UK taxi insurance, how to reduce the costs

Taxi owners may have one taxi to insure or they may have several taxis but because taxis are on the roads much more often than other types of vehicles, insuring them can turn out to be expensive. Even so, taxi owners do not have to accept the most expensive insurance policy they are offered if they take certain actions that will help to lower their premiums.

Transfer the No Claims Bonus

As people earn their no claims bonuses on their family cars, they can transfer them from their previous car insurance companies to their new companies. They can receive discounts on their private car insurance premiums by 20 percent to 60 percent if they do this.

Some taxi insurance companies will accept a no claims bonus transfer that has been earned on a private vehicle. People looking for the most affordable cover will only need to ask their taxi insurance companies if they accept private vehicle no claims bonuses before they purchase the policy.

How long have you been driving a Taxi?

The length of time that people have been driving their taxis can be the difference between lower and higher premiums. Those who can demonstrate that they have been driving their taxis for a significantly long period of time have the experience that causes insurance companies to charge lower premiums. The most common way of proving the length of time they have been driving is by showing how long they have been in possession of their local authority taxi badges.

Limit the Names on the Policy

When there are several names on a taxi insurance policy, it increases the risks for the insurance company. If the company keeps the names of its drivers to a minimum, the risk will be spread out amongst fewer people and the insurance company will quote a lower price. The biggest discount will be given to the policyholder who only lists his name on the policy.

Make the Best Choices for the Drivers Named on the Policy

If people take the advice of the above suggestion, they will not see a reduction in their premiums if they name the wrong people. These people would be any driver under the age of 25 who is considered by insurance companies to be a high risk. The other high risk that would not encourage lower premiums would be drivers with poor driving records. They are raising the risk that the owner will need to file a claim, so the premiums will be higher.

Add Voluntary Excess

In most cases, UK taxi policies will require that taxi owners accept a compulsory excess in the amount of 250 pounds. To help lower their insurance premiums, they can offer to pay much more than 250 pounds for their excess. In order for this strategy to work, taxi owners must be able to comfortably pay the excess if they ever need to file a claim.

Consider Fleet Insurance

If a taxi company has more than one taxi to insure, doing so on an individual basis would make the policies very costly. They can lower the cost of insuring several taxis by purchasing fleet insurance. In order to qualify for a fleet policy, taxi owners may need to have at least four taxis to insure.

Purchase Taxi Insurance Online

People who need to purchase UK taxi insurance will receive benefits if they do this online. They may open an account on the insurance company’s website and be entitled to receive a discount on their insurance policies for doing so.

Install Anti-Theft Devices

By preventing the possibility of the taxis being stolen, the possibility of needing to file a claim to have the vehicle replaced goes down. By decreasing the risk of theft, the amount of the premiums also decline.

Copyright Carol Glaver 2011 All Rights Reserved