Taxi Insurance: Tips for Reducing Your Premium

If you’re working as a taxi driver, it’s crucial that you have an excellent insurance policy. After all, your car is your livelihood. You need to make sure that it and the people in it are completely protected.

Unfortunately, taxi insurance can be very costly. The premiums are often very brutal. Thankfully, there are a few simple steps you can take that will help you to reduce your premium and save money in the process.

Limit Your Drivers

One of the main reasons that these insurance policies tend to be so high is because a higher-than-usual number of drivers are covered under it. Basic insurance policies are designed for a cab to be driven by a number of people.

However, if you limit the amount of people allowed to drive your cab, your premiums will reduce exponentially. If possible, you should try to restrict yourself to one driver — the owner of the cab.

Voluntary Excess

Having extra excess on your insurance policy can save you a great deal of money. With that said, you should be cautious about the amount of excess that you have. That excess will wind up costing you when it comes time to make a claim.

Look at the compulsory amount of excess on your policy, and aim for an amount that doubles that. That way, you’ll see plenty of savings, but you’ll still have the protection that you need. This needless to say is pivotal on a number of levels for anyone who is looking for better and more competitive insurance from their insurer.

Avoid Claims

According to Insurance companies benefit when you don’t make claims on your vehicle; you’re paying in, but they’re not paying out. Because of this, most companies offer substantial discounts to drivers who go an extended amount of time without making a claim.

If you’re not currently receiving a no claims discount, contact your insurance company and ask for one. If you are receiving a discount, ask them if it can be increased.

Play the Waiting Game

At the end of the day, the thing that will reduce the cost of your premiums the most is experience. Insurance companies are more than willing to give fair rates to experienced and safe drivers.

The longer you drive a taxi, the lower your insurance premiums will be. Stick with it, and look for ways to cut cost in the present. Eventually, you’ll be paying premium prices that are a lot more reasonable. This doesn’t have to be a major expense for you.

Cutting the cost of your taxi premium can have a lot of benefit for your business and allows you to spend money elsewhere. As with any smart business, saving money on insurance or anywhere else frees up capital and makes you more efficient.

So, take heed of the advice above and you can be certain that your business will be going in the right direction and still offer the upmost security and safety to those that you service in the taxi industry.

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