Why Taxi Insurance Is Expensive Compared to Average Car?

A question usually comes from the drivers driving a taxi, why taxi insurance is expensive compared to regular cars. There are various reasons for the expensive insurance coverage for a taxi, however, the most obvious reason is that taxi drivers cover more miles compared to the average motorist. As a taxi driver, you face a lot of other issues ranging from endless traffic jams to unruly passengers.

If you are driving a taxi, it is obvious to have enough issues ranging from endless traffic jams to unruly passengers. Covering more miles and driving your vehicle in the busy areas requires you to pay more for your taxi insurance instead of the conventional motor insurance policy.

Why Taxi Insurance Is So Costly?

Private hire Insurance for your taxi is more expensive compared to the traditional cover. This is because taxi drivers cover more miles than other motorist and they often drive in the congested, more busy areas. The fact is you drive more miles than the average motorist that increases the probability of getting an accident. And this will be compensated in the price you’ll pay.

Transport Greater Number of Passengers:

Another reason for the expensive coverage is that taxi drivers tend to make the journeys in the vehicles big enough to fit a greater number of passengers. As the taxis are bigger than the average vehicles, that is the direct indication that taxis fall into a higher car insurance group.

The car insurance category in which a taxi falls into leaves a big impact on cost. Higher will be the insurance category, more expensive the premium. These reasons make the insurance premium high for the taxi cover compared to standard motorists.

Types of Taxi Insurance Policy

When it comes to private hire taxi insurance, you will find three main types of insurance policies such as named driver, the policy only and any driver policy.

The policy only is the lowest level of coverage. It is the most basic and cheapest form of cover. However, adding more names to the policy make it more expensive.

Named driver policy is for the drivers whose names added to the policy – no one else of them. It is the middle type of cover. To save the money, if a driver is driving your vehicle for a few days, it is wise to add his/her name for those specific days.

Any driver policy is the most expensive type of cover that covers anyone who is driving your vehicle with your permission. Having any driver policy allows the staff not to wait for a specific vehicle. It also saves you from the hassle of getting the new members registered for the vehicle.

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