Updated: Oct 2, 2022
The Mayor of London has said taxi drivers should look to trade associations or unions to engage with insurance firms when it comes to discussing rising premiums facing the trade.
Sadiq Khan, the Mayor of London, said neither Transport for London (TfL) or himself could affect what taxi drivers pay when it comes to insurance, but recognised that costs were rising.
Rising fuel and vehicle costs can however be covered by increasing taxi tariffs. Inflation and rising running costs could see London taxi fares rise over 11% next Spring according to latest cost index pricing used to calculate taxi fares.
A mixture of high fuel prices, rising vehicle costs and rapidly rising inflation levels, are driving the increase as the annual taxi fares review process begins to take shape.
The last fares increases was approved on 9 March 2022, when the TfL Finance Committee met to approve a new black cab taxi tariff to help cabbies meet rising costs.
London Assembly Member Keith Prince asked the Mayor of London whether he would work with the insurance industry to find a solution to the ‘prohibitive vehicle insurance premiums’ facing the taxi industry.
Prince pointed out that significant consideration for older licensees when renewing should be considered given the higher than usual costs.
Sadiq Khan responded: “I recognise that costs faced by everyone at the moment, including licensed taxi and private hire drivers, across a broad range of areas are high and may increase further.
“Insurance costs are one of the factors taken into account as part of the cost index that is used to inform decisions about taxi fares.
“I cannot set insurance premiums and neither can Transport for London (TfL). However, there are a number of industry and driver representative bodies and unions who are well placed to individually, or collectively, engage with and lobby insurance companies on behalf of their members.”