Taxi Fleet Insurance
If you operate two or more taxis then you should consider fleet insurance instead of individual policies. But why, I hear you ask. Well firstly, fleet insurance will, in most cases, be cheaper than taking out policies for every single car. The other advantage of fleet insurance for your taxis is that it cuts out the stress and paper work that comes with having to manage individual policies.
Fleet Insurance Costs
The cost of taxi fleet insurance will depend on a variety of factors. The most obvious being the model of vehicle you wish to insure. If you operate a large private or public hire fleet than in most cases you will want a multi-vehicle policy. This means you can insure all your cars in one policy even if they are different models. For example you may have a minibus for large groups where as standard A to B journeys are covered by saloons. If you run a fleet of cars which are the same model then you will only need a single vehicle type policy. The latter is the cheaper of the two but isn't as flexible.
Driver Age
Like standard car insurance, the price of your policy will depend on a number of factors. The first is driver age. In the current climate, insuring anyone under the age of 25 on taxi insurance is very expensive. This is why it's recommended that all your drivers within the fleet are over this age in order to keep your insurance costs down. Another factor that can affect the price of your taxi fleet insurance is of course the area your company is based and where you operate. It will come as no surprise that firms in city areas will have to pay more for insurance than taxi fleets based in small towns. This is due to the fact that taxis in metropolitan areas face more risks - not only are roads busier but operators are also more at risk of vandalism and theft.
Fleet Rating
Experience will also lower your premiums. Taxi fleet insurance costs will reduce once your group of vehicles have become fleet rated. This works in a similar way to a no-claims bonus but applies to the whole fleet as a rating which is passed between insurers. The fleet rating will show how many years you have operated the fleet, how many vehicles were covered and how many claims (if any) you have made.
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Consult with an FSA authorised insurance advisor if unsure on any topics related to car insurance.
