Reducing premiums for drivers with claims

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Taxi insurance becomes more expensive for drivers with motoring convictions or who have made a claim – but shopping around for the right vehicle can help bring down premiums.

Drivers understandably want the best vehicle they can afford, but the make and model they choose can make a big difference to the price of their taxi insurance.

While they may be tempted to snap up a deal on an executive saloon or slightly older luxury marque in good condition, these often come with higher taxi insurance premiums, as well as costing more to run in terms of fuel.

Choosing a more modest vehicle will help reduce taxi insurance premiums, even for drivers with blemishes on their driving record. Opting for something that costs less to repair in the event of a claim or that is less appealing to car thieves also helps reduce premiums. Whatever vehicle they choose, newer models with modern security systems help reduce the risk of them being stolen.

Patons Taxi Sales has more than 50 makes and models of vehicles which are all suited to the taxi industry, including a range of new and used saloon cars, hybrids, seven and nine-seater vehicles from leading manufactures.

Whatever vehicle they choose, insurance companies class taxi drivers as higher risk because they spend more time on the road. As a result, their public hire insurance and private hire insurance premiums are higher than they would be for non-taxi drivers with the same experience and driving record.

Insurers generally reward drivers with no history of claims or convictions with cheaper insurance premiums when it’s time to renew their taxi insurance policy, while those with points on their licence or who have made claims – even if it 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.

The reason for this can be seen in research by comparison site insuremystuff4less which found that almost one in four – 24% – taxi drivers have made a claim in the past five years.

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. 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.

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 broker such as Patons, as well as choosing their next vehicle from Patons Taxi Sales.

All information is correct at time of publication. Information provided within this article may have changed over time. No responsibility for its accuracy or correctness is assumed by John Patons Insurance Services or any of its employees.