THE TAXI INSURER: What steps can taxi drivers take which may LOWER their insurance premiums?
- David Sweeney
- 1 day ago
- 2 min read
There are three principal measures that taxi drivers can take to help keep their insurance premiums as affordable as possible. The first of these is to install CCTV cameras in their vehicles.
Install CCTV cameras
A lot of our customers are now investing in forward-facing cameras, which are installed on the dashboard of their vehicle.
This may be because their insurance provider has insisted that they do so, as the geographical area in which they operate is prone to high rates of claims for accidents. Equally, the customer may proactively choose to do so, because they recognise the safety and financial gains that cameras can bring.
Insurers will generally offer drivers a discounted premium in return for cameras being installed in their 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 settle the claim more quickly.
Insurers understand that drivers are going to be involved in a certain number of accidents – there's no way around that. But if a driver has installed a CCTV camera in their vehicle, it can help the claims department to settle claims more efficiently.
The main benefit of settling claims in a timely manner is reduced cost. If your driver is at fault and the other party’s driving a hire car, the quicker the insurer can close that claim, the cheaper it is for them, because hire cars can cost up to £300 a day.
Embrace telematics
The second significant action that drivers can take to manage their insurance premiums is to fit their vehicle 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.
For example, telematics can alert insurers to a driver who’s excessively speeding on a regular basis. Insurers can then discuss that issue with the driver at renewal and ensure they adjust their driving behaviour accordingly.
Use a taxi insurance broker
A third way for drivers to potentially keep a lid on their insurance premiums is by working with a taxi insurance broker.
If a customer has been with a broker for several years and suddenly experiences a year in which their claims frequency dramatically increases, the broker can support them. At renewal, the broker can investigate the factors behind the sudden rise in the customer’s claims frequency and then explain them to the insurer, making as strong a case in the customer’s favour as possible.
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.
