Taxi insurance is mandatory, but why has it become so expensive? To find out why
keep on reading. According to the study published, the number of taxicabs on UK roadways has nearly decreased by half over the last ten years. Numerous drivers have quit the profession, with many acknowledging the high cost of insurance as a key factor in their choice to stop driving cabs. The taxi business has its pros and cons, just like any other business. As the insurance premiums are getting more expensive and complicated, a significant number of insurance buyers have complained about it.
For skilled and experienced drivers, the cost of their insurance has increased to levels that are now just unaffordable. Taxi drivers have been forced to decide between paying ridiculous amounts of money to continue working or quitting taxi work due to large and growing insurance costs.
What is covered by taxi insurance that is not covered by car insurance?
To put it in simple words, standard car insurance coverage won’t effectively protect you, your car, and your passengers if you work as a cab driver. You must have proper taxi insurance coverage in place if you use your vehicle for hire.
Third-party insurance, which guards against harm or damage to other cars, people, or property, is the bare minimum coverage required to operate a vehicle on UK roads. Your vehicle will be protected from any damage brought on by fire and theft under the next level of coverage, third party, fire, and theft. Even in a collision that’s regarded to be minor, comprehensive protection, the highest level, will also protect against damage to you or your vehicle.Even in an accident that is judged to be your fault, comprehensive protection, the highest possible level, will cover against damage to you or your automobile.
Taxi insurance companies offer the same three levels of coverage as ordinary car insurance, but it varies in a few ways that it guards you against the particular dangers you experience because of the following:
- the more mileage you are travel
- Your constant interaction with the general populace and your responsibility to care for them are
- Driving through congested areas and tense scenarios
- Having to drive at obnoxious times.
- You’ll either have to have public hire taxi insurance or private hire taxi insurance, depending on the kind of taxi you operate. More information is provided below.
Why are insurance premiums for taxis so high?
According to industry experts, there are many considerable factors that have impacted the cost of taxi insurance in the United Kingdom. Some disagree and say that for a period of time, the market was excessively competitive, with rates that were insufficiently high and unrepresentative of the risk of insuring the policyholder. Taxi drivers are now being penalized as a result of the old times’ low insurance premiums.
In addition, the cost of taxi insurance in the United Kingdom has increased as a result of the amount paid out in claims. The pricing models used by insurers are based on statistical data analysis, which places a strong emphasis on the costs associated with processing claims.
Why is it challenging for drivers to obtain less expensive insurance?
In recent years, physical injury claims in the United Kingdom have cost far more than those in the regions. According to estimates, rear-end collision claims comprise 80% of all automobile insurance claims in the United Kingdom as of 2019. Taxi insurance rates have increased to preserve the stability of the financial system as a result of the amount that insurance companies have paid out for these claims.
It might be getting more difficult for motorists to obtain a less expensive option when they receive high renewal quotations due to a lack of competitiveness in the taxi insurance industry.
Introducing Protect My Taxi
At Protect My Taxi, we are putting a lot of effort into transforming the London taxi insurance market on a fundamental level. We wish to offer affordable, new, and enhanced methods for protecting drivers while they are on the road.
Protect My Taxi’s taxi insurance is designed to provide drivers with the security they require at cost-effective premiums. Our insurance protects you against inflated claims and ensures that you always have documentation to provide in the event of an occurrence by fusing insurance with cutting-edge technology.
So how does it function?
When you buy your insurance coverage with Protect My Taxi, you can get a smart device to install in your car. Setting up your device is quick and simple, and shouldn’t take more than a few minutes. You get a couple of choices here. You can install plug-in devices or a dashcam as well. Doing this will help you keep a record of your driving.
You’ll always have documentation to provide to us if you’re ever engaged in an accident while you’re driving, which simplifies the claims procedure. Additionally, our coverage aids in defending you against false claims that are not your fault.
Please get in touch with us if you’re interested in learning more about what Protect My Taxi’s taxi insurance cover can provide. We have a helpful crew available seven days a week. Call us at 0161 711 0066, and we’ll be pleased to assist you.
Why is insurance for cabs more expensive than insurance for cars?
Insurance for a cab is typically more expensive than insurance for a car because you are likely to travel more kilometers each year and therefore run a higher risk of a crash. Therefore Due to the statistically higher chance of having an accident and the fact that taxi drivers travel more miles than the majority of motorists, taxi insurance typically costs more than car insurance. Taxi drivers frequently have larger vehicles that fall into a higher insurance group in addition to traveling greater distances. Also, there is a chance that you will be the target of personal injury lawsuits since you transport passengers.
Besides that, you probably drive a bigger car because you transport passengers, which can put you in a higher insurance group. Your premium is going to be greater the higher the insurance group your automobile is in.
