The Taxi Insurer urges drivers to use CCTV and telematics as research shows cab trade hardest hit by costs and inflation
- Perry Richardson
- 3 hours ago
- 3 min read
Taxi and private hire drivers are being encouraged to consider installing dashboard cameras, adopting telematics technology and seeking specialist broker support as insurance costs remain a major challenge across the industry.
The advice comes from David Sweeney, head of taxi broking at The Taxi Insurer, following research indicating that the taxi and private hire vehicle (PHV) sector has been among the five industries hardest hit by inflation over the past decade. The findings also suggest that general insurance costs have increased by 76% during the same period.
According to Sweeney, one of the most effective measures drivers can take is fitting forward-facing CCTV cameras within their vehicles. He said insurers often view dashboard cameras favourably because they provide an independent visual record of incidents and collisions.
Sweeney explained that video evidence can help insurers determine liability more accurately and speed up the claims process. Faster claim resolution can reduce uncertainty for insurers and, in some cases, may result in discounted premiums for drivers who have cameras installed.
The Taxi Insurer says drivers and operators can take practical steps to help reduce premiums as the sector faces sustained cost pressures from inflation and rising insurance prices.
Another recommendation centres on the use of telematics devices. These systems use embedded sensors to monitor a range of vehicle and driving data, including engine temperature, idling time, tyre pressure and fuel consumption. The information is then shared with insurers to help build a picture of how a vehicle is being operated.
Insurers increasingly use telematics data to assess driving behaviour and overall risk levels. Drivers who demonstrate safer and more consistent driving habits may benefit from more competitive insurance pricing, although individual outcomes will vary depending on insurers’ underwriting criteria.
Sweeney also highlighted the role of specialist taxi insurance brokers in helping drivers and fleet operators navigate the market. He said brokers with experience in the taxi sector typically maintain relationships with multiple insurers and can help identify policies tailored to the specific needs of individual drivers and businesses.
Insurance affordability remains a key concern for many drivers across the UK taxi and PHV sector, particularly as businesses continue to manage higher vehicle, fuel, maintenance and operating costs. Industry stakeholders have repeatedly identified insurance as one of the largest fixed costs facing drivers, alongside vehicle finance and licensing expenses.
Sweeney said: “There are three principal measures that taxi and PHV drivers and businesses can adopt to help keep their insurance premiums as affordable as possible.
“The first of these is to install forward-facing CCTV cameras on their vehicle dashboards. Insurers will generally offer a discounted premium in return for cameras being installed in vehicles because, in the event of an accident, they've got a reliable visual record of an event as it took place. This video footage enables them to make an informed decision on liability and can help to settle the claim more quickly.
“The second significant action that drivers and businesses can take is to fit their vehicles with telematic devices. Using embedded sensors, telematics constantly monitors vehicle performance, including engine temperature, idling time, tyre pressure and fuel usage. This data is then sent to the insurer, so it can monitor the driver’s driving style, and is used to help determine the driver’s risk profile, and therefore their premium.
“A third way for to potentially keep a lid on insurance premiums is by working with a taxi insurance broker. These specialists have spent years nurturing relationships with a trusted panel of insurer partners and focus on finding products and policies that meet their clients’ requirements and expectations.”
