Becoming a new taxi driver can feel overwhelming with all the regulations, expenses, and day-to-day responsibilities you need to manage. One area you don’t want to overlook is making sure you’ve got the right insurance in place, without overpaying. At SEP Insurance, we specialise in helping taxi drivers get the cover they need at competitive rates.  

Here are our top tips for new taxi drivers to help you save money and protect your livelihood. 

Transfer your private car no claims bonus 

Many new drivers aren’t aware that often they can transfer their private car no claims bonus when applying for insurance. This can significantly reduce your insurance costs so it’s worth checking if you can take advantage of this to get an introductory discount on your policy.  

Install dash cams  

Fitting a dash cam in your vehicle doesn’t just add an extra layer of security; it can also help reduce your annual premium. These devices lower the risk of claims disputes, providing clear evidence in the event of an incident, which makes underwriters view your policy as less risky. It’s a simple, cost-effective way to protect both your vehicle and your insurance costs. 

Consider increasing your excess 

Another way to reduce your premium is by opting for a voluntary excess. This means that you agree to pay more if you need to make a claim, which lowers your perceived risk in the eyes of the insurer. If you’re confident in your driving and want to keep your monthly payments down, increasing your excess can be a smart move. 

Tailor your insurance to your work hours 

Not all taxi drivers work the same hours, and some might only drive part-time or during the day. If you don’t plan on working late nights, let us know. Some underwriters can adjust your policy to reflect your working hours, potentially saving you money if you only drive during designated times, like the typical 9 to 5 shift. 

Owning vs. renting your vehicle 

One thing that often surprises new drivers is how owning your vehicle can affect your insurance premium. If you’re leasing or renting a taxi, this can increase your policy costs due to the added risk associated with not owning the car. When possible, owning your taxi outright can help lower your premiums, giving you better control over your expenses. 

Get a letter of experience 

If you’ve rented a taxi before and can obtain a letter of experience from the company, this can also help reduce your insurance costs. The letter should confirm that you’ve driven without any claims for at least 12 months. We can refer this to our underwriters for an introductory bonus, further cutting down your initial premium. 

Stick to your local taxi authorities 

In recent years, there’s been an increase in drivers registering with councils far from where they live and work which can actually lead to higher premiums or even result in underwriters declining your policy. To avoid this, we recommend sticking to the taxi authority in your local area. It’s not only better for your insurance costs but also keeps things simpler for your business. 

SEP Insurance can help you navigate your options and get the best policy for your needs, we have solutions tailored to you. Get in touch now for a no-obligation quote.