider each policy individually and premiums vary, depending on the background and experience of the driver, the vehicle they use, as well as the location and the time of day they operate.
Those who work in busy city centres can expect to pay higher premiums than those who work in rural areas and drivers who work nights and at weekends are likely to pay more than those who operate during the day.
