Why can cover for taxi drivers cost more?

Whether you’re driving a private hire taxi working out of a rank or a licensed hackney carriage picking up fares in the street, you might find that your cover costs more than other kinds of motor insurance. In the following passages, we’ll explore the factors that impact taxi insurance so you can understand the premiums you might be asked to pay.

A question of mileage

Taxi drivers typically cover far more miles than your average motorist, often in urban areas that are heavily congested with traffic. Insurers work out the cost of cover based on risk, and statistically, this style of driving means that those behind the wheel of a cab have a greater chance of encountering an accident on their travels. In a busy city, this can be amplified with a wide variety of pedestrian, cyclist, and vehicle encounters each day presenting plenty of potential hazards.

More people on board

Whether they’re shuttling to the airport with a family on holiday or taking a hen night party out for a tour of the town, taxis often have a greater capacity as people carriers and as a larger vehicle, will cost more to insure. Additionally, because it may be more likely that there are more passengers on board, the risk of individual personal injury claims also rises, leading to a hike in the premiums that drivers must pay.

The cost of customisation

Vehicles that have been modified from their original manufacturer’s specifications may also face higher insurance premiums. When private or public taxis are customised, for example, to add an access ramp for wheelchairs, this can boost the price of premiums.

Added protection

Finally, to ensure a taxi driver is protected in the event that their passenger makes a claim against them, they may also need to add taxi drivers public liability insurance to their policy, raising costs.

If you’re looking for the most cost-effective cover when driving your cab, you can rely on us for specialist advice on ways to reduce the price of your insurance.