As a taxi driver, your work means you’ve got a number of business expenses to budget for. For example, there is the vehicle, servicing, repairs, maintenance, road tax, insurance and fuel. Most of these will be fixed costs that can’t really be adjusted. However, private hire insurance can vary significantly in price. This gives you the opportunity to find cheaper cover when renewing your policy. To save money on your annual premium, check out the nine practical tips listed below:

Compare private hire insurance online

First and foremost, the best place to get cheaper private hire insurance is to use an online comparison site. These sites allow you to get quotes from multiple providers in one go. It will take you around 10 to 15 minutes to complete the form, allowing you to see prices from a whole range of leading taxi insurers. This will save you time from having to contact each company one after the next to get a single quote.

You will be asked about your vehicle make and model, how many miles you cover each year, the area you operate in, your age, driving history and any previous claims you have made. It’s important that you answer all questions accurately and honestly when purchasing cover. If you omit or falsify any information, your cover could be invalidated. This means that you will not be able to make a claim in the event of an accident. When comparing policies online, ensure you read the terms and conditions and are fully aware of any limitations and exclusions as not all policies are the same.

Build up your private hire no claims bonus

Anyone who is new to the taxi profession will likely have a much higher premium to begin with. Fortunately, if you drive safely and responsibly you will be able to build up your no-claims bonus. This will help you get cheaper private hire insurance in subsequent years when renewing your policy as you become an established driver. 

Start when you’re aged 25 or over

Similar to standard car cover, drivers that are aged 25 and over will be able to get a lower quote on their private hire insurance. This is because many insurers will see drivers at this age as being more mature and responsible behind the wheel in comparison to a 19-year-old. So, if you’re able to wait a few years before you start your taxi career, it’s definitely worth considering this. 

Report an accident or claim immediately

By reporting an accident or claim as soon as possible, you can reduce the cost of the claim and minimize the period of time it takes for your vehicle to be repaired or replaced. This will also mean your premium won’t increase by as much at the time of your renewal. More importantly, you’ll be back on the road in a shorter span of time, allowing you to continue making a living.

Make sure your private hire policy includes a free replacement vehicle

As a taxi driver, having a free replacement vehicle will be of utmost importance. This is because you cannot afford to be off the road for an extended period of time. After all, your vehicle is your business and no one wants to lose money by having to close down temporarily.

Policies that include replacement vehicles will ensure you’re able to continue transporting passengers while your main vehicle is undergoing repairs or is being assessed for replacement by the insurance company’s underwriting team.

Purchase breakdown cover for your taxi

Like any insurance policy, you will be offered a number of optional extras when buying private hire insurance. Make sure you have a breakdown policy as this will help you get back on the road if your vehicle experiences any faults. You should also be aware that you don’t actually have to buy breakdown cover as an extra within your cover, you can actually purchase it separately as this will likely save you money.

Pay for private hire cover in one lump sum

We realize this option won’t be suitable for everyone, but if you can afford to do so, it’s a good idea to pay for your private hire insurance cover in one lump sum. The reason for this is your insurer will offer you a discount for selecting this payment method. Compared to paying via monthly Direct Debit, you will save around 10-15% on the total premium.

Ensure your private hire vehicle is secure

Vehicle security should be a top priority for any taxi driver. Most vehicles have car alarms, but installing an immobilizer can also drive down your premium. Furthermore, you should park your vehicle in a safe location when it’s not in use as insurers will see this as a lower risk factor.

Telematics private hire taxi insurance

Telematics cover is another way to demonstrate to your insurer that you are a safe and responsible private hire taxi driver. A small device will be fitted in your car that monitors your driving behavior. If you can show that you take road safety seriously, insurance companies will reward you by lowering your annual premium cost.