Anyone in the taxi industry is bound to have been faced with price hikes over recent months. Whether it’s increasing fuel costs, higher badge and licencing costs or ever-rising insurance premiums it could be hard to stay on track, and many drivers have had to make some hard choices as to whether or not they can continue. So just why is insurance for taxis going up?
Unfortunately there’s no simple answer to this, as it seems to be the way the insurance industry in general is going. But, that doesn’t mean it hasn’t taken its toll—even people who have a flawless driving record have seen their premiums rise by as much as 40%, and that’s a huge amount of cash to have to part with when you’re not actually getting a better service. Then there’s the fact that taxi drivers are deemed to be a higher insurance risk than regular drivers—they’ll be on the road far more than most people and as such are statistically more likely to make a claim, putting them straight in the high risk category and pushing up the cost of insurance accordingly. Taxis are more likely to suffer from accidents as well as general wear and tear, and the fact that you’re dealing with members of the public means you’ll need a decent level of liability insurance in place as well.
There are several factors that come into play to determine the cost of insurance, but despite the fact that insurance premiums are on the rise it doesn’t mean you need to spend a fortune. Or at least, you don’t if you make sure to choose your policy wisely. Always spend the time to research the area if you want to get the best deals, and comparing the options is vital. Be on the lookout for any added discounts too because that can be a great way to reduce your premiums—think no claims bonuses, new policy discounts and even discounts for arranging things online, and you could soon get the cost down to something more manageable. Know what to look out for and you’ll be able to lessen the impact of the price hike, giving you the insurance you need at a price you can afford.