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Why is Taxi insurance more expensive then car insurance?

October 28, 2014

Taxi insurance is more expensive than car insurance for a number of reasons, the first being that as a taxi driver, you are responsible for the safety of the passengers that you are transporting. Should you be involved in an accident which results in your passengers being injured, you could be made held accountable for thousands of pounds if they decide to make a claim.

Taxis also accumulate a lot of miles on a daily basis, therefore this is recognised as a higher risk to insurers. It’s a law of average – the more a vehicle is on the road, the higher the risk of an incident.

Taxi drivers are also known for doing a large amount of night time driving, which is also seen as a higher risk as it is a more dangerous time to drive. This is due to lower visibility and particularly on weekends, there is a higher chance of becoming a victim of an alcohol induced attack.

Taxi drivers carry cash around with them when on duty and whilst you may keep it in a safety deposit box out of sight, most people are aware that taxi drivers carry cash, therefore this makes them a target for theft.

City centre driving is also a factor when it comes to paying a higher premium then car insurance. This is because driving in city centres can be very busy and hectic, especially during rush hour. This is also an element as to why taxi insurance is more expensive, as the more traffic there is on the road the higher the risk of a collision.

Insure Taxi is a specialist insurance broker, with a team of expert staff committed to finding the lowest insurance premiums on the market. For a quick quote or for more information, call us on 0333 202 3144