Thinking of Working as a Taxi Driver? Here’s What You Need to Know About Insurance

It’s easy to be envious of taxi drivers. Driving a taxi is the type of job that has minimal requirement to get in to, most people who can drive can earn their taxi licence. Working as a taxi driver offers a rare combo of flexible working hours, excellent pay and a job that really is for those that enjoy working with other people, despite it’s accessibility as a new career path,

Taxi drivers are faced with new people, as anyone can phone a taxi, situations and locations every day. What a taxi drivers do, driving people from one location to another, may not sound very exciting. However, if you’re the type of person who enjoys meeting new people and interacting on a personal levels with your customers, there are few jobs that offer the same potential as being a taxi driver.

If you fancy working as a taxi driver, you will need to have car insurance for your vehicle. Taxi insurance is legally requiremed for cars that are being used as taxis or hire vehicles, and most car insurance policies won’t cover you if you are using your vehicle in a commercial capacity.

Here’s everything you need to know when taking the leap in becoming a taxi driver.

What is the Difference Between Taxi Insurance and Car Insurance?

The idea of both car insurance and taxi insurance is fundamentally the same. Both types of insurance are there to financially protect vehicle owners from any accidents they are involved in or any breakdowns and other issues their car may have. However, insuring a private hire vehicle like a taxi is far more expensive than insuring your personal vehicle.

How Much is Taxi Insurance?

As with most types of car insurance, the cost to insure a taxi can vary wildly according to a number of different factors. The usual factors affecting the cost of car insurance will be in play. In example, the age of the driver, the make and model of the car, and the history of the driver or business making in question will all ultimately have an effect on the final cost.

The area where you intend to work will impact the cost of your insurance as well. If you are going to be working in a bustling city centre where accidents are more likely, you will have to pay more expensive premiums than someone who is working in a quiet rural area. The area you plan on parking your vehicle when not in use is another player that will affect the cost of your insurance.

If you intend to park your vehicle in a dedicated off-road spot or garage, you premiums won’t be as high as someone who is going to be parking their vehicle at the side of the road in a big city.

How Can I Keep My Costs Down?

Insuring your taxi is a cost you cannot avoid. However, there are many simple things that anyone can do to try to reduce the cost of their insurance premiums. For example, having no points on your driving licence will ensure that you pay as little as possible for your insurance. If you drive sensibly, following the rules of the road and avoid getting into any accidents or speeding, you will find it much easier to remain a good driver on paper.

You should also regularly service your vehicle to make sure that it is in perfect working order and that it provides a safe and comfortable ride for your passengers. Aim to have your taxi serviced every every 6 months, or once every year for a full check-up.

You can also choose a specific vehicle that is going to be relatively cheap to insure. If you have decided to become a taxi driver but you don’t have a vehicle to use just yet, find out how much it will cost to insure the taxi before you buy it. As usual, high-end cars and those that have been heavily modified tend to cost more to insure.